LYKA JANE L.

RAMOS

BSCE 4B

PC-CEM 5 ACTIVITY 1

January 24, 2024

1. What is in preliminary estimate?

A preliminary estimate is an initial approximation of a particular value, quantity, or measurement that is

based on incomplete or limited data. It is a rough calculation or estimation made early in the planning or
design process, before more detailed information becomes available. Preliminary estimates are used to
provide a broad understanding of the cost, time, or resources required for a project or task, and they
help to guide early decision-making. They are typically refined and updated as more information
becomes available.

2. What is a preliminary design cost estimate?

A preliminary design cost estimate is an early assessment of the anticipated expenses associated with a
project based on the initial design concepts. It provides a rough estimate before detailed designs are
finalized, helping stakeholders gauge the potential budget requirements.

3. What are the methods of preliminary cost estimate?

A. Conference Estimating Method

B. Financial Estimating Method

C. Unit Estimating Method

D. Cube Estimating Method

E. Superficial Area Estimating Method

F. Story Enclosure Unit Estimating Method

4. What is a preliminary cost?

A preliminary cost refers to an initial or early estimate of the expenses associated with a project. It is
usually provided in the early stages of project planning, based on limited information and high-level
design concepts. Preliminary costs help stakeholders get a rough idea of the financial requirements
before more detailed planning and design work is carried out. These estimates are subject to refinement
as the project progresses and more information becomes available.
5. What is the difference between preliminary cost estimate and standard cost estimate?

STANDARD COST ESTIMATE

Standard cost estimate is a tool for establishing prices for materials. It is used to calculate the costs of
goods manufactured and the costs of goods sold for each product unit. In order to establish the cost
estimate with quantity structure of a material, the bills of materials and routing of the material must
exists for the materials to be costed. The cost estimate with quantity structure uses the material master
data to determine the material consumption and internal activities required to produce the product.

PRELIMINARY COST ESTIMATE

Preliminary cost estimate is done in planning cost stage so as to know how much we need to produce
the materials. This is as good as planned cost and once the production is finished, the Standard cost
estimate is done periodically to update the finished material price in the materials master.

6. What are preliminaries examples?

A. Site Preparation

B. Temporary Facilities

C. Mobilization and Demobilization

D. Permits and Approvals

E. Site Security

F. Project Management

G. Insurance

H. Surveying and Geotechnical Investigations

I. Utilities Connections

J. Environmental Considerations

7. Why is preliminary cost estimate required?

Preliminary cost estimates are used to provide a broad understanding of the cost, time, or resources
required for a project or task, and they help to guide early decision-making. They are typically refined
and updated as more information becomes available.

8. Why is preliminary cost estimation important?

1. Helps to estimate the total cost of the project

 1. Helps in controlling the expenditure
1. Helpful in making budgeting decisions
1. Helps in determining the effect on specific project implementation processes
1. Helps in overall project management

9. Is the most reliable estimate preliminary estimate?

Detailed estimate is the most reliable estimation. A imprecise calculation of the value, number, quantity,
or extent of something is defined as an estimate.