Calculation of construction cost

Costing is essential throughout the planning process. If done right, you can relate the expectations of project sponsors to actual budgets long before the first order of change arrives. Before starting the design, a project budget consisting of indirect costs (design payments, permits, lawyer payments, etc.) and hard costs (site acquisition, building construction, other infrastructure) should be developed. The resources of all who are going to pay for the project within a box where the project designer and all other participants of the project must agree. The more detailed and realistic the cost calculation the less likely the surprises will be as the project gets closer to its execution.

By the time the project reaches its construction stage, the project designer will have originally had a preliminary budget of his expenses, prepared by the project engineer, architect or landscape architect. Preliminary cost calculation is typically based on costs of similarly designed projects built within the same region. If it is a public project, there may be actual cost records that will enable the project manager to develop a base calculated on unit per housing or by structure and on the basis of anticipated amounts (egg quantities of linear meters of sidewalks or water lines Of a certain width or diameter or cubic meters of soil or gravel required). There may also be private service information that provides cost information for public and private projects.

Preliminary expenditure calculation is often used to obtain commitments from government funds or to arrange for preliminary financing. The closer the execution of the project, the safer the budget becomes, because a considerable amount of time can pass between the times the project is proposed and the time it is built.

The preliminary cost calculation will need to include an emergency fund, up to 30 percent, to cover uncertainties in the bidding process. If the project is proposed during a time of rising land, material and labor, the fund may need to be higher for the fluctuating cost of the items in the project.

The typical costs included in the facet of the preliminary expenditure calculation include:

Indirect costs

  • Attorney payments;
  • Project management payments;
  • Permit and bond requirements;
  • Design and inspection payments;
  • Advertising / marketing costs.

Hard costs

  • Costs of building construction;
  • Land acquisition;
  • Services, include sanitary and storm drainage, water, gas and electric lines;
  • Erosion and sedimentation control;
  • Pavement of streets, curbs, gutter and sidewalk.

The final construction cost calculation is completed shortly after it has been determined to put the project to bid and after all requirements for government approval have been met. The project designer will prepare a worksheet detailing the calculation that makes up all site improvements and building costs in great detail. Electronic sheets such as Excel and Quattro Pro are used to compute and also make the total of such costs. You can buy different standardized models at different prices. These calculated alternative costs can be used to accelerate the estimation process. Costs are specified on a meter or square meter basis, per item or similar basis.