Construction Project Management: Theory and Practice

4

Client’s Estimation of Project Cost

Introduction, approximate methods of estimation, types of estimates, methods of structuring project costs, illustrative cases in preparation of estimate

4.1 INTRODUCTION

An accurate estimate of the cost involved is of great importance, especially to a contractor, as this forms a basis for his bid proposals, procurement plans and control of the cost being incurred in a job. Estimating in construction projects is a very complex process due to inherent interactions and interdependence involved and the absence of standard norms. Given the highly competitive environment at present, it is important that special attention is paid to cost estimation so that a contractor can win a job and still maintain a reasonable ...