What is the purpose of project estimation?

The purpose of project estimation is to calculate the expected costs and resources needed for a project. This process is crucial in the construction industry as it allows project managers and stakeholders to develop a budget, allocate resources effectively, and set realistic timelines for project completion. By accurately estimating costs and resources, teams can ensure that they are financially prepared and have the necessary materials and manpower to meet the project's requirements.

In project estimation, various factors such as labor, materials, equipment, and time are considered to create a comprehensive plan that guides the project's execution. This not only helps in identifying potential financial risks but also aids in making informed decisions throughout the project's lifecycle. Accurate estimation is foundational for successful project management and ultimately contributes to the overall efficiency and profitability of the construction project.