what is difference between cost estimating and cost budgeting
- Thread starter keerthi krishna
- Start date
Sudhakar Reddy B
Team member
Dear Keerthi Krishna
The terms cost estimate and budgeting both indicates the cost required for proposed project.
The major difference between estimate and budget is
Estimate- it indicates the proposed cost of the project it might change before commencing the work. The changes in the cost will happen because of any design changes, specification changes if any. It will be more or less than actual budget.
Budget- it indicates the cost of the proposed project after all design changes, specification changes if any. Once the budget was done that will be final proposed cost before commencing the work.
General procedure in the costing is they will follow first with priliminary estimate. They will check all the financial feasibility and loan related things with that estimate. Then they will check each item of the work which item item is consuming more cost of the project than as per standards. They will remove or do the changes in the design if any. They they will do final budget of the project.
I hope you got the answer to your quiery
The terms cost estimate and budgeting both indicates the cost required for proposed project.
The major difference between estimate and budget is
Estimate- it indicates the proposed cost of the project it might change before commencing the work. The changes in the cost will happen because of any design changes, specification changes if any. It will be more or less than actual budget.
Budget- it indicates the cost of the proposed project after all design changes, specification changes if any. Once the budget was done that will be final proposed cost before commencing the work.
General procedure in the costing is they will follow first with priliminary estimate. They will check all the financial feasibility and loan related things with that estimate. Then they will check each item of the work which item item is consuming more cost of the project than as per standards. They will remove or do the changes in the design if any. They they will do final budget of the project.
I hope you got the answer to your quiery
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