Cost estimation before starting a project is as necessary for a business as air for us for living. Contractors and builders always used mechanical cost estimation for their projects before starting. It may be approximate cost estimate or budgeting cost estimates, bid cost estimates, quantity cost estimates, and control cost estimates and the detailed estimate.

However, all methods involve different style of estimation but the tips we provide in this article are better than those of others. Our construction estimates are useful for someone who estimates its cost by conventional ways.


This is the initial stage of cost estimation which must be designed while doing construction. In other words it is also called the abstract or hidden cost estimate or the approximate cost estimate or budgeting cost, because it is estimated on initial stage. We should not rely on the prefatory estimates because its consequences are worse than we expected.

Prefatory are the basic cost estimates to know the financial position of the project either company have those resources to fulfill the requirements attached to the project or not. These estimates are also used to design the policies before starting a project.


Ground level estimation or area wise estimation is used to calculate or estimate the cost which is directly spend on the covered area of the building.

Ground level estimate is obtained by multiplying lower ground area of building with its rate. For example if we require ground area estimate of 100 sq. meter in a particular locality and ground area rate of a building in same locality is 1000 per sq. meter then ground area estimate is 100 X 1000 = 100000.

However, open areas, courtyards, etc. are not included in the ground or plinth area. If the building is multi-storied, estimate is prepared separately for each floor level.


Cube rate cost estimate of a building is obtained by multiplying plinth area with the height of the building. Building’s height depends upon on its area it should be considered from ground to the top of the roof level. Which is more suitable for multi storied buildings.

This method of estimation is accurate than plinth area method.  The rate per cubic meter is taken into consideration based on the costs of similar type of buildings situated in that location. Foundation, plinth and walls above the roof level are not considered in this type of estimate.


Other cost estimation methods like detailed cost estimation, quantity estimation, control cost estimation are also useful to calculate the accurate type of estimate. Quantities of different items of work are measured accordingly and the cost of each item of work is calculated independently. The detailed estimates should include report, general specification, detailed specification and schedule rates. Around 3 to 5 % of estimated cost is added in this estimation for contingencies as miscellaneous expenditure.


These four tips helps any contractor, sub-contractor and engineer in its mechanical estimation of the cost. We provide you the best estimation from the grass root level, but reader should not rely completely on prefatory estimation and also start its estimation through ground level and also used the cube rate estimation method for complete analysis.

Leave a Reply

Your email address will not be published.

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed