Conceptual estimating requires a contractor to take early stage conceptual drawings and turn them into detailed estimates with a Work Breakdown Structure (WBS) that is useful during the initial programming, schematic and design development phases. https://dbmgt.co/2RD1dAT During these early stages the developer is putting together financing for the project. The difference between a project getting financed or not is often in the single-digit percentage on cost and revenue projections. Construction is about half the total cost of the development making a realistic budget crucial even at this early stage. > Too high of a plug number and the development won’t pencil out for cash flow. They will likely source a second opinion from another contractor or pull the plug on the development. > Too low of a plug number and it won’t be constructable. Raising the number later in the process may cause the financing to get pulled from the project. > The budget must be detailed in a way that is truly useful for the project owner, architect, consulting engineers and contractor to make good design decisions. The better a contractor is at this the earlier and more often they will be brought into the process. https://dbmgt.co/2RD1dAT
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