What is one major type of cost estimation?

Preliminary cost estimation plays a crucial role in the early stages of a construction project. This type of estimation serves as a rough forecast of the potential costs associated with a project before detailed plans and specifications are available. It allows project stakeholders, including owners and developers, to gauge the feasibility of a project and make informed decisions regarding budgets and funding.

Preliminary cost estimates are typically based on historical data, analogous projects, or a rudimentary quantity takeoff. The goal here is to provide a ballpark figure that captures all major cost components without delving into the intricacies of how the project will be executed. This form of estimation is particularly valuable during the planning and conceptual stages, enabling quick assessments and guiding further design and development efforts.

Full comprehension of this process can help emphasize its importance in ensuring the project's financial viability and preparing for more detailed and accurate cost estimations as the project progresses toward completion.