When it comes to estimating the cost of building services, there are a variety of methods to use. A basic approach is known as order of magnitude. It is a rough estimate created at the beginning of a project based on experience and historic data. The next step in the estimation process is known as level two, intermediate design, schematic design, or preliminary design development. This is the earliest estimate of the project, and is usually good enough for budgeting purposes. In contrast, a level four estimate is refined after the development of construction documents and is used as a basis for a final cost estimate.
Level 1 estimate
A Level 1 estimate is a basic cost estimate that helps clients make budgetary and feasibility decisions. It usually includes historical information and costs per square foot. It may also include a schematic layout, intended use, and a general functional description. In addition, it may include a detailed description of a design.
A Level 1 estimate is typically the first estimate developed, and is also known as the order of magnitude estimate. It is created before a project is defined, and is based on the estimator’s judgment and experience. It is usually within a range of 25 percent to 75 percent. The next level up is known as a Level 2 estimate, and is a mid-range estimate that is used to determine the feasibility of a large project.
Class 1 estimates generally have the highest level of deterministic accuracy, and involve the most time and effort to prepare. They are generally prepared for specific areas of a project and for bid-preparation purposes. They also generally include unit cost line items based on actual design quantities. Nevertheless, Class 1 estimates may not include all of the items that should be included in the final estimate.
In the competitive bidding environment, the lowest bidder often wins, so an accurate estimate is essential. A well-prepared and thorough estimate increases the chances of being selected over other bidders. It also helps management monitor costs closely.
Level 5 estimate
The UniFormat(tm) estimating system helps design teams price alternative building assemblies and systems. It also includes engineering design criteria, equipment layouts, and outline specifications. This estimating system provides more accuracy and may be used in value engineering applications. It is a popular choice for estimating building services projects.
A Level 5 estimate for building services combines historical information and current costs to develop a comprehensive and accurate estimate of the costs of a project. It is a critical step in the bid process and is often used for budgetary and feasibility decisions. It also serves as the basis for evaluating subcontractor bids and change orders.
A Level 5 estimate is considered a definitive estimate and is based on available blueprints and plans and the cost of materials and labor. This type of estimate is typically five to ten times more detailed than a Level 1 estimate and requires between 50 and 200 hours of preparation. It is typically used by owners or contractors to evaluate bids and evaluate project progress.
The construction industry has a long history of using Level 5 estimates. These estimates are typically used to support the full cost of a project and serve as the first project budget until detailed estimates are prepared. To avoid wasting resources on an estimate that is inaccurate or inflated, the best practice is to compare it with the actual bid. This is not a Level 5 estimate, but it is a good practice in cost control, as this comparison exercise helps determine the real cost of a project and allows management to closely monitor it.
Level 6 estimate
The process of producing a Level 6 estimate for building services begins with determining the level of detail that is needed for the estimate. Once this is determined, the estimator will organize the elements of the estimate, such as the scope of work and methods of construction. He or she will then apply prices to these elements. After that, the estimator will format the estimate, coordinate peer review, and finalize it. The estimator may also summarize and compare budgets with those of other professionals to provide the best information possible.
The process of preparing a detailed estimate involves hundreds of hours of work that consists of gathering data, conducting engineering, and gathering information on the project. The ROM estimate is typically used as an initial screening project for capital expenditure planning. Providing detailed estimates for each project would be impossible without the extensive time and money required to collect and analyze project data. A class 5 estimate is often accepted for business plan projections and initial screening for capital projects, while a Level 6 estimate is used for more detailed projects.