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Consequences of Preliminary Estimating Services

Preliminary estimating services are a series of operations performed early in developing a construction project to create an initial cost estimate based on limited project information. The project stakeholders, including owners, designers, contractors, and financiers, use this estimate as a basis for decision-making and planning.

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Consequences of Preliminary Estimating Services

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  1. Consequences of Preliminary Estimating Services Preliminary estimating services are a series of operations performed early in developing a construction project to create an initial cost estimate based on limited project information. The project stakeholders, including owners, designers, contractors, and financiers, use this estimate as a basis for decision-making and planning. The preliminary estimating services typically involve site visits, reviewing project drawings and specifications, analyzing project scope, identifying major cost drivers, determining construction methods, evaluating potential construction risks, and developing cost models. The accuracy of the preliminary cost estimate depends on the quality of information available and the expertise of the estimator. Consequences of Preliminary Service Checking Preliminary estimate services are an essential component of every construction project since they serve as the foundation for decision-making, planning, and budgeting. Therefore, the preliminary estimate's accuracy can have far-reaching repercussions throughout the project's lifespan. Any inaccuracies or oversights at this point can

  2. lead to costly delays, disagreements, or even project failure. One of the primary consequences of inaccurate preliminary estimating services is budget overruns. If the preliminary estimate is significantly underestimated, the project may run out of funds before completion, leading to delays, stoppages, or even project abandonment. Conversely, if the preliminary estimate is overestimated, it may result in excess funds being allocated to the project, leading to inefficiencies and waste. Inaccurate budget estimate services can also cause disagreements among project stakeholders. If the owner

  3. or financier believes that the estimate was intentionally or negligently understated, they may seek legal redress from the contractor or estimator. Similarly, if the contractor considers that the estimate was unduly cautious or based on incorrect assumptions, they may attempt to renegotiate the contract or discontinue the project.

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