What are Estimation and Costing?
Estimating and Costing are one and the same things. The estimate is defined as the process of calculating or computing the various quantities and the expected cost spend on a particular work or project.
The main objective of an estimate is to enable one to know the probable cost of the work before the completion of the project. If the estimate is prepared carefully and correctly there will not be much difference between estimated and actual cost.
Importance Estimation and Costing
It is necessary for fixing the budget for the proposed project
It helps for calculating the required quantities of materials and laborers for the project
It is required to draw up a work schedule
It is also helpful to check the works done by contractors during and after the execution
It is required for preparing tenders for the project
It is necessary for the valuation of land and building
Estimation and Costing Requirement
To estimate the probable cost of the work
To find the various types and quantities of material required
To find the various categories and quantities of labors required
To give an idea of the time required for the completion of the work
To help in fixation of standard rent and valuation of the project
Methods of Estimation
Out to Out and In to In (Long wall and short wall) Method
Types of Estimation
Preliminary or rough estimate
Plinth area estimate
Unit rate estimate
Cube rate estimate
Item rate estimate
Annual repair estimate and annual maintenance estimate
Hence estimation and costing help to work out the approximate cost of the project in order to decide its feasibility with respect to the cost and to ensure the financial resources.
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