Construction cost estimate is a vital part of Construction Management. The cost estimator should be very careful while estimating cost of construction. Estimating construction cost is the most complicated procedure for forecasting the cost by performing quantitative analysis. The cost estimator should have made in depth analysis of labor and material cost to compute the construction cost. This analysis varies from the preliminary estimate in construction bids which includes volume and area.
Construction cost estimate is important to construction bids as it ensures that the projected cost is actually the real cost. Preferably, a theoretically developed estimate should be nearer to the actual cost. Prior to allocate any detailed estimate organized by various parties, the estimates should be reconciled. The reconciliation process should be regularly updated from one phase of a project to the next.
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