Initial Estimate
Are you somewhere in the range of 30%, 60%, or 90% completion with your drawing plans? Or perhaps you’re frustrated by preparing estimates from incomplete plans? Do you need a quick preliminary estimate to determine if a project fits within your client’s budget? Or are your suppliers delaying their price quotes? We’re here to help with fast and detailed preliminary estimates, including square footage costs, to help you analyze the feasibility of your project and move forward effectively with your clients.
With 15 years of experience in the AEC industry and a portfolio covering commercial, residential, private, and public projects, Smart Estimations offers the most reliable and defensible preliminary estimates based on insights from past projects. We provide per square foot or square meter costs for both finished projects and superstructures using professional estimating software, along with our proprietary databases, RSMeans, and Craftsmen. Our location-based database, paired with relationships with local vendors, enables us to generate the most accurate bill of materials possible.
What is a Preliminary Estimate and How Does It Help?
A preliminary estimate, also known as a conceptual estimate, is a rough cost forecast used to assess the economic feasibility of a construction project before detailed drawings are developed. It serves as a valuable tool for contractors, real estate developers, home builders, and project owners to make informed decisions about fund allocation, setting an initial budget, and comparing design alternatives early in the project lifecycle.
Since preliminary estimates are made at the beginning of a project, before actual design and construction begin, they are typically based on historical data from similar projects, adjusted for factors like time, location, and project size. Engineering principles are also applied to ensure a reasonable approximation.
There are various types of preliminary cost estimates that are utilized at different stages of a project. The accuracy of these estimates largely depends on the information available from the client, with more precise details typically leading to more accurate estimates.
- Preliminaries
- Substructures (footings, foundations, etc.)
- Superstructures ( brickwork, walls, sidings, roofs, staircase, floors, doors, windows)
- External/Internal finishes (flooring, drywall, painting, etc.)
- Fittings
- Mechanical (HVAC systems, ductwork, etc.)
- Plumbing (pipes, drains, fixtures, etc.)
- Electrical (cable, conduit, lighting, etc.)
- Labor
- Man Hours
- Contingency
- Project Schedule
Rough Order Magnitude Estimate (ROM)
The Rough Order Magnitude Estimate (ROM) is the first attempt to estimate the cost during a project’s lifecycle. It’s used to assess the project’s feasibility and supports decisions related to project selection and allocation. ROM estimates have an accuracy range of -50% to +50%.
Ballpark Estimate
A Ballpark Estimate is typically created by contractors to define the scope of work for their clients. This allows owners to make budget-conscious decisions early on. It’s based on preliminary drawings and specifications, with an accuracy range within 20% of the actual cost.
Budget Estimate
The Budget Estimate is prepared during the planning stage of the project, using data from similar past projects. It outlines the costs for major project components, including materials and labor. Its accuracy typically falls within the range of -10% to +25% of the actual cost.
Definitive Estimate
A Definitive Estimate, also known as a digital cost estimate, provides a detailed, itemized list of the project components. It is based on fully developed project plans, and its accuracy lies within -5% to +15% of the actual cost.
How Can Our Preliminary Estimate Benefit You?
Our preliminary estimates offer significant advantages in the early stages of your project, including:
- Managing the budget and securing financing or loans
- Setting project cost limits for architects and designers
- Estimating material and labor costs for better cost planning
- Planning the next phase of the project
- Allocating funds and negotiating effectively with contractors and subcontractors
Call Us Today
Smart Estimations
- +17372828012
- info@smartestimations.com