BusinessWhy do you need a Preliminary Estimate for Construction Cost?

Why do you need a Preliminary Estimate for Construction Cost?

Preliminary Estimate is needed for any building structure, regardless of the type and purpose.  It is very important to estimate a budget for these expenses to make sure one is not over or under budget.  Because at the end of the day, money matters. Sometimes people don’t realise that pre construction fees can be a lot. But with the help of a planned budget, it can be managed. This predicted budget not only conserves money but time as well. Afterall, no one wants a slowed down or delayed construction project. It is important that maximum profit is obtained. This can be achieved with the help of a skilled estimator. Most of the B

Construction Cost Estimating Services offer preliminary estimates. Although they are not part of the building’s original structure yet they are considered an integral part of the construction process. But is it really that important to get an estimate on these expenses? We are here to tell you whether getting a Preliminary Estimate holds significance or not. There are multiple things included in preliminary estimates such as

    • Excavation fees
    • Engineering fees
    • Architecture fees
    • Land acquisition or building cost
    • Equipment or fixtures
    • Permits
    • Consulting fees
    • Powering the site

Site-Based work

Site-based work is included in preliminary estimations. The land can have uneven terrain or obstructions of sorts. It needs to be made suitable for constructing a building. It includes Excavation, soil erosion control, and clearing. Site-based works of commercial or industrial buildings are generally greater than that of residential buildings. But even before leveling out the land, one needs to purchase and gain permits. These costs of permits are also included in preliminary calculations. Construction estimators make sure that they are accounted for. So these costs are not included in the building’s structure but they are vital for the proper establishment of any building.

Running Costs

Running Costs include heating, sewer, power, and lightening system. They are an integral part of a building’s function. All of these systems have to be connected to a source. Without them, a building cannot function optimally. It is important to calculate the budget for these expenses. They have to be connected to a grid or pipeline. Equipment and labour are also needed for their installation. These expenses are included in the preliminary estimate.

Guide Project Design

Preliminary Estimating guides that project. It gives a practical approach to the idea of the client. It tells us whether the construction scheme is achievable or not. Through preliminary estimations, one can check the feasibility of the construction plan. The idea of the building and the budget provided for the building need to support one another. The advantage of the preliminary Estimate is that it gives us a broad understanding of the expected cost of the project. It also informs us about the expected time that will be taken to complete these projects. So it gives direction to the project.

Lay Groundwork for Funding

Preliminary Estimate establishes a baseline for the project. One can get an estimate of the total cost that is going to be spended on the project. It tells us the budget, timeline as well as the scope of the project. If the cost is increasing the budget provided, the client can obtain financing and loans. So it presents a clear cut image to the client. One can go ahead and make a decision about the project before it is too late.

Analysing Environment

The environment of the building can also impact the project. Such as, while excavating one may find an obstruction in the path of the building. Moreover, the planned construction building might impact adjacent structures. So it is vital that we keep that in account. This will help establish the final architecture and design of the building. Other than that, climate can also impact the construction. Projects tend to be harder in extreme  climate environments as they are more difficult.

Resource Allocation

The process of Preliminary Estimating can also aid in allocation of resources. Clients may have a hard time adjusting to the limited resources that they have into their plans. How does the Preliminary Estimate do that? Well for one, it informs us about the cone constraints in budget and time. So clients can make decisions about prioritising where to utilise the funds first.

Another key point is learning about the current market rate of materials. In construction, there are always fluctuations in material cost. So it is important to identify what the current rate of materials is and how much quantity will it be required in.

Early Decision Making

Decision making is a skill that is critical for any project. Good decisions are the hallmark for a successful construction project. Decisions that are taken beforehand can protect the construction project from a big loss. It can help avoid costly errors and mistakes. Preliminary Estimates provide you with the relevant and necessary information that govern your decision making so you can make a good call.  Hence timely decisions at critical moments are very important for the project’s favourable outcome. It is better to change your mind before construction than to realise that you have made a mistake after the construction process has begun.  So a preliminary estimator can ensure that the construction proposal goes swimmingly.

Administrative Costs

Administrative costs are also a part of Preliminary Estimates. During a construction project, one may take aid from other professional experts. They work on behalf of the construction plan such as stakeholders or project managers.  So their payment is included in the budget planning.


To sum it all up, there are multiple benefits for getting a preliminary estimate. It can safeguard your construction plan and make it more smooth going. The decisions you take on the basis of preliminary predictions are going to be better and more accurate. There is less room for error in them. An accurate preliminary cost report will provide you with the relevant information to see how your construction is going to go. It will clear any ambiguities or confusions. It will save you from potential risks and make the construction scheme more well organised and streamlined!

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