Budget Estimates and Semi-Detailed Budget Estimating
How to prepare a Budget Estimate
There are three types of estimates; Conceptual or Budget Estimates, Semi detailed estimates and Detailed Estimates. A conceptual estimates evaluates the project scope and does not include detailed quantity surveys or material calculations and takeoff for the specific items and quantities that comprise the project. Budget estimates determine if a project should be bid on a detailed basis and to gain an understanding of the scope of a project, approximate cost and feasibility. The budget estimate is based on an approximation of a unit measurement for building a system based on square foot basis, industry experience with like systems and project scope. The budget estimate does not consider variations in design scope. A budget estimate may vary as much as 25% or more from the actual material and labor cost for a detailed estimate that requires a detailed takeoff to achieve accuracy. The budget estimate provides a conceptual basis for a project and typically is provided prior to a Semi-Detailed Budget Estimate. The Semi-Detailed estimate will break down the project in component parts and material types as you would when conducting a detailed estimate. It includes an approximate list of individual items in a summary and extension report without conducting a detailed takeoff of material component cost and labor cost. It should be made clear that the Budget Estimate and Semi- Detailed Estimate will require a detailed takeoff in order to arrive at a final bid and project cost.