COURSE OVERVIEW:
Welcome to the Cost Estimation & Budgeting in Building & Construction Projects course. This training is designed to develop your ability to prepare accurate construction cost estimates, build reliable project budgets, and manage financial performance from planning through to post-completion review.
Accurate cost planning is essential to the commercial viability of construction projects, enabling informed decision-making, competitive tendering, and effective financial control. Misaligned estimates can lead to delays, disputes, and profit erosion, making it critical that budgeting processes are systematic, transparent, and aligned with project objectives.
The course begins by exploring the purpose and function of cost estimation in the construction context. Participants will examine the distinctions between estimating, quoting, tendering, and budgeting, and assess how poor estimates can impact procurement, cash flow, and contractual outcomes. Emphasis is placed on the importance of integrating financial foresight into every stage of project development and delivery.
Understanding the scope of a project is a prerequisite for accurate cost planning. This section focuses on how to review architectural, structural, and services documentation, identify project inclusions and exclusions, and interpret constraints or conditions that affect cost. Participants will also consider the contractual and technical deliverables that shape the estimating approach.
Cost estimation occurs in progressive stages. This section introduces the different types of estimates—preliminary, detailed, elemental, and definitive—and explains their application across feasibility studies, tenders, procurement planning, and construction control. Selecting the appropriate estimate type at each stage ensures consistency and clarity in financial planning.
Reliable estimates depend on quality data. This section outlines how to gather and interpret cost inputs from historical data, published rate sources, and supplier pricing. Location-based adjustments, market conditions, and data transparency are discussed to support consistency and audit readiness in estimates.
Material and labour costs form the foundation of all estimates. This section explains how to conduct quantity take-offs, apply unit rates, and factor in wastage. Participants will learn to calculate labour hours using crew sizes, productivity benchmarks, and site conditions to produce realistic, trade-specific forecasts.
Construction relies on plant and temporary infrastructure. This section addresses how to quantify plant costs, whether hired or owned, and how to allow for critical items such as hoists, scaffolding, and site compounds. Duration-based planning for temporary works is incorporated to support construction sequencing.
Subcontractor and supplier engagement influences cost certainty. This section provides strategies for issuing pricing packages, reviewing quotes, and verifying completeness. Allowances such as provisional sums and prime cost items are examined as part of the broader cost control strategy.
Preliminaries and site overheads must be included in all project budgets. This section covers site establishment, supervision, site utilities, amenities, and traffic controls. Estimating the cost of signage, permits, and safety infrastructure ensures budget completeness.
Risk is inherent to construction pricing. This section introduces methods for identifying cost-related risks and applying contingencies proportionate to specific items. The difference between general risk allowances and calculated contingencies is clarified for accuracy and accountability.
Budgeting requires a structured approach. This section outlines how to develop budget frameworks using cost codes, trade breakdowns, and stage allocations. Participants will explore how to align budgets with programs, cash flow forecasts, and trade responsibilities.
Cash flow planning ensures project solvency and procurement coordination. This section explores how to schedule expenditures, identify peak spend periods, and time payments and claims accurately. Budget planners will learn how to forecast supplier payments, subcontractor claims, and major purchases.
Estimating software enhances accuracy and efficiency. This section introduces leading tools such as CostX, Buildsoft, and Cubit, and demonstrates how to import take-offs, apply rates, manage revisions, and generate reporting outputs for internal or client use.
All estimates must undergo review before submission. This section outlines how to check for calculation errors, omissions, or overlaps, and benchmark estimates against historical project data. Internal review and approval procedures are highlighted to ensure governance and risk management.
Tendering requires strategic pricing. This section focuses on how to assess competitor behaviour, adjust mark-ups, and present tender submissions in a format that is both commercially competitive and client-compliant. Flexibility in pricing strategy is addressed to adapt to shifting market forces.
Cost control must continue throughout construction. This section explains how to track actual costs against budgets, monitor accruals and commitments, and provide regular reporting to support on-site decision-making. Budget adjustments in response to real-time changes are also discussed.
Variations are an inevitable part of construction budgeting. This section presents strategies for quantifying the cost of scope changes, preparing detailed variation estimates, and updating project budgets accordingly. Participants will explore the documentation and communication pathways required for variation approval.
Post-completion cost review supports organisational learning. This section outlines how to reconcile final costs, conduct margin analysis, and document financial outcomes. Lessons learned are used to improve future estimating accuracy and refine pricing models.
Continuous improvement is the key to long-term success. This section focuses on reviewing estimating performance, updating internal tools and rate libraries, and incorporating feedback from site and finance teams. The goal is to institutionalise best practice across future budgeting exercises.
By the end of this course, you will be equipped with the knowledge, tools, and practical methods to plan construction costs accurately, build defensible budgets, and monitor project financial performance with confidence—supporting the delivery of commercially successful outcomes across a wide range of building projects.
Each section is complemented with examples to illustrate the concepts and techniques discussed.
LEARNING OUTCOMES:
By the end of this course, you will be able to understand the following topics:
1. Introduction to Estimating and Budgeting in Construction
- Purpose of accurate cost estimation and budgeting
- Differences between estimating, quoting, tendering, and budgeting
- Impact of poor estimates on project viability and performance
2. Understanding Project Scope and Requirements
- Reviewing architectural, structural, and services drawings
- Identifying inclusions, exclusions, and project-specific constraints
- Clarifying deliverables and contract conditions that affect cost
3. Types and Stages of Estimates
- Preliminary (conceptual), detailed, elemental, and definitive estimates
- Estimates for feasibility, tendering, procurement, and control
- Selecting the appropriate estimate for the project stage
4. Gathering and Interpreting Cost Data
- Using historical data, published rates, and supplier quotes
- Adjusting for location, inflation, and market fluctuations
- Documenting data sources for transparency and audit
5. Quantifying Materials and Labour Requirements
- Conducting accurate take-offs from plans and specifications
- Calculating material volumes, unit rates, and waste factors
- Estimating labour hours based on productivity and crew sizes
6. Allowing for Plant, Equipment, and Temporary Works
- Identifying hire vs owned equipment costs
- Including crane time, scaffolding, hoists, and site facilities
- Estimating durations and dependencies related to plant usage
7. Subcontractor and Supplier Pricing
- Sending out packages and scope for trade pricing
- Comparing quotes for completeness and consistency
- Managing provisional sums and prime cost allowances
8. Preliminaries and Site Overheads
- Estimating site establishment, supervision, and utilities
- Allowing for project signage, permits, and security
- Planning for mobile offices, amenities, and access routes
9. Risk Allowances and Contingency Planning
- Identifying cost risks
- Applying contingency percentages to specific cost elements
- Distinguishing between contingency and risk allowances
10. Preparing a Project Budget Structure
- Breaking down the budget into cost codes and work packages
- Aligning budget structure with the construction program
- Allocating costs by trade, stage, and responsibility
11. Cash Flow Forecasting and Cost Flow Planning
- Scheduling expenditure over the project duration
- Identifying high-spend periods and payment scheduling
- Planning progress claims, subcontractor payments, and purchases
12. Using Estimating and Budgeting Software
- Introduction to common estimating tools
- Importing quantities, applying rates, and managing revisions
- Exporting reports for tendering, review, or approval
13. Reviewing and Finalising Estimates
- Checking for omissions, errors, or double-ups
- Benchmarking against previous similar projects
- Obtaining internal approvals before submitting tenders
14. Tendering and Pricing Strategy
- Understanding competitor behaviour and market forces
- Adjusting margins, overheads, and mark-ups strategically
- Presenting pricing in client-friendly formats
15. Budget Tracking During Construction
- Comparing actual costs to estimated budgets
- Recording committed costs, accruals, and payments
- Using budget reports to inform site decisions
16. Managing Variations and Scope Changes
- Assessing the cost impact of client or design changes
- Preparing variation estimates and pricing breakdowns
- Updating the project budget to reflect approved variations
17. Post-Project Cost Review and Reporting
- Conducting a final cost reconciliation and margin analysis
- Documenting cost overruns, savings, and key learnings
- Updating cost databases for future use
18. Continuous Improvement in Estimating Practices
- Reviewing estimator performance and internal processes
- Incorporating feedback from site teams and finance
- Updating templates, rate libraries, and estimating tools regularly
COURSE DURATION:
The typical duration of this course is approximately 2-3 hours to complete. Your enrolment is Valid for 12 Months. Start anytime and study at your own pace.
COURSE REQUIREMENTS:
You must have access to a computer or any mobile device with Adobe Acrobat Reader (free PDF Viewer) installed, to complete this course.
COURSE DELIVERY:
Purchase and download course content.
ASSESSMENT:
A simple 10-question true or false quiz with Unlimited Submission Attempts.
CERTIFICATION:
Upon course completion, you will receive a customised digital “Certificate of Completion”.