• Everyone has a dream to become an owner of the new modern house. 😃 But  significant persons face the major problem         is " how much money  they want to expense for it”😕😕                                  


Today we can see there are plenty of uncompleted houses due to the cash flow issues. Those can be categorized as follows.

 a) Designed a house without understanding the total cost of the   project.

 b) Significant understanding about construction cost, but the       economical background is not stable to complete it.

Sometimes you may have sufficient money to complete the modern house, but if you don't have understanding about the total budget, end of the day you will disappoint about the project and entire construction.😂 Some people may argue that it is better to hand over the construction activities to a construction company, because the company may complete it within a given budget. But in my opinion, client should have an independent idea and understanding about the total project cost without depending on a third party or trusting contractors. 👈

   

What is the preliminary estimate? Why is it important to the stakeholders .(Owners / Client ..... Like you) 😏😏

There are lots of definitions to preliminary estimate, but simply it can be illustrated that '' It is a process of finding the total budget of the project in the conceptual design stage." Only one thing you need to have an idea about the budget, it is an Architectural layout plan then you can take approximate figure of the budget. thus you may have doubt that, construction material and other resources are increasing day by day and how it affects to the accuracy of the budgeted figures. (The process of preparing the preliminary estimate will discuss in the next article soon... ) 👍

In this article, we focus on the public, who expect to build a new house, but I hope that this will help the contractors, consultants, and other stakeholders who involved in a broad range of construction projects. So I will explain the logical reasons at the end of the article.👇

According to your concept, architecture will prepare a layout plan. Think you have X Amount in your hand and you are able to take bank loan Y amount, in total of X+Y amount able to invest in your project (House construction). How do you know whether XY amount is enough to complete the project? So in this situation, the preliminary cost estimate is one of the best solutions to settle this issue. Think about the above layout plan’s preliminary cost estimate amount is Z.

If, X + Y > Z / X + Y = Z

you can implement the designed architectural plan and develop it without any doubt.👏

If, X + Y < Z

you can negotiate with the architect to revise the layout within budget or find external financial resources to recover (X+Y-Z) amount. 👊

if you advise your architect or designers to complete the given design without considering the cost of the project, you will not be able to finish it in entire life. I believe that now you can understand the main objective of the above estimate.😍😉

The other advantages are as follows,✌

The construction company or contractor can't mislead you when dealing with price negotiation. Furthermore, you can check randomly the accuracy of the BOQ (Bill of Quantities) with the preliminary estimate.

Preliminary estimate and a broad range of construction projects.

There are plenty of projects all around the world is going on design and build method. it means that the construction company carries out the project with the internal design team or hires external resources. The design team prepares a sketch for the client's requirement but once they prepare BOQ, the client’s budget is not enough to achieve the designed project, then the design and BOQ both need to be revised. Therefore to minimize the time-wasting and money, the preliminary estimate can be used as a solution for the above issues.👌