- 2081 Baisakh · 3 marks
Compare estimated cost and actual cost
Short answer
Estimated cost is the probable cost forecast before construction based on drawings and rates, while actual cost is the exact expenditure recorded after completion. Estimated cost includes contingency and serves approval and tendering; actual cost is final, used for payment and cost records.
Compare estimated cost and actual cost.
| Basis | Estimated cost | Actual cost |
|---|---|---|
| Meaning | Probable cost calculated before the work | Cost really spent after completion |
| Time | Prepared before execution | Known during/after execution |
| Basis | Drawings, specifications, norms, prevailing rates | Bills, vouchers, measurement book, final account |
| Nature | Forecast, approximate | Fixed, final |
| Accuracy | Depends on data and judgement | Exact |
| Uses | Approval, budget, tender comparison | Payment, cost record, comparison with estimate |
| Variation | May be revised or supplemented | Cannot be changed |
| Includes | Contingency allowance | Contingency only if actually used |
The estimated cost is normally close to the actual cost only when the design is complete and the rates and site conditions do not change.
✓ Answer checked by Claude Opus 5.5 (high effort)
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