5 Well-Known Construction Estimating Techniques

Construction estimating is the process of determining how much it will cost to build something. It's a lot more complex than just adding up the materials used in construction. In fact, many different techniques can be used to create an estimate. Here are five of those methods.

Top-Down Estimate

Top-down estimating is a technique that uses the bottom-line budget of the project as a starting point.

The estimator works from the top down, breaking down the total cost into smaller, more manageable chunks. The cost estimator then estimates each chunk and adds them together to get the total.

This technique is particularly useful when you don't know much about your project or want to ensure your budget is realistic.

Bottom-Up Estimate

A bottom-up estimate is the opposite of a top-down estimate. Instead of starting with the total cost and breaking it down into smaller items, you start with each item and add them until you get to your final number.

The general concept behind this method is that most projects have a lot of little things that add up quickly. Therefore, if you can calculate those costs separately, adding them together will give you an accurate picture of your project's cost.

Weighted Average Estimate

The weighted average estimate is one of the most commonly used construction estimating techniques. It is also the simplest and requires no special software or training.

The weighted average estimate is based on the assumption that all the materials included in a job have an equal probability of being used. This method works well for small jobs but can be unreliable on larger projects. For example, if you are building a home, it's unlikely that all four walls will be constructed with brick. Therefore, this technique wouldn't be appropriate for estimating such work.

Parametric Estimation

Parametric estimation is a method that uses estimates for various parameters and variables to calculate the final result. For instance, if you know how much concrete will be needed, how much rebar is needed, and how many hours it will take to pour the concrete, then you can calculate how many cubic feet of concrete you need.

This technique can be valuable for large projects that require a high level of precision. It's also helpful because it removes the guesswork from your calculations.

Cost Of Quality Estimating Technique

The cost of quality estimating technique estimates building costs that focus on preventing defects and failures during construction. This technique requires the estimator to consider things like the probable number of defects and failures that will occur, their severity, and how they will affect the project schedule.

It also involves determining how much it would cost to prevent these problems and how much it would cost to repair them after they occur.

Takeaway

Construction estimating is a complex process, but it doesn't have to be. Using these five methods, you can ensure that your estimates are accurate and complete without spending hours on them.