Choose the type of estimate based on what you need it for, the information you have and the work it needs to cover. A preliminary estimate works for the first budget discussion. To agree on the work, use a detailed estimate with quantities and rates. Prepare a separate estimate for a single stage, and combine stage estimates for the whole project.
Contents:
Why estimates matter
An estimate brings together the list of works, quantities, units of measurement and rates. It helps the contractor assess the budget and shows the client which work, materials and services are included in the total. If you account for a cost separately, note it next to the estimate.
Once the work is complete, enter the actual quantities in the report and compare them with the planned quantities for the same line items. If the figures differ, record which quantities, rates or tasks changed. See how to calculate an estimate variance and record changes for the steps.
How to choose the type of estimate
You can describe the same estimate in several ways. For example, a detailed estimate for finishing a flat can cover a single work package and also form part of a tender bid.
By the information you have
- Preliminary estimate. If you do not have exact measurements yet, use the data you have and current indicative prices. State the range and your assumptions so the client knows which figures will be refined.
- Detailed estimate. Once you know the quantities and scope of work, calculate each line item using measurements and current rates. Check the total and agree on the estimate with the client before work begins.
By purpose
For a tender, prepare the estimate to match the tender brief. When comparing bids, check that they cover the same work and use the same units and quantities. List excluded items separately so you can see why the totals differ.
By scope of work
- Stage or work-package estimate. Prepare an estimate for a particular stage or group of tasks, such as finishing. This lets you check the budget for that stage separately.
- Consolidated project estimate. Bring together the stage estimates and check that they cover all the work and that no line item is counted twice. Reconcile the project total with the stage totals.
Examples by type of construction work
- Earthworks. Measure the volume of soil to be excavated and state whether hauling it away is included.
- Wall masonry. Determine the quantity of masonry from the drawings or measurements and calculate labour and materials separately.
- Finishing. Separate surface preparation from applying finishes. State the units and quantities for each operation.
- Building services. Check the scope of installation, equipment and commissioning. State which work and supplies the estimate includes.
In 101, you can create an estimate for a single stage (in Russian), add items from the price list and check the amounts before sending it to the client. If you need a document for the whole project, compile it from confirmed stage estimates and check the overall total. The steps are shown in how to create an estimate quickly in 101.
