Cost, the overall construction budget, is an item of discussion for any construction project. In general, with every project the owner will ask, "what do you think it will cost?" An owner, prior to moving forward on a project, will request a ballpark estimate for the project. What estimate for a final dollar amount, would you provide for each of the following projects:
- A 2,500 sq. ft., two-story, residential house
- A 1,500 sq. ft., commercial tenant build-out that is currently a vanilla-shell structure
- A 12,000 sq. ft., new, single-level commercial office complex
In your discussion response, give your estimate for each project, and then answer the following questions:
- How was your ballpark estimate developed?
- What disclaimers, if any, would you give to the project owner regarding the estimates for each project?
- Is this a valid estimate to provide to the owner at this stage of the project?