Prime Cost and Provisional Sums items are those costs that cannot be accurately costed in the contract stage. So, Builders or Estimators just do their best guesses and calculate it as an allowance. It saves time in going to contract stage and writing the specification ..read more

Applying unit cost rates is a time-consuming process, but it's the most accurate method for estimating the costs of a project and is often the preferred method of estimators and builders ..read more

Waste is an unwanted product or material. Waste can be defined as a non-value-adding work. The term non-value-adding activity is used to differentiate between physical construction waste found on-site and other waste which occurs during the construction process ..read more

A WBS is a formal and systematic way of defining the scope of a project. The WBS is a tool that is used to breakdown the project into smaller manageable parts to aid in making large complex projects easier to manage ..read more

In most building contracts, the payment schedule is referred to ‘progress claims’. Milestone on the construction contract are time-related Payment Claims, and are implemented in the Contract for the builder to submit progress Payment Claims. Payments should only be made at those time nominated in the contract ..read more

Cost estimating is the process of calculating the costs involved to deliver the project—an approximation of costs likely to be incurred. Accuracy is dependent on the information available. Cost estimating depends on many elements, including labour, materials, financial expenses and other allowances ..read more