Successful Int. Projects thru Effective Contract Docs - Construction Budgeting & Estimating Flashcards
What are 2 types of estimates that are used in the early stages of a project?
Order of magintude estimate and square foot estimate
What is an Order of Magnitude Estimate?
A ballpark estimate arrived at quickly based on scanty information and is intended to indicate only a rough range of probable cost.
What is a square foot estimate?
It is similar to the magnitude estimate and requires a knowledge of cost from a comparable project
Two slightly more accurate estimates to use when a project is further along are:
Component Estimate and Unit Price Estimate
What is a component estimate?
It is an estimate compiled from previous projects using actual cost as they are reflected on the contractors bid breakdown or schedule of values.
How is a unit price estimate used?
This is the type of estimate used by contractors to estimate their bids. It is exhaustive and time consuming. It cannot be used as a checkpoint because the documents have to be complete in order to do
