Local estimates are one of the most important documents in construction

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Local estimates are a type of reporting document, often necessary for construction, finishing and installation work. When planning construction, you should know exactly how much finance will need to be spent on the performance of certain types of work. That's what documentation is for. Summary, object or local estimates are those documents that allow you to optimally plan and analyze the costs of both the contractor and the customer.

Estimates - what are they?

Estimates differ in their purpose. So, for example, an estimate covering the entire range of works is called a summary, and when drawing up separate documentation for each stage (capital construction, interior finishing work, installation of heating and sewerage, etc.), the estimate will be called object or local.

Currently, local estimates are far from being a mandatory condition when concluding contracts for the performance of work. But as a rule, the customer requires the contractorproviding estimates for review. After all, no one wants to overpay extra money in the absence of information about what exactly finances are spent on.

Rules for drawing up local estimates

The grounds for drawing up local estimates are:

• construction projects, working drawings;
• quantities reported in bills of quantities;
• estimated standards and prices for certain types of work;
• name and quantity of equipment involved in the work and reflected in the working documents;
• wholesale prices for furniture and work equipment;
• current prices for transport work.

If during the construction process, previously unforeseen types of work are identified, which happens quite often, then the contractor draws up an additional local estimate. An example of such an estimate can be found in the accounting department.

How to take into account the cost of work when making an estimate?

The cost of construction and installation works consists of three main things:

1. Direct costs.
2. Overheads.
3. Estimated profit.

Direct costs are made up of the cost of building materials, wages of workers and the cost of operating the equipment used to produce the work.

Overhead costs are expenses that are not directly related to the production of work, but create the necessary conditions. Their list includes: maintenance of engineering, technical, administrative personnel; auxiliary workers,construction site watchmen and much more. This also includes payment for vacations, social insurance of workers, compensation for equipment downtime due to reasons independent of external factors. We can safely say: the shorter the construction time, the lower the cost of overhead contingencies.

Estimated profit consists of the funds needed to replenish the budget of the organization, material incentives for employees and pay taxes.

Local estimates are always the maximum of attention, responsibility, knowledge of regulatory documents, the ability to correctly read project documentation. Sometimes only a specialist can do this. Therefore, it is best to entrust the preparation of local estimates to professionals.