Construction Project Cost Estimate Template Excel

Download Free Construction Project Cost Estimate Template Excel

Cost Estimate: A prediction of quantities, cost, and/or price of resources required by the scope of an asset investment option, activity, or project. As a prediction, an estimate must address risks and uncertainties. Estimates are used primarily as inputs for budgeting; cost or value analysis; decision making in business; asset and project planning; or for project cost and schedule control processes. Cost estimates are determined using experience and calculating and forecasting the future cost of resources, methods, and management within a scheduled time frame.

The Purpose of Cost Estimate

Cost estimating1 is the predictive process used to quantify, cost, and price the resources required to develop and deliver projects.

The need to solidify the estimation process can be seen in four areas:

Financial plan – cost estimates are used to obtain and allocate funding for projects.
Public trust – relies in large part on our ability to deliver transportation projects in a timely manner and within budget. Public declaration of project cost estimate ranges need to be thoughtfully provided using a well-documented, quality estimate.
Project controls – rely on cost estimates to help keep projects within the appropriate fiscal boundaries. The baseline project cost estimate helps keep the project from growing and expanding beyond spending limits.
Project resilience – as projects encounter problems, estimates are scrutinized. The quality of the estimate and the documentation provide critical support to project success.

The reliability of project cost estimates at every stage in the project development process is necessary for responsible fiscal management. Unreliable cost estimates result in severe problems in programming and budgeting. Estimates affect, staffing and budget decisions that could impair effective use of department resources. Communication with decision makers on critical budget issues is also adversely affected.