Preliminary Estimate
Are you struggling to estimate costs while your drawings are only partially completed? Or perhaps you’re working with incomplete plans and finding it difficult to move forward? Maybe you need a fast preliminary estimate to ensure your project aligns with your client’s budget, or you’re facing delays from suppliers in getting accurate pricing.
At ACON Engineering, we specialize in providing quick, detailed preliminary estimates based on square footage costs. This allows you to assess the viability of your project and make informed decisions, even when plans are still in development. We help you keep the project on track and within budget, offering you the flexibility and accuracy you need to move forward with confidence.
What is a preliminary estimate and how it helps?
A preliminary estimate or conceptual estimate is a valuable tool used to predict the project cost and assess the economic feasibility of a construction project before detailed plans are developed. It plays a crucial role for contractors, real estate developers, home builders, and property owners in making key decisions such as fund allocation, setting initial budgets, and evaluating different design options.
Since preliminary cost estimates are made early in the project, before the final design and construction phases, they rely heavily on historical data from similar projects, adjusted for factors such as time, location, and project size. These estimates are based on engineering principles and offer a high-level projection of costs.
There are various types of preliminary cost estimates used at different stages of a project’s lifecycle. The accuracy of these estimates typically depends on the quality and extent of information provided by the client, and they become more refined as the project progresses.
Rough Order Magnitude Estimate
The first attempt to estimate in a project’s lifecycle is known as a Rough Order of Magnitude (ROM) estimate. This early-stage estimate is used to assess the feasibility of a project, helping to determine whether it should move forward and how resources should be allocated. ROM estimates are typically based on limited information and are intended to provide a high-level cost projection. The accuracy of a ROM estimate generally falls within the range of -50% to +50%, meaning the actual costs could be 50% higher or lower than the initial estimate.
Budget Estimate
The budget estimate is developed during the planning stage of a project, utilizing data and plans from similar past projects. It provides a more detailed breakdown of the costs associated with major project components, including both materials and labor. This estimate helps define the overall financial scope of the project. The accuracy of a budget estimate typically falls within the range of -10% to +25% of the actual final cost, offering a more refined projection than a Rough Order of Magnitude (ROM) estimate but still allowing for some level of fluctuation as the project progresses.
Ballpark Estimate
A ballpark estimate is created by contractors to provide clients with an initial cost range, helping owners make informed decisions based on their budget. This estimate is typically derived from preliminary drawings and specifications, offering a broad financial overview of the project. The accuracy of a ballpark estimate generally falls within ±20% of the actual final cost, making it a useful tool for early-stage budget planning and scope definition.
Definitive Estimate
A definitive estimate, also referred to as a digital cost estimate, provides a detailed, itemized breakdown of all components involved in a project. It is prepared using fully developed project plans and is considered highly accurate. The accuracy of a definitive estimate typically ranges from -5% to +15% of the actual cost, making it one of the most precise estimates available during the project lifecycle.
Please take a look and let us know if you have any questions/concerns.
Preliminary Estimate
Are you struggling to estimate costs while your drawings are only partially completed? Or perhaps you’re working with incomplete plans and finding it difficult to move forward? Maybe you need a fast preliminary estimate to ensure your project aligns with your client’s budget, or you’re facing delays from suppliers in getting accurate pricing.
At ACON Engineering, we specialize in providing quick, detailed preliminary estimates based on square footage costs. This allows you to assess the viability of your project and make informed decisions, even when plans are still in development. We help you keep the project on track and within budget, offering you the flexibility and accuracy you need to move forward with confidence.
What is a preliminary estimate and how it helps?
A preliminary estimate or conceptual estimate is a valuable tool used to predict the project cost and assess the economic feasibility of a construction project before detailed plans are developed. It plays a crucial role for contractors, real estate developers, home builders, and property owners in making key decisions such as fund allocation, setting initial budgets, and evaluating different design options.
Since preliminary cost estimates are made early in the project, before the final design and construction phases, they rely heavily on historical data from similar projects, adjusted for factors such as time, location, and project size. These estimates are based on engineering principles and offer a high-level projection of costs.
There are various types of preliminary cost estimates used at different stages of a project’s lifecycle. The accuracy of these estimates typically depends on the quality and extent of information provided by the client, and they become more refined as the project progresses.
Rough Order Magnitude Estimate
The first attempt to estimate in a project’s lifecycle is known as a Rough Order of Magnitude (ROM) estimate. This early-stage estimate is used to assess the feasibility of a project, helping to determine whether it should move forward and how resources should be allocated. ROM estimates are typically based on limited information and are intended to provide a high-level cost projection. The accuracy of a ROM estimate generally falls within the range of -50% to +50%, meaning the actual costs could be 50% higher or lower than the initial estimate.
Budget Estimate
The budget estimate is developed during the planning stage of a project, utilizing data and plans from similar past projects. It provides a more detailed breakdown of the costs associated with major project components, including both materials and labor. This estimate helps define the overall financial scope of the project. The accuracy of a budget estimate typically falls within the range of -10% to +25% of the actual final cost, offering a more refined projection than a Rough Order of Magnitude (ROM) estimate but still allowing for some level of fluctuation as the project progresses.
Ballpark Estimate
A ballpark estimate is created by contractors to provide clients with an initial cost range, helping owners make informed decisions based on their budget. This estimate is typically derived from preliminary drawings and specifications, offering a broad financial overview of the project. The accuracy of a ballpark estimate generally falls within ±20% of the actual final cost, making it a useful tool for early-stage budget planning and scope definition.
Definitive Estimate
A definitive estimate, also referred to as a digital cost estimate, provides a detailed, itemized breakdown of all components involved in a project. It is prepared using fully developed project plans and is considered highly accurate. The accuracy of a definitive estimate typically ranges from -5% to +15% of the actual cost, making it one of the most precise estimates available during the project lifecycle.
Please take a look and let us know if you have any questions/concerns.
WORKING WITH US WE ARE A GLOBAL NETWORK OF CONSTRUCTION COST EXPERTS
ACON Engineering
ACON Engineering ® is a leading cost estimation consultancy providing accurate and detailed construction estimates. Serving both public and private sectors across the U.S., we help clients manage project budgets effectively.
ACON Engineering
ACON Engineering ® is a leading cost estimation consultancy providing accurate and detailed construction estimates. Serving both public and private sectors across the U.S., we help clients manage project budgets effectively.