What is a Cost Estimate in construction?

A cost estimate in construction serves as an approximation of the costs required to complete a project. This estimation is fundamental for budgeting and financial planning, as it provides stakeholders with a forecast of what they should expect to spend. Cost estimates take into account a variety of factors, including labor, materials, equipment, and overhead costs.

This information is crucial for decision-making purposes in the early phases of a project, allowing project managers and clients to assess the feasibility and scope of the work, as well as to secure funding and allocate resources effectively. A well-prepared cost estimate helps ensure that projects are completed within budget and can also assist in competitive bidding by providing reliable data to compare different contractor proposals.

In contrast, the other options provide different types of financial information that do not specifically relate to the upfront planning and budgeting required for a construction project, making them less fitting in this context.