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Project estimate: preparation and reports

Short answer

A project estimate is the calculated cost from quantities, rates and other charges. Reports are the preliminary report, detailed estimate report, revised report for changed or exceeded estimates, supplementary report for extra work, and completion report comparing actual cost.

What do you mean by Project estimate? How do you prepare a project estimate? State the reports on estimate.

Project estimate

A project estimate is the calculated cost of completing a project, found from the quantities of all works, their rates and the other charges. It is used to get approval, fix the budget and decide the tender price.

Preparing a project estimate

  1. Study the project needs and collect the survey, design, drawings and specifications.
  2. Prepare a preliminary (approximate) estimate to check feasibility.
  3. Take out quantities of all items from the drawings.
  4. Analyse rates using norms and District Rates.
  5. Calculate the cost of each item (quantity × rate) and prepare the abstract of cost.
  6. Add contingency (about 5%), supervision, price escalation and VAT 13%.
  7. Write the report and send it for approval.

Reports on estimate

  1. Preliminary report - the need and feasibility of the project with a rough cost.
  2. Detailed estimate report - quantities, rate analysis, specification, drawings and abstract of cost.
  3. Revised report - when the estimate is exceeded by more than a permissible limit or the plan is changed.
  4. Supplementary report - for additional work not in the original estimate.
  5. Completion report - after completion, comparing actual cost with the estimate.

✓ Answer checked by Claude Opus 5.5 (high effort)

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