Cost Estimation & Bank Reporting

Cost estimation serves as an accurate prediction of the total costs of a building project. Construction estimating is a process of calculating all essential construction cost, including the material, labour, equipment and all other cost directly associated with the project. Building estimation is essential when creating building quotes, and defining an accurate project budget.

Bank reporting in construction involves providing developers, lenders, and other stakeholders with accurate financial reports that track the progress and financial status of a project. These reports typically cover project milestones, budget tracking, risk assessment, and financial health, ensuring all parties are informed and can make decisions based on up-to-date financial data.

Bank reporting is crucial for ensuring that both developers and lenders have a clear understanding of a project’s financial status. It helps to track the expenditure, identify potential risks, and provides early warning signs of financial issues. This transparency helps prevent delays, financial mismanagement, and ensures that the project stays on budget. It also fosters trust between developers, financiers, and other stakeholders.

Working with experienced professionals for both cost estimation and bank reporting can provide a range of benefits, including:

• Accurate Financial Planning – Ensures your project is financially viable and keeps expenditures in check.
• Reduced Financial Risk – By identifying potential risks early, you can take proactive steps to manage them.
• Improved Decision-Making – Both cost estimates and bank reports provide you with the necessary data to make informed decisions at every stage of the project.
• Streamlined Reporting – Bank reports and cost estimates help you stay on top of your budget, track progress, and ensure that financials are aligned with your goals.

Generally, construction estimation includes estimating the following cost:

• Material cost – an estimation of all essential materials for the building project, such as bricks, cement, wood, mortar, etc.
• Labour cost – a complete estimation of labour force needed to complete the project
• Equipment cost – an estimation of heavy machinery and other equipment cost needed for the project
• Other costs (overheads) – estimation of all other cost that are tied to the project, but cannot be counted as direct project cost. Examples: rentals, permits, subcontractors, fines, etc.

Construction estimating works in three key phases:

• Pre-estimate phase: Identifying procurement terms, creating a procurement plan, selecting relevant parties (suppliers, consultants, subcontractors), and reviewing tender documentation.
• Estimate phase: Conducting a quantity take-off, using Bill of Quantities (BOQ) to create procurement lists, reviewing procurement responses, calculating costs, and finalising the estimate for client review.
• Post-estimate phase: Comparing estimated costs to actual costs, reviewing project budgets and invoices, and conducting post-contract reviews to improve future estimating practices.

Cost estimating by a quantity surveyor ensures that construction projects stay within budget, minimise financial risk, and are completed efficiently. A quantity surveyor helps manage all costs associated with a project, from initial estimates to final invoicing, ensuring that every cost element is accurately accounted for and monitored throughout the construction process.

The biggest benefit of cost estimating is providing a clear, structured framework for managing a project’s budget. It helps in forecasting all potential costs, mitigating risks, and ensuring that the project is completed on time and within financial constraints. It also enables better decision-making, ensuring value for money and reducing the likelihood of costly project overruns.

At Property & Building Assessments, based in Sydney, Australia, we specialise in providing comprehensive building assessments for residential and commercial property owners and investors. With over 30 years of experience, our team of qualified estimators and consultants uses advanced technology to deliver accurate and reliable assessments, ensuring you can make informed decisions about your construction projects. We’ve been a trusted partner for construction companies across Sydney and NSW for over three decades.

Homeowners: Building estimation services help homeowners understand costs for construction, renovations, extensions, or repairs. These services assist with better budget planning, cost savings, contractor cost estimation, reducing cost overruns, and making informed decisions.

Builders/Contractors: Estimates help builders with planning, budget management, creating competitive bids, identifying cost-saving opportunities, and improving the accuracy of initial cost estimates.

Material Suppliers: Estimating services aid material suppliers with supply chain management, improve bidding and pricing, and increase estimate accuracy amidst fluctuating material costs.