Are you somewhere in the range of 30%, 60%, or 90% of your drawing plans? Or feeling frustrated
by preparing estimates with incomplete drawing plans? Maybe you need a quick preliminary
estimate to check if the project fits within your client's budget? Or are your suppliers
delaying their quotes? We can help!
At USA Estimating Solutions, we provide fast and detailed preliminary estimates with square
footage costs to analyze your project's feasibility and ensure smooth client interactions.
With over 5 years of experience in the AEC industry and a strong portfolio across commercial,
residential, private, and public projects, we deliver the most reliable and defensible
preliminary estimates. Our team leverages professional estimating software, along with our
proprietary databases, RS Means, and Craftsmen, to provide accurate cost analysis for both
finished projects and superstructures. Our location-based database and strong relationships with
local vendors ensure precise bill of material generation.
Contact us today and get 50% off on your first cost estimate!
A preliminary estimate (also known as a conceptual estimate) is a cost prediction made early in a construction project before detailed drawings or plans are created. Its purpose is to assess the economic feasibility of a project and ensure that it's financially viable before moving into the design and construction phases.
Preliminary estimates help key stakeholders, such as contractors, developers, homebuilders, and property owners, in the following ways:
Allocating Funds: Helps determine how much capital is required and where it should be allocated.
Setting Preliminary Budgets: Establishes an initial budget for the project based on early assumptions and high-level data.
Comparing Initial Design Alternatives: Helps compare different design options to decide which one is most cost-effective.
Since this estimate is produced early on, it relies on historical data from similar projects and general engineering concepts, adjusted for project size, time, and location.
Types of Preliminary Estimates:
There are several types of preliminary cost estimates that are employed at different stages in the project lifecycle. The accuracy of these estimates will depend on how much detailed information is available.
Rough Order Magnitude (ROM) Estimate:
Purpose: This is the first attempt to estimate costs and helps assess the feasibility of the project.
Accuracy: ±50% (from the actual cost).
Used for: Project selection and initial funding allocation.
Ballpark Estimate:
Purpose: Developed by contractors to help owners understand the scope of work and make decisions based on their budget.
Accuracy: ±20% of the actual cost.
Used for: Preliminary evaluations based on preliminary drawings or sketches.
Budget Estimate:
Purpose: Created using historical data from past projects, the budget estimate outlines the major costs for materials, labor, and other components.
Accuracy: ±10% to +25% of the actual cost.
Used for: Defining cost breakdowns as the project enters its planning stage.
Definitive Estimate:
Purpose: This is the most detailed and itemized estimate, based on fully developed project plans.
Accuracy: ±5% to +15% of the actual cost.
Used for: Finalizing cost before construction starts and obtaining accurate financial approval.
By using preliminary estimates, you can make informed decisions about your construction project early on, reducing financial risks and ensuring that your project stays within budget.
How Can Our Preliminary Estimate Benefit You?
Our preliminary estimates offer a range of advantages to help streamline your project and ensure better control over costs:
Budget Management and Financing: Helps you manage the budget effectively and determine the necessary funds for loan applications.
Set Cost Limits: Establish clear cost boundaries for architects and designers to guide the design process.
Material & Labor Costs: Provides an early estimate of the probable material and labor costs, allowing for better financial planning.
Next Phase Planning: Gives you insights into the project's next steps, helping you make more informed decisions about progress.
Contractor Negotiation: Helps you allocate funds and negotiate more effectively with contractors and subcontractors.
How Can You Quote a Preliminary Estimate to Your Clients?
Our preliminary estimates are based on floor area, making it easy for your clients and architects to understand and interpret the information.
Total area (square foot or square meter) of the project.
Linear measurements (foot or meter) for structures like walls, beams, etc.
Area breakdown for each unit such as rooms, floors, and other specific sections.
What Do You Get in Our Preliminary Estimate?
Our estimates include a comprehensive breakdown of quantities across the following key divisions:
Evaluation & Planning: Our estimators study the provided project information to assess the project scope and prepare an estimating plan.
Historical Data: We gather data from similar past projects, adjusting it to fit the current project’s specifications.
Adjustments: We adjust based on time, location, and project size, and include a contingency buffer to account for uncertainties.
Detailed Breakdown: All assumptions, adjustments, and specifications are detailed and included in the final estimate for transparency.
What Factors Contribute to the Accuracy of Our Preliminary Estimates?
Time Adjustments: Since these estimates are calculated well before the construction phase begins, we apply a time index that accounts for inflation, material costs, and labor rate changes over the years.
Location Adjustments: Material and labor costs vary across different regions. We adjust your estimate using a location index, comparing national averages to your project's specific region.
Size & Type Factors: We account for project size using a size factor that compares the proposed building area with typical building areas for the type of project.
Material Quality: The quality of materials (e.g., brick veneer vs. concrete block) plays a significant role in cost. We factor in quality differences to tailor the estimate.
Ready to Move Forward?
Contact us today for a detailed preliminary estimate to better plan and budget your project! You can also reach out to us for a quick quote to assess the economic feasibility before getting started.
