Construction costs estimating is one of the most important yet most neglected stages in construction. It is time-consuming, and the myriad of activities involved in construction leads many to neglect the exercise.

METHODS OF ESTIMATING CONSTRUCTION COSTS

There are different ways of construction costs estimating, as we will discuss below.

UNIT COST ESTIMATING

Unit cost estimating is a quick, easy and clean way of estimating construction costs. Cost estimators assign a unit cost to each component of the construction process. Setting the unit prices refines the process over time, as you can alter and modify subsequent projects for better estimates.

STICK ESTIMATION

Stick estimation is a prevalent method in cost estimation but also relatively cumbersome. One uses this method by listing every single possible cost on the job. It is an accurate estimation method but very time-consuming.

EMPIRICAL COST INFERENCING METHOD

This method uses statistics and regression models to determine a project's cost. It is, however, not recommended if you do not know how to use this method. It would help if you had someone on your team that explicitly does this.

PRODUCTION FUNCTION

Production function relates the amount built to factors such as labor and materials. To achieve a given output, you must look for the optimal input. It can be pretty accurate in estimating the input and output relations of projects.