What is Cost Estimating?
Cost estimating (the art of approximating) is the possible amount of expenses required for an activity based on the information available at that time. Cost estimation and budgeting are among the most critical in project proposals and management.
Suppose thecost estimation is done inadvertently, resulting in an overestimation of costsat the tender stage. In that case, the company can lose to competitors offering lower prices with commensurate quality.
Conversely, the estimated cost is too low. In that case, we can win against competitors to get the project into the tender stage. Still, we will need help in the implementation stage.
When the project is in the conception stage, a cost estimate must be made to obtain an estimate of the project cost, which is feasible enough to participate in the tender.