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Running head: Project cost estimation

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Project cost estimation
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Project cost estimation

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QUESTION 1
A construction cost estimate is a prediction of the amount of money that will be used in
executing a particular project, for instance, construction of a residential house. It is just an
approximation and therefore has uncertainties as market prices are ever varying. In estimating the
cost, price of the materials and labor payment rates are key in coming up with an accurate estimate.
It is expressed with a percentage accuracy, usually +/- %.

QUESTION 2
a) controlling expenditure
It monitors construction expenses as it gives boundaries of spending. A decent cost
estimate keeps the developer from losing cash and enables the client to abstain from overpaying.
It's a center segment of earned esteem administration, a task administration procedure that tracks
a venture's execution against the aggregate time and cost evaluate.
b) It enables planning and budget preparation
Project proprietors utilize cost estimates to decide a venture's scope and affordability...