Construction Cost Estimating

How does this work?

1. Identifying Elements: The first step is to identify and list all the major elements involved in the construction project. This includes everything from the excavation, substructure, framework, walls and roofing to interior finishes, services and landscaping.
2. Measurement and Quantification: Each element is then measured and quantified based on the project’s plans, drawings and specifications. This involves determining the quantities of materials, labour and equipment.
3. Unit Cost Assignment: Once the quantities are determined, unit costs are assigned to each element based on historical data, market rates or quotes from subcontractors and suppliers. Unit costs may vary depending on factors such as location, project complexity, and market conditions.
4. Calculation of Costs: The cost for each element is calculated by multiplying the quantity by the unit cost.
5. Total Cost: Finally, the costs for all the individual elements are tallied to determine the total estimated cost of the project. This total cost estimate serves as the basis for budgeting, financial planning and decision-making throughout the project lifecycle

Elemental Cost Estimates offer several advantages:

• Detailed Breakdown: By breaking down the project into its fundamental elements, this provides a detailed breakdown of costs which allows for greater accuracy and transparency in budgeting and cost control.
• Better Cost Management: With costs estimated separately for each trade or element, project stakeholders can better manage costs by identifying areas where savings can be achieved or where costs may need to be adjusted.
• Improved Decision Making: Having a detailed understanding of the costs associated with each element allows project owners, architects and contractors to make informed decisions regarding design alternatives, materials selection, and construction methods.

Contact Quanto to find out how an Elemental Cost Estimate can assist in keeping your next project within budget and on time.

The financier uses the Financier Check Estimate report as part of their due diligence process to evaluate the project’s financial viability and determine the appropriate level of funding. It assists them in making informed decisions regarding loan approval and risk assessment.

Quanto cover the Newcastle & Greater Hunter region and are on a number of Australia’s major financial institutions panels for the production of these reports.

The financier will usually request a Quantity Surveyor’s report to certify that the amount the contractor is claiming payment for is fair and reasonable. Quanto would carry out a site inspection to assess the construction progress and verify that all work being claimed has been completed and fixed to site.

If there have been any changes to the scope of work, specifications, or contract terms since the last progress payment report, these changes are documented as Variations. This may include approved variations or additional work requested by the client, along with their corresponding impact on the contract price, program and Cost to Complete.

Progress payment reports play a crucial role in facilitating transparent and efficient payment processes in construction projects, ensuring that contractors are compensated fairly for the work completed, and developers and financiers have clarity into the project’s construction and financial progress.

Expert witness reporting in construction can be required in various types of legal proceedings, including but not limited to:

• Construction defects or failures
• Breach of contract claims
• Delay and disruption claims
• Cost overruns and disputes
• Building code violations
• Incomplete works

Quanto’s coverage for Expert Witness reports include Newcastle, Sydney and the Greater Hunter region.