Local estimates are one of the most important documents in construction

Local estimates are a type of reporting document, often necessary for construction, finishing and installation work. When planning the construction, you need to know exactly what amount of finance you will need to spend on doing certain types of work. For this purpose, there is an estimate documentation. Summary, objective 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, estimates covering the whole complex of works are called consolidated, and when compiling separate documentation for each stage (capital construction, interior finishing works, heating and sewerage installation, etc.), the estimate will be called object or local.

Currently, local budgets are far from a prerequisite for concluding work contracts. But as a rule, the customer requires the contractor to provide estimates for acquaintance. 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 compiling local estimates are:

• Projects for construction, working drawings;
• The scope of work reflected in the statement of work;
• Estimated standards and quotations for certain types of work;
• The name and quantity of equipment involved in the work and reflected in the working documents;
• Wholesale prices for furniture and equipment for the production of works;
• Current prices for transportation.

If during the construction process the previously identified types of work are identified, which is quite often, the contractor compiles 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 drawing up 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, the wages of workers and the costs of operating equipment used to produce work.

Overhead costs are expenses that are not directly related to the production of work, but create the necessary conditions. Their list includes: the maintenance of engineering, technical, administrative personnel; Subsidiary workers, watchmen of the construction site and much more. This includes the payment of holidays, social insurance of workers, compensation of idle equipment for reasons beyond the control of external factors. You can safely say: the shorter the construction time, the less will be the cost of overhead unforeseen expenses.

The estimated profit is made up of the funds necessary to replenish the budget of the organization, material encouragement of employees and payment of taxes.

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