Cost Estimate to Project Control
The cost estimate is recalculated as part of following up the project’s progress during execution. It may be obtained from the following information:
• Approximate budget
• The budget value after contract and before construction
• Estimated cost during construction
Both the owner and the contractor must have a baseline by which to control costs during project execution. The calculation of the detailed cost estimates is often used to determine an estimate of construction where the balance is sufficient to identify the elements of the entire project as a whole.
The contractor’s price, which was submitted by the tender with the time schedule, is determined by the estimated budget and used to control costs during the implementation of the project.
The estimated cost of the budget will be updated periodically during the execution of the project to follow-up the cash flows along the project time period in an appropriate manner.