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Estimating Construction Costs 6th Edition PDF Form

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cost estimating is the process of accurately calculating the cost of a project this can be done either using the top down or bottom-up approach using the top-down approach we estimate project costs by looking at the cost of other similar projects for example if building a solar farm of the same size and type previously cost us 20 million dollars we can estimate that the cost of this project will also be 20 million dollars using the bottom-up approach we estimate project costs by individually calculating the cost of every activity required to complete the project for our direct costs we break the project scope down into individual activities then look at the individual labor plant material and subcontract costs for each we then work out our indirect costs which are our management staff and site running costs we add these together add-on profit and corporate overheads to get our total project costs

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