What is the primary purpose of construction cost estimation?

The primary purpose of construction cost estimation is to predict the overall cost of a project to ensure it fits within budget constraints. This involves a thorough analysis of all potential expenses, including materials, labor, equipment, and overhead, which helps stakeholders make informed financial decisions. An accurate cost estimate is crucial for project planning and execution, as it helps to identify funding requirements, manage cash flow, and avoid budget overruns. By providing a detailed financial framework, cost estimation enables project managers to allocate resources effectively and make adjustments if unforeseen costs arise, thereby maintaining the financial health of the project throughout its lifecycle.