The builder contacted Accent Estimating after winning a project and being unsure on the costings. They requested the preparation of a preliminary budget so they could compare it with their costs and determine whether they are building for profit or loss.
Preliminary budgets are for those who want an indication on price but aren’t ready to invest in a detailed cost estimate. We prepare this for many clients on the proviso that they understand it is +/- 10%.
The project was due to commence in a week’s time, so the deadline for this budget was around three days. We reviewed the plans and applied our rates on what is a standard cost, based on the architectural design +/- 10%.
The project was an architecturally-designed two-level new build with a basement, car turntable and pool, solid brick walls and architectural joinery. The documentation came fully specified, including structural and hydraulics engineer documentation.
We prepared a preliminary budget, which came in 10% higher than the builder’s tender submission. However, we advised the builder that the budget was +/- 10% – so this result added some contingency for the preliminary estimates. The builder was satisfied and believed he could commence the project as it was deemed viable, based on this budget.