Approximate estimate, also known as preliminary or rough estimate, helps to find out the approximate cost of a project in a very short time. Moreover, it enables the concerned authority to consider the financial aspect of the scheme to accord sanction to the same.
Preliminary investigation and preliminary surveying are enough to prepare this estimate. If required, subsoil investigations and tests to determine the safe bearing capacity may be conducted.
Detailed estimates require detailed surveying, design, and drawing, but not approximate estimates. A line sketch of the project is helpful when an approximate estimate is prepared. Records for similar works or practical knowledge helps in determining the rates used for approximate estimate.
The approximate estimate is accompanied with a brief report. This report states the following :
- The sources of the proposal
- Necessity or demand
- Provisions or accommodations made
- Viability
- Basis of the estimate
- Rates
- How the expenditure involved can be met
The report is accompanied by a line plan, site, or layout plan for an approximate estimate.
1. Importance of Approximate Estimate
An approximate estimate gives a basic or starting point estimate for any project. It is very important to have an accurate estimate though approximate. An approximate estimate helps the takers of the project to make a decision as to take up the project or not.
If the approximate estimate is too high, then the project manager would leave the project without preparing the detailed estimate. Work with detailed surveys, soil investigations, designs and drawings of a project start only when the approximate estimate is low. And when it is found that the detailed estimate is much higher than the approximate estimate then the project may be cancelled. This would result in loss of the entire labor, time, and expenses.
In conclusion, it is important for government or public bodies or even private owners to know the approximate estimate of the intended project for approval to undertake the project.
2. Purpose of an Approximate Estimate
An approximate estimate serves the following purposes:
2.1 Feasibility Investigation
An approximate estimate of a project gives an idea of the probable expenditure in a short time. This idea of expenditure ascertains the practicability or feasibility to take up the project based on the availability of the funds.
2.2 To Save Time and Money
It is a general practice to prepare a preliminary or approximate estimate before drawing up a detailed estimate for a project. As a result, we save time, money, and labor spent in preparing detailed drawings, specifications, and detailed estimates.
2.3 To Investigate Benefit and Comparison of Cost with Utility
The concerned authority draws up an approximate cost of the project and compares it with the income or benefits availed from expenditure. There may not be a paucity of funds but this helps the concerned authority to know readily whether the investment shall be ideal. A sanction to prepare the detailed estimate is given only when the preliminary estimate shows investment returns more than the investment.
2.4 To Make Planning Adjustments
For unavoidable projects, authorities work out approximate estimates for a number of alternatives for the original work after adjustment of sketch of the intention along with sketch reports for study. These approximate comparative estimates help the concerned authority to make a decision to select the sketch for the preparation of its detailed estimate.
2.5 To Obtain Administrative Approval
An approximate estimate with a brief report and layout plan has to be submitted to obtain administrative approval for government or public body projects. After receiving the administrative approval, the detailed investigation and detailed estimate is worked out.
2.6 For Insurance and Tax Schedule
The approximate estimate helps in drawing up the value of a property or project for insurance and tax schedules.
FAQs
Approximate estimate, also known as preliminary or rough estimate, helps to find out the approximate cost of a project in a very short time. Moreover, it enables the concerned authority to consider the financial aspect of the scheme to accord sanction to the same.
An approximate estimate gives a basic or starting point estimate for any project. It is very important to have an accurate estimate though approximate. An approximate estimate helps the takers of the project to make a decision to take up the project or not.
An approximate estimate serves the following purposes:
1. Feasibility investigation
2. To save time and money
3. To investigate benefit and comparison of cost with utility
4. To make planning adjustments
5. To obtain administrative approval
6. For Insurance and tax schedule
Read More
Construction Estimates – Definition, Purpose, and Types [PDF]
7 Tips to Prepare Accurate Construction Estimates [PDF]