# Estimation and Costing

**What is Estimation and
Costing?**

Estimating and Costing are the same things. An estimate is defined
as the process of calculating or computing the various quantities and the
expected cost spend on a particular work or project.

The main objective of an estimate is to enable one to know the
probable cost of the work before the completion of the project. If the estimate
is prepared carefully and correctly there will not be much difference between
estimated and actual cost.

**Importance Estimation and
Costing**

- It is necessary for
fixing the budget for the purposed project
- It helps for calculating
the required quantities of materials and laborers for the project
- It is required to draw
up a work schedule
- It is also helpful to
check the works done by contractors during and after the execution
- It is required for preparing
tenders for the project
- It is necessary for the valuation of land and building

**Estimation and
Costing Requirement**

- To estimate the probable
cost of the work
- To find the various
types and quantities of material required
- To find the various
categories and quantities of labor required
- To give an idea of the
time required for the completion of the work
- To help in fixation of
standard rent and valuation of a project

**Methods of
Estimation**

- Centerline method
- Crossing Method
- Out to Out and Into In (Longwall
and short wall) Method
- Bay Method

**Types of
Estimation**

- Preliminary or rough estimate
- Plinth area estimate
- Unit rate estimate
- Cube rate estimate
- Item rate estimate
- Detailed estimate
- Revised estimate
- Supplementary estimate
- Annual repair estimate
and annual maintenance estimate

**Conclusion**

Hence estimation and costing help to work out the approximate cost
of the project to decide its feasibility concerning the cost and to ensure the
financial resources.

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