A Preliminary Estimate and a Detailed Estimate are two of the most important types of estimates. The difference between these estimates may not be apparent which is why a breakdown is necessary to understand their concept.
This is why we have drafted a list of easy-to-understand differences that will not only increase your knowledge but also equip you to be ready for fieldwork.
Different Types of Estimates
Specifically, there are four different types of estimates in a construction project. They include
Preliminary Estimate: This includes creating a rough cost estimate for the project.
Detailed Estimate: Detailed estimate encompasses an extensive breakdown of cost-impacting factors.
Quantity Estimate: It refers to the quantification of materials and labour.
Bid Estimate: Performing estimation while competing to gain clients.
Construction Cost Estimating Firms
Construction Cost Estimating Firms offer a different range of services from preliminary to bid estimates. An estimating agency aims to forecast an accurate cost projection so a budget can be made. SMA Estimating LLC is a licensed construction estimating service that is experienced in making accurate budgets. They use advanced cost-estimating software such as:
- Trimble
- Planswift
- Bluebeam
- Stack
- FastPipe
- FastDuct
- Mc Cormick
- On Screen Takeoff
- Quest Estimating
- Xactimate
This software not only helps to make precise budgets but also aids the presentation of data. Clients are easily able to understand the calculations and a bond of trust is developed.
Difference Between Preliminary Estimate and Detailed Estimate
At What Stage of Construction These Estimates are Used?
Preliminary Estimate
“Pre” is a suffix that means the start of something. So a preliminary estimate is done at the early stages of the project. When the construction project is just beginning, a rough estimate is done. It’s a ballpark estimate. The details of the project may not be even finalized at this stage.
Detailed Estimate
A detailed estimate is prepared later in the project. The stakeholders have a clear idea about the construction project. There is clarity on the aim and goal.
Data Availability
Preliminary Estimate
Since a preliminary estimate is done at the start, it requires very little data. Information about the project is insufficient. Preliminaries Cost Estimators make the best use of Inadequate data to present the client with a rough, ballpark estimate.
Detailed Estimate
On the other hand, a detailed estimate requires extensive knowledge about the project. Every little cost-affecting factor is identified. Information about the scope and specifications of the project is available.
Level of Accuracy in Preliminary Estimate and Detailed Estimate
Preliminary Estimate
The preliminary estimate is a type of estimate that has low accuracy. With insufficient data, it is a rough estimate at best. It has a margin of about 25% to 35%.
Detailed Estimate
In contrast, a detailed estimate is highly accurate and precise. Estimators account for all direct and indirect expenses of a project and then evaluate its cost. Most people go for detailed cost estimates due to their accuracy.
Cost Breakdown
Preliminary Estimate
It provides an estimate of the obvious and prominent factors. The cost is not broken into smaller components. It focuses on the overall cost of the project.
Detailed Estimate
In detailed estimates, estimators have a lot of data to work with. So they break down costs into material, labour, equipment, overheads, etc.
Purpose
Preliminary Estimate
The purpose of a preliminary estimate is to check the feasibility of the project. Stakeholders can discuss and make decisions whether to continue with the project or not. It checks the financial viability of the plan.
Detailed Estimate
The goal of a detailed estimate is to design an accurate budget that satisfies the client. It aids in project execution and prevents unnecessary expenses. Moreover, it helps in procurement and winning bids.
Final Words
It is important to recognize the difference between the preliminary estimate and the detailed estimate. Every professional in the construction industry should have these terms at his fingertips. It will add to the growth of your business and your knowledge as well. Other than that, when embarking on a construction project, being aware of different types of estimates is also important. It will aid in tailoring a budget according to the requirements and demands.