Estimate Cost for Each Element In Cost Plan

                       

                                                                                                                                                                        

In previous headings some features of a cost plan and steps in preparation of a cost plan have been discussed into some extent. Finally it is supposed to come up with an estimated cost for each element in the project. Before decide elemental cost of each element estimator has to finalize the total budget referring available information of the project at this very early stage. Then all the elements which are coming under this project should be listed out. Generally building project consists of around 33 elements.

The next step is identifying most significant elements within that project. This will differ with the scope of the project and purpose of the project. Based on that estimator has to allocate money for each element. This allocated amount of money consider as the target cost of the specific element. As an example this project being a housing construction in Kandy town area client may require good aesthetic appearance. Then estimator has to allocate considerable amount of money for finishes and external works comparing to rural area housing construction.

In this process estimator could be able to maintain overall quality of the project, available time period and estimated total budget. Because if there is big quality differences among elements it leads to failure of total cost plan.