How Project Cost Estimate Is Done ?

how project cost estimate is doneEveryone needs a good shelter, offices, building and infrastructure but all them are bounded with there limits of income. So if your willing to go for construction you must know how project cost estimate is done? Project cost estimate is also a subject for civil engineer. A civil engineering can be define as the engineer who go for construction after planning, drafting, project cost estimate of a project at minimum cost and taking less time period of construction but it should be long lasting and must have strength to bear different loads.

Overview of how project cost estimate is done ?

When you know how project cost estimate is done? then you are able to save you budget and with in your budget you can build a good infrastructure that will be long lasting and have strength. There are some methods to calculate the project cost estimate of a residential building or a project. But one thing you should also keep in mind that due to not having huge investment according to engineered project cost estimate don’t try to build your house by your own ideas. Because engineered project cost estimate are according to the IS code used for construction.

The engineers used to do project cost estimate by keeping all engineering points of construction and that constructed building are much reliable and have strength to bear the loads under earthquake waves also. Because they used to designed the plan and drafting it according to the zones of earthquake and different loads. And estimation of project cost are done relevant to it.

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If you are not obeying the engineered project cost estimate, you need to be very careful because you are not following the engineer rules of construction and that constructed building can be fallen anytime.

Benefits of Project Cost Estimate

Following are the reasons how project cost estimate can benefit you :-

  • Project cost estimate helps an individual in determining the type of construction and cost related to it.
  • One should able to know which type of construction he could afford.
  • It also helps you to avail necessary funds for your construction as it could be preliminary determined.
  • Preliminary project cost estimate helps you to ensure that you have sufficient amount or funds to further go for construction.

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Calculate Your Project Cost Estimate

There are various terms which are used for calculating the project cost estimate. That are classified as the Direct Costs or  Indirect Costs.

Direct costs :- Direct cost are related to the construction or the projection that includes the salaries of team members of the project such as labors salary, materials costs, equipment cost which is used for the construction and travel costs that are performed for the completion of the project. Following are the direct costs –

  • Labor Costs :- This include the salaries of workers for the hour that work on the site or plan.
  • Material Costs :- Material costs include the costs of material which is used during the construction.
  • Subcontract :- Subcontract costs includes the person, work or services which is outside the company or needs other company for the contract.
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Indirect Costs :- Indirect costs are not directly accountable to the construction and also these costs are not directly related to the construction cost. This costs adds by the particular facility and function like cabin formation near by the construction site for the engineer. However, it is not required on construction project. Following are the indirect costs which are added in the project cost estimate.

  • Overhead Charge :- Overhead charges are not directly related to the construction cost but these are the cost for fixed time period. such as taking a office rents, housing, feeding, first aid etc. Overhead charges or costs are estimated in the project cost estimate by adding 5-15% of the construction costs or direct costs.
  • General and administrative costs :- General and administrative costs are directly related to the administrators. Because over all they support the company and construction procedure Such as head-office expenses, managerial , directorial, designing engineers, planners, etc.

Costs are also classified as :-

  1. Fixed Costs :- These are costs which are spend once for the construction for specific time period such as spending money on purchasing the equipment of construction.
  2. Time Related Costs :- These costs are the labor costs, rental cost which are effected by the time period.
  3. Quantity- Proportional Costs – These are costs which are related to quantity such as cement bags, bricks etc.

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