1. Why this guide states no price
Three reasons, the same as the guide's price policy throughout. They concern scope and accuracy.
Published price references come from marketing material whose date and scope are not always clear. The price depends on the size of the project and the degree of detail, so a single figure misleads. And construction prices have changed in recent years, so an older reference no longer holds.
A wrong price expectation is worse than no price, because it leads to a wrong decision. The practical recommendation is the ordinary one: ask for quotations from two or three providers of construction measurement services, as with any other service.
2. What the price depends on
Four factors, and the second has the greatest effect. It is how far the design has advanced.
| Factor | Content |
|---|---|
| Size of the project | the size of the building and the number of items of work |
| Level of detail in the design | whether quantities can be read reliably from the drawings |
| Level of the result required | an estimate or a completable pricing form |
| Form of the drawings | whether they are machine-readable |
According to professional sources, a cost estimate is the more accurate the more accurate the design on which it is based, and to achieve the best result the designs should have been prepared at least to the extent of a detailed design in accordance with the relevant standard. A vague design gives a vague price.
3. Who pays for it today
Here is an observation that changes the whole discussion of cost. Preparing a budget is often included in the price.
According to professional sources, most construction companies do not charge the client for preparing a budget, and in the wording of the same source a great deal of time is therefore spent unproductively. The cost is carried within the tender.
The work of budgeting is therefore done in any case, only several times over and free of charge. It is not, however, free to anyone: the cost sits in company overheads and comes back in tender prices, as covered by the article on duplicated work. The question is therefore not whether budgeting is paid for. The question is how many times.
4. When it pays for itself
Four situations where the difference is clear, and the third concerns apartment associations. Comparability matters particularly there.
| Situation | Why |
|---|---|
| Several tenders are invited | a common basis makes them comparable |
| The project is long | variations are certain to arise |
| Funding is limited or loan-based | a justified figure is needed |
| Reconstruction | the uncertainty is greatest |
According to professional sources, an accurate budget helps an apartment association plan investments for renovating the building, and local authorities plan investments and cash flows. For an apartment association this is particularly relevant, since the investment decision has to be justified to the members.
5. When it does not pay
Two situations, and in the second one benefit still remains. It concerns tracking later on.
Where the volume of work is very small and the cost of a budget is disproportionate. And where the contractor has already been chosen and there is no competition, since one of the three benefits then disappears.
In the second case the benefit for pricing variations remains, so unit prices are still worth agreeing. Even without a full budget it is worth requiring unit prices, which is the cheapest single step in this whole guide.
Summary and four practical rules
This guide states no price for an estimating service, since references come from marketing material and the price depends on the size and detail of the project. The accuracy of an estimate depends on the accuracy of the design, and the best result presupposes a design prepared at least to the extent of a detailed design. Most construction companies charge nothing for preparing a budget, so the work is done several times over and its cost comes back in tender prices: the question is not whether it is paid for, but how many times.
Four rules: ask several providers for a quotation. Bear in mind that the accuracy of an estimate depends on the accuracy of the design. Treat budgeting as a cost already being paid rather than as a new one. Require unit prices even where you do not commission a full budget.
This article offers professional orientation as at the date of verification. It replaces neither a quotation nor the assessment of a competent specialist.