Question

Can you please create cost estimates for home renovation with a budget of $50,000? Explain technique used

Answer 1

Cost estimation is a process in project management all the way down to portfolio. It helps in identifying the material requirement, capabilities, allocate resources for planning and controlling, generate reports that help to guide decision-makers.

Here some techniques required for estimation such as expert judgment, analogous estimation, parametric estimation, bottom-up estimation, cost of quality, group decision-making technique, etc.

I used bottom-up cost estimation because this methodology allowed me to determine work at the lowest possible level of detail and aggregate to arrive at a summary total optimum budget. Here the budget is 50000$ for the renovation of a home where better quality needed at this cost. So the first step is to identify all required tasks, here check out the work and cost break down the structure, labor required and their cost, material required, indirect costs, etc.

In the second step identify all required tasks dependency such as required equipment, supplier, transportation cost, etc involved.

The third is estimated indirect costs such as hired equipment, machines, etc.

The final step is to estimate the working days required to complete the project.

So for 50000$ total budget

Total days required are 20 days and the labor required is 5 per day cost of 5 labor is 1000$ so total labor cost 20000$. And total material such as paint, cement, woods, lights, pipes, curtains, window shield, and their transporting cost, etc total cost is 18000$. After this completion, some required equipment such as Air Conditioning, fans, bulbs, renewing other instruments cost is 12000$.

So the total budget cost meets in that renovation.

*PLEASE RATE WITH A THUMBS UP *