Understanding Construction Quantity Takeoff and Cost Estimation! Construction Cost Info.
Understanding Architectural Cost Estimation and Calculating Construction Cost Estimates
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We are Serim Construction Co., Ltd., a construction company specializing in architecture and civil engineering.
Today, we will discuss the process from architectural cost estimation to construction cost estimation, as well as the calculation of construction costs.
We will explain the process of calculating construction costs and the key points for preparing a construction cost estimate.
Please pay close attention, as reading to the end will help you gain a good understanding of construction costs.
The construction cost estimation process can be broadly divided into two stages. The first stage is the architectural cost estimation process, and the second stage can be summarized as calculating the construction cost amount by applying unit prices to the estimated details.
Let's look at the first step: architectural cost estimation.
What is Architectural Cost Estimation?
Cost estimation refers to calculating the quantity of goods required for every stage of construction. Here, "goods" refer to materials, labor, and expenses. In other words, cost estimation is the calculation of the quantities of materials, labor, and expenses required for construction.
By what criteria are quantities calculated for construction cost estimation?
The quantities of materials are calculated based on design documents and specifications. While the quantity of some items is indicated on the architectural drawings, for most, the quantity is determined by arithmetic based on the numerical values, specifications, and quantities on the drawings. The calculation of the estimated quantity is completed by applying a markup rate to the actual quantity calculated in this way.
Construction cost estimation is then conducted based on these calculated estimated quantities.
Now, let's look at the second step: calculating the estimated amount by applying costs to the estimated quantities.
What is a construction cost estimate?
A construction cost estimate is the process of calculating the total construction cost by reflecting unit prices for materials, labor, and expenses in the previously calculated estimated quantities, and adding up direct construction costs, indirect construction costs, other expenses, various utilities, various management fees, and corporate profit.
In other words, the estimated amount for construction is the sum of the net construction cost, management fees, and corporate profit.
Serim Construction Co., Ltd., specializing in the construction of factories, warehouses, and commercial facilities, offers reasonable construction costs based on reliable cost estimation. If you are planning to construct any type of building, please seek the assistance of Serim Construction Co., Ltd. We provide practical help to building owners by presenting transparent price estimates.