But a skilled estimator will account for as many factors as necessary - including such things as market conditions - to create an accurate estimate. The Public Service Company of Indiana had completed the project only halfway and spent $2.5 billion due to cost overruns.Įstimating the cost of any project with absolute precision is impossible, and projects can fail for unforeseen reasons. The owner abandoned construction in 1984, seven years after it began. One notorious example was the Marble Hill nuclear power plant in Indiana. In projects constructed with public funds, cost estimates increase accountability, provide transparency, and enhance trust in your ability to manage the project properly.įailing to prepare a reliable cost estimate can have disastrous results. On a mega-project, small miscalculations become magnified. They are also essential for large civil projects or mega-projects because of their sizable scope and the potential involvement of public money.

You routinely do cost estimates for all kinds of construction projects, from building new structures to remodeling.Īccurate estimates are especially critical for development projects, which have budgets and timelines closely linked to paying back lenders and generating revenue as early as possible. It’s a core component of earned value management, a project management technique that tracks a project’s performance against the total time and cost estimate.Ī good starting point is this construction estimator template.Ĭreating a construction cost estimate is good practice for anyone who cares about how much their project will cost. You usually prepare estimates with the input of architects and engineers to ensure that a project meets financial feasibility and scope requirements.Ī good cost estimate prevents the builder from losing money and helps the customer avoid overpaying. Contractors use them when deciding whether to bid on a project.

Project owners use cost estimates to determine a project’s scope and feasibility and to allocate budgets. Clients considering large projects often seek multiple cost estimates, including those prepared by contractors and those calculated by independent estimators. That’s why they devote time and effort to estimating how much a project will cost before deciding to move forward with it. Of course, builders and clients both worry about the financial impact of cost overruns and failing to complete a project.

Getting started with the Smartsheet APIĬonstruction cost estimating is the process of forecasting the cost of building a physical structure.ENGAGE Smartsheet ENGAGE brings together our global customers, experts, and partners to share their experiences, ideas, and best practices.Smartsheet events Your hub for Smartsheet events, webinars, Q&As, and user groups.Partners Learn about the Smartsheet partner program and access our partner directory.Community Explore user-generated content and stay updated on our latest product features.Help and Learning A comprehensive knowledge base, including articles, tutorials, videos, and other resources that cover a range of topics related to using Smartsheet.Content Center Articles and guides about project management, collaboration, automation, and other topics to help you make the most of the Smartsheet platform.

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