METHODS OF COST ESTIMATES FOR BUILDINGS

Cost estimation is a critical aspect of any building project. It helps the project manager to determine the budget required to complete the project and ensures that the project remains financially viable. There are various methods of cost estimation for buildings, and each method has its advantages and disadvantages. In this article, we will explore some of the most commonly used methods of cost estimation for buildings.
1. Square foot method
The square foot method is one of the most straightforward methods of cost estimation for buildings. It involves calculating the cost per square foot of the building based on the type of building, location, and other factors. The cost per square foot is then multiplied by the total square footage of the building to determine the estimated cost of construction.
This method is best suited for projects that have similar buildings, such as residential or commercial buildings, and where the design is simple and straightforward. However, it may not be suitable for complex buildings that require intricate designs, unique features, or specialized equipment.
2. Assembly method
The assembly method involves breaking down the building into different components, such as walls, floors, roofs, and estimating the cost of each component. The costs of these components are then added together to determine the total cost of construction.
This method is suitable for complex buildings that have unique designs or specialized equipment. It allows for a more accurate cost estimate because it takes into account the individual components of the building.
3. Unit-in-place method
The unit-in-place method involves estimating the cost of each construction item, such as bricks, steel, or concrete, and then multiplying it by the number of units required for the construction of the building. The total cost of construction is then determined by adding up the costs of all the construction items.
This method is best suited for projects where the construction materials and labor costs are the primary factors driving the project’s cost. It allows for a detailed cost breakdown of the building’s components and can help identify areas where cost savings can be achieved.
4. Parametric estimating
Parametric estimating involves using historical data and statistical analysis to estimate the cost of a building project. It takes into account various factors such as the size of the building, location, construction materials, and labor costs, to develop a model that can predict the cost of a building accurately.
This method is best suited for large and complex projects where there is a lot of historical data available. It can be time-consuming and costly to develop a parametric model, but once it is developed, it can provide accurate cost estimates for similar projects in the future.
5. Detailed cost estimating
Detailed cost estimating involves developing a comprehensive and detailed cost breakdown for each component of the building. It involves estimating the cost of each material, labor cost, equipment, and overhead costs. This method is time-consuming but provides the most accurate cost estimate for a building project.
This method is best suited for large and complex projects where there are many variables that can affect the project’s cost. It allows for a detailed cost breakdown of the project, which can help identify areas where cost savings can be achieved.
In conclusion, the method of cost estimation for a building project will depend on the project’s size, complexity, and budget. Each method has its advantages and disadvantages, and project managers should choose the method that best suits their needs. A detailed and accurate cost estimate is crucial to the success of any building project and can help prevent cost overruns and delays.