Definition of a construction cost estimate:
- An approximation of the monetary value for a repair, renovation, new construction, or related project or task at a specified point in time.
- An approximation of the monetary value of a project, task, or operation related to installation, repair, alternation of a physical structure and/or piece of equipment/physical component.
- A product of a defined cost estimating process that yields the intended level of detail for a project, task, and/or operation.
- A single total monetary value which generally has multiple associated and clearly defined identifiable component values, commonly known a detailed unit price line items.
Cost overruns due to errors and/or omissions can be avoided with a credible, reliable, and accurate cost estimate. A valid construction cost estimate is one that is verifiable, results from a combination of the experience of the estimator, and based upon locally researched line time unit prices and/or database.
An estimator is the professional who prepares cost estimates. There are different types of estimators, whose title may be preceded by a descriptive adjective, such as building estimator, or electrical estimator, or chief estimator. Other professional titles may also prepare estimates or contribute to estimates, such as quantity surveyors, cost engineers, project managers, etc.
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