Chapter 1: Introduction to Estimation and Costing
Abstract: Estimation and costing involve predicting project costs and resources, crucial for planning, budgeting, resource allocation, and managing risks, ultimately ensuring projects stay within budget and on schedule . Here's a more detailed breakdown: What it is: Estimation and costing are processes used to determine the quantities of materials, labor, and other resources required for a project, along with their associated costs. Why it's important: Planning and Budgeting: Cost estimates form the basis for project budgets, allowing for informed decision-making and resource allocation. Risk Management: Accurate cost estimates help identify potential cost overruns and risks early on, enabling proactive mitigation strategies. Tendering and Procurement: Cost estimates are used to prepare bids for projects and negotiate contracts with suppliers and contractors. Progress Tracking: Cost estimates serve as a benchma...