L1 - Preliminary Estimates

1. FIXED COST

2. TIME-RELATED COST

3. QUANTITY-PROPORTIONAL COST

TYPES OF CONSTRUCTION COST

Fixed Cost

This is defined as the cost spent once for a particular point of time. The purchase of equipment, machinery etc. comes under fixed cost assets.

Time-Related Cost

is the cost spend for a particular activity for a given duration. The cost spent on wages, equipment and building rents etc comes under this category.

Quantity-Proportional Cost

This type of cost will vary based on the quantities. Materials costs are examples of quantity-proportional costs

Direct Costs

The costs and expenses that are accountable directly on a facility, function or product are called as

Indirect Costs

is not directly accountable for a particular facility, product or function.

Project Overhead Costs

In a construction project, the cost of some of the items cannot be directly allocated for a specific activity. Most of the site related costs come under this section and are categorized

General Overhead Costs

cannot be directly charged for a specific project. These form the costs that are used to support the overall activities of the company.

Unit Price Contract

the work to be performed is broken into various parts, usually by construction trade. This contract type is based on anticipated quantities of items that are counted in the project in addition to their unit prices.

Lump Sum Contract

also known as a stipulated sum contract, the project owner provides explicit specifications for the work, and the contractor provides a fixed price for the project.

Cost-plus Contracts

are similar to lump sum contracts in that the owner agrees to pay the contractor’s costs, including labor, subcontractors, equipment and materials and an amount for the contractor’s profit and overhead. But instead of a lump sum to cover all the expenses, those costs are reimbursed individually.

cost-plus-fixed-fee contract

where the contractor is paid a base amount independent of the final project cost

cost-plus fixed fee with a guaranteed maximum price contract

where the contractor’s compensation is based on a fixed amount that does not exceed a specific threshold

cost-plus fixed percentage contract

where the contractor’s compensation is based on a percentage of the cost.

Cost Estimating

is employed as one of the main tools of successful Cost Management throughout a project's planning, design, construction, and operations and maintenance phases.

MASTER FORMAT

Provides Work Breakdown Structure into materials based divisional categories and is widely used within the design and construction industry when estimating for construction document design phases, as it aligns well with master format specification sections.

UNIFORMAT

Represents Work Breakdown Structure costs according to hierarchy of system elements. It is an arrangement of construction information based on physical parts of a facility called systems and assemblies.