---
title: "Complete estimate: why and when"
subject: "Estimating and Costing"
chapter: 3
key: "semester_7/estimating_and_costing:complete-estimate-why-when"
source: https://www.bctengineer.com/q/semester_7/estimating_and_costing/complete-estimate-why-when
site: BCT Engineering
---

# Complete estimate: why and when

Estimating and Costing · Chapter 3: Types of Estimate

- Asked in: 2080 Baisakh, 2 marks
- Video: [Estimate and Type of Estimates | Miscellaneous Topics | GATE Construction Materials and Management](https://www.youtube.com/watch?v=6yasGWjsdHw) — Ekeeda GATE & ESE
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/estimating_and_costing/complete-estimate-why-when
- Whole chapter: https://www.bctengineer.com/md/semester_7/estimating_and_costing/chapter-3

## Question

Why and when is a complete estimate prepared/used?

## Short answer

A complete estimate includes all costs (land, building, services, furniture, design, contingency) to determine total financial commitment and avoid later supplementary demands. It is prepared at the project planning stage after detailed estimates, for large projects like hospitals or hostels, and when applying for loans or grants.

## Answer

A **complete estimate** gives the total cost of a project, covering every cost needed to make it ready for use: land, building (civil) works, services, furniture and equipment, design and supervision, contingency and taxes.

**Why it is prepared**
- To know the full financial commitment, not only the construction cost, so the owner or donor can sanction the money.
- To avoid supplementary demands later, because nothing important is left out.
- To compare the cost of the project with its benefit and to arrange the finance.

**When it is prepared**
- At the project planning and approval stage, after the detailed estimates of the individual works are ready.
- For large projects such as hospitals, hostels, dams and water supply schemes where land, equipment and external works are included.
- When a loan or a grant is requested.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Why is a complete estimate prepared?
   A. To pay the contractor monthly
   B. To know the full financial commitment, not only the construction cost
   C. To measure site work
   D. To reduce the design time
   Answer: B. It includes land, services, equipment and fees. (Key point: Why)

2. How does a complete estimate help avoid supplementary demands?
   A. It ignores external works
   B. It excludes taxes
   C. Nothing important is left out of the estimate
   D. It fixes the contractor rates
   Answer: C. All costs are included at the start. (Key point: Benefit)

3. When is a complete estimate prepared?
   A. After the project is complete
   B. Before any survey
   C. Only for repair works
   D. At planning and approval stage, after detailed estimates of individual works are ready
   Answer: D. It is also used for loan or grant requests. (Key point: When)

## Related in Estimating and Costing

- [Components of complete estimate; abstract cost](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Acomponents-complete-estimate-abstract) — Estimating and Costing, chapter 2
- [Types of estimates and when prepared](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Atypes-of-estimates-circumstances) — Estimating and Costing, chapter 3, asked 4×
- [Approximate estimate: what and when](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Aapproximate-estimate-when-needed) — Estimating and Costing, chapter 3, asked 6×
- [Revised estimate: when and why](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Arevised-estimate-when-needed) — Estimating and Costing, chapter 3, asked 3×

## Related in other subjects

- [Approaches to estimate pile capacity](https://www.bctengineer.com/question.md?key=semester_5%2Ffoundation_engineering%3Apile-capacity-approaches) — Foundation Engineering, chapter 8