A percentage of about 5% is 10% is added as contingencies. In case of commercial projects as irrigation project residential building project and similar projects which earn revenue income, the probable income may be worked out and from the preliminary estimate, the approximate cost may be known and Then it may be seen whether the investment in the project is justified or not. The preliminary estimate is required for preliminary studies of various aspects of a work or project, to decide the financial crisis position and policy for administrative sanction by the competent administrative authority. Types of Estimates in construction Preliminary estimate вЂ“ 8 Types of estimates in construction and Methods of building estimates Types of Estimates in construction The account of all expenditure is maintained day to day during the execution of work in the account section and at the end of the completion of the work when the account is completed, the actual cost is known. What is Actual cost in Estimate?ДЄctual cost вЂ“ The actual cost of a work is known at the completion of the work.

If the estimate is prepared carefully and correctly there will not be much difference between the estimated cost and the actual cost. The actual cost is known only after the completion of the work from the account of the completed work. Before undertaking the construction of a project it is necessary to know its probable cost which is worked out by estimating.ДЄn estimate is a computation or calculation of the quantities required and expenditure likely to be incurred in the construction of a work. 8 Types of estimates in construction Methods of building estimatesДЁ Types of estimates in construction Methods of building estimates What is estimate in construction?ДЄn estimate is the anticipated or probable cost of work and is usually prepared before the construction is taken up.

Civil building estimate