Construction Cost Estimation with Practical Example

Discover the basics of cost estimation, define what cost estimation is, and learn how to perform a cost estimate in this module of construction cost estimation with a practical example.

Discover cost estimation in construction by calculating project costs across material, equipment, manpower, and subcontractor costs, and learn breakdown analysis with unit material, labor, and plant costs, plus two methodologies.

Explains conceptual cost estimation methodology using end unit and physical unit methods, with examples from hotel rooms and hospital beds, and notes accuracy limitations.

Deterministic or definitive estimates form the second cost estimation method, offering about 50-60% accuracy; five classes range from highly accurate class one to least accurate class five, guiding documents.

Learn class one deterministic cost estimation using complete drawings, specifications, soil reports, and subcontractor quotations. Understand cost estimation concepts, categories, and the main power wedge calculator.

Calculate manpower wages by labor category, applying basic salary and allowances, then convert monthly costs to daily and hourly rates for plastering estimates.

Learn to estimate total construction costs by integrating manpower, equipment, materials, and subcontractor rates, using hourly, daily, monthly rates, quotations, and allowances.

Learn to estimate a project selling price by calculating total material, labour, equipment, and subcontractor costs, then apply allowances, overhead, contingencies, rate analysis, and profit margins to set the rate.