Estimate

Definition

An Estimate is a prediction of the cost of performing work, an approximation of construction costs, based on experience and value judgments.

Purpose

The purpose of an Estimate is to provide a preliminary assessment of the financial requirements for a project, guiding budget planning and financial decision-making. It helps stakeholders understand the potential costs and allocate resources accordingly.

Examples of Use

• Construction Projects: Preparing cost estimates for labor, materials, and equipment needed to complete a building project.
• Renovations: Estimating the costs of upgrading or remodeling a property.
• Public Works: Developing budget estimates for infrastructure projects such as roads and bridges.

Related Terms

• Cost Estimation: The process of predicting the costs associated with a project.
• Budgeting: Planning the allocation of financial resources.
• Quote: A formal statement of the estimated cost for a specific job or service.

Notes

• Estimates should be as accurate as possible, considering all potential variables and contingencies.
• Regular updates and revisions to estimates may be necessary as project details and market conditions change.