---
title: "Purposes of estimating and costing"
subject: "Estimating and Costing"
chapter: 1
key: "semester_7/estimating_and_costing:purposes-of-estimating"
source: https://www.bctengineer.com/q/semester_7/estimating_and_costing/purposes-of-estimating
site: BCT Engineering
---

# Purposes of estimating and costing

Estimating and Costing · Chapter 1: Introduction

- Asked in: 2075 Asoj, 4 marks; 2074 Asoj, 4 marks; 2076 Chaitra, 3 marks; 2080 Bhadra, 2 marks (asked 4 times)
- Video: [3* ESTIMATING AND COSTING – MEANING / PURPOSE OF ESTIMATING AND COSTING](https://www.youtube.com/watch?v=R71_t4WG-Mo) — Civil Sarthi
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/estimating_and_costing/purposes-of-estimating
- Whole chapter: https://www.bctengineer.com/md/semester_7/estimating_and_costing/chapter-1

## Question

Mention the various purposes of estimating and costing.

## Short answer

The purposes of estimating are to determine probable cost, secure project approval and budget, serve as basis for tendering and bid comparison, plan materials, labour and equipment, schedule work, control costs, facilitate contract payments, and compare design alternatives.

## Answer

Estimating and costing means finding the quantities and the probable cost of work before it is done. Its main purposes are:

1. **Probable cost:** to know the total money needed, so the owner can decide on the project.
2. **Approval and budget:** administrative and financial sanction, and fund allocation, are given on the basis of the estimate.
3. **Tendering:** the engineer's estimate is the basis for inviting bids and for judging the reasonableness of the bids received.
4. **Material, labour and equipment planning:** quantities from the estimate give the materials to be ordered and the manpower and machines required.
5. **Time scheduling:** with the quantities and the productivity, the construction period and the programme are fixed.
6. **Cost control:** actual expenditure is compared with the estimate, so overspending is noticed in time.
7. **Contract payment:** the BOQ rates are used for interim payments and for valuing variations.
8. **Comparison of alternatives:** different designs or materials can be compared on cost.
9. **Loan and cash-flow planning:** banks and donors need a reliable cost figure.

## Check yourself

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

1. On what basis are administrative and financial sanction given?
   A. The final account
   B. The estimate
   C. The measurement book
   D. The contractor's bill
   Answer: B. Sanction and fund allocation rest on the estimate. (Key point: Approval and budget)

2. How does the estimate help fix the construction period?
   A. The total cost alone decides the period
   B. The VAT rate decides the period
   C. Quantities divided by productivity give the time and programme
   D. Time is taken from the contractor's bid only
   Answer: C. Quantities together with productivity give the construction period. (Key point: Time scheduling)

3. How does an estimate help in cost control?
   A. It prevents any variation from ever occurring
   B. It guarantees actual cost equals the estimate
   C. It is destroyed after tendering
   D. Actual expenditure is compared with it so overspending is noticed in time
   Answer: D. Comparing actual spending with the estimate reveals overspending early. (Key point: Cost control)

## Related in Estimating and Costing

- [Purposes of estimating; estimate never actual cost](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Apurposes-estimate-never-actual) — Estimating and Costing, chapter 1
- [Estimating and costing; principle of units](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Aestimating-costing-principle-units) — Estimating and Costing, chapter 1
- [Rate analysis: meaning, purposes, factors](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Arate-analysis-purposes-factors) — Estimating and Costing, chapter 4, asked 4×
- [Purposes of rate analysis](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Apurposes-of-rate-analysis) — Estimating and Costing, chapter 4
- [Estimating, purpose and data required](https://www.bctengineer.com/question.md?key=semester_7%2Festimating_and_costing%3Aestimating-purpose-data-required) — Estimating and Costing, chapter 1, asked 6×

## Related in other subjects

- [Estimating storm water quantity](https://www.bctengineer.com/question.md?key=semester_6%2Fsanitary_engineering%3Astorm-water-quantity-estimation) — Sanitary Engineering, chapter 2, asked 3×