A cost estimate is predicted expenditure of a project which is generally prepared before the project is

taken up. It is prepared in different types based on the requirement of project.

The construction cost estimates can be prepared either in a detailed manner by taking into
consideration item by item or can be calculated approximately without going much into the details.
Based on these criterias, there are mainly 8 cost estimates followed in construction:

Preliminary Cost Estimate

Plinth Area Cost Estimate

Cube Rate Cost Estimate

Approximate Quantity Method Cost Estimate

Detailed Cost Estimate

Revised Cost Estimate

Supplementary Cost Estimate

Annual Repair Cost Estimate

1. Preliminary Cost Estimate

The preliminary cost estimate is also called an abstract cost estimate or approximate cost estimate or
budget estimate. This estimate is generally prepared in initial stages to know the approximate cost of
the project. By this estimate, the competent sanctioning authority can decide the financial position and
policy for the administration section.

Preliminary estimates are prepared with reference to the cost of similar type projects in a practical
manner. In this estimate, the approximate cost of each important item of work is displayed individually
to know the necessity and utility of each item of work. The items of work include the cost of lands, cost
of roads, electrification, water supply costs, cost of each building, etc.

2. Plinth Area Cost Estimate

Plinth area cost estimate is prepared on the basis of plinth area of building which is the area covered by
external dimensions of building at the floor level and plinth area rate of building which is the cost of
similar building with specifications in that locality.

Plinth area estimate is obtained by multiplying plinth area of building with plinth area rate. For example
if we require plinth area estimate of 100 sq.m in a particular locality and plinth area rate of a building in
same locality is 2000 per sq.m then plinth area estimate is 100 X 2000 = 200000.
Open areas, courtyards, etc. are not included in the plinth area. If the building is multi-storied, the plinth
area estimate is prepared separately for each floor level.

Also Read: Measurement of Plinth Area and Carpet Area of a Building

3. Cube Rate Cost Estimate

Cube rate cost estimate of a building is obtained by multiplying plinth area with the height of building.
Height of building should be considered from floor level to the top of the roof level. It is more suitable
for multi storied buildings.

This method of estimation is accurate than plinth area method. The rate per cubic meter is taken into
consideration based on the costs of similar type of buildings situated in that location. Foundation, plinth
and parapet above the roof level are not considered in this type of estimate.

4. Approximate Quantity Method Cost Estimate

In approximate quantity method cost estimate, the total wall length of the structure is measured and
this length is multiplied by the rate per running meter which gives the cost of the building. The rate per
running meter is calculated separately for the foundation and superstructure.

In case of foundation, rate per running meter is decided by considering quantities such as excavation
cost, brick work cost up to plinth. While in case of superstructure quantities like brickwork for wall,
wood works, floor finishing etc. are considered for deciding rate per running meter.

5. Detailed Cost Estimate

Detailed cost estimate is prepared when competent administrative authority approved the preliminary
estimates. This is very accurate type of estimate. Quantities of items of work are measured and the cost
of each item of work is calculated separately.

The rates of different items are provided according to the current workable rates and total estimated
cost is calculated. 3 to 5 % of estimated cost is added to this for contingencies as miscellaneous
expenditure.

The detailed Estimated should consist following details and documents.

Report

General Specifications

Detailed Specifications

Drawings/plans – layout plans, elevation, sectional views, detailed drawings etc.

Schedule of

6. Revised Cost Estimate

Revised cost estimate is a detailed estimate and it is prepared when the original sanctioned estimate
value is exceeded by 5% or more.

The increase may be due to sudden increase in cost of materials, cost of transportation etc. The reason
behind the revision of estimate should be mentioned on the last page of revised estimate.

7. Supplementary Cost

Supplementary cost estimate is a detailed estimate and it is prepared freshly when there is a
requirement of additional works during the progress of original work. The estimate sheet should consists
of cost of original estimate as well as the total cost of work including supplementary cost of work for
which sanction is required.

8. Annual Repair Cost Estimate

The annual repair cost estimate is also called as annual maintenance estimate which is prepared to
know the maintenance costs of the building which will keep the structure in safe condition.
Whitewashing, painting, minor repairs, etc. are taken into consideration while preparing annual repair
estimate for a building.

(i) Complete Set of Detailed Drawings:

In order to work out the quantities of various items of work, a complete set of detailed drawings
consisting of plan, elevation, sections and foundation details etc. is required.

The relevant dimensions i.e. length, breadth, depth or height of the items, whose quantities are to be
worked out, can be measured from such drawings.

(ii) Specifications of Items of Works:

The rate of an item depends upon the specifications of the work.

Specifications provide information regarding type of construction, quality of materials, proportion of

After the quantities of various items of work involved are calculated, they are to be multiplied by the
current market rates of those items.

The Government department such as Buildings and Communication, Irrigation and Power Department
prepares schedule of rates for all items of work pertaining to the department for a district or area, on
the basis of analysis of rates of items.

A booklet called ‘District Schedule of Rates’ (D.S.R) is available for sale in such Government
Organisations.

(iv) Standard Mode of Measurement:

I.S. 1200 has specified the procedure of measurement of various items of work, standard deductions to
made if any, the accuracy of measurement etc. and is to be followed while preparing estimates.

(v) Details of foundation strata likely to encounter.

(vi) The exact location of the work site.

(vii) The physical condition of the work site.