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Installation cost ratio – In the industrial project, the equipment to be installed is known quite earlier to the details for their installation. In such situations, an estimate is prepared based on the ratio or percentage of the cost incurred as the installation cost. The organization generally maintains this type of data. Example- The cost of an equipment is Rs10,00,000, and its installation cost , including accessories is 50%. Thus the estimated cost is
10,00,000 + ( 0.5 x 10,00,000) = 15,00,000
We can consider the equipment in component wise and calculate the installation cost individually. This approach will require detailed information, but will be more accurate.
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Unit Parameter cost – In many of the projects, it is possible to obtain the cost of unit parameter of construction. These parameters may be unit area, unit volume, etc. This type or procedures are used in building construction. Residential apartment in our country are generally estimated using this method. There are different variations of the method. Some of them widely used are as follows - Residential buildings are generally estimated using this method.
Requirement for detailed estimate:
To calculate the detailed estimate, complete structural drawing of the facilities to be built up and specification of the items are necessary. We also need to know the rate of each of the items, which includes profit of the contractor. |