How to make an estimate - a sample
The most important stage in the design of any building or system is the preparation of cost estimates. The estimate allows the customer and the contractor to establish the contractual value under the contract, optimally plan and analyze the entire range of construction works, allocate cash investments, and also carry out interim financial calculations.
First, decide on the method of calculating the cost of the estimate. In modern construction, the base-index method is more often used. The estimated cost of work includes three components: direct and overhead costs, planned savings. Direct costs are the sum of expenses for the purchase of materials, the operation of equipment, and the wages of workers. They are calculated by any of the chosen methods.