What is a feasibility estimate?
A high level exercise to assess whether a project is financially viable and to set an outline budget for the scheme.
What is the format of a feasibility / budget estimate?
- Rate per m2 or per functional unit
- May be presented as a range
What is a functional unit?
The ‘factors which express the intended use of the building better than any other’ i.e. number of bedrooms in a hotel, number of beds in a hospital
What information do you need to be able to carry out a feasibility estimate?
- Type of building (function)
- New build or extension
- Indication of quality
- Site visit
What is the % error on a feasibility estimate?
What is a cost estimate?
A forecast of the possible cost of a building based on historical data.
What are the principal components of a cost estimate?
- Construction cost
- Contractor’s overhead and profit
- Assumptions – programme
- Area Schedule
- Basis of Estimate – drawings / specifications list