Guide for Estimating Construction Costs

Computer programs can help estimate construction costs.

Building a home or business from scratch can be an expensive proposition. Buyers typically want the builder or contractor to come in close to, or even under, the original budget. Many factors are important in determining just what that budget should be.

Location

Where the building will be situated factors a great deal into the overall cost. Buildings in large cities, where space is at a premium, may need more construction permits than those in rural areas. Depending on the type of structure being built, these permits can add hundreds or thousands of dollars to the final construction cost.

Materials

Materials run the gamut from common, inexpensive items such as stucco, Formica, and wood veneers to marble countertops and stained glass windows. Naturally, higher-end materials add significantly to the total cost.

Programs

Many computer programs and websites exist to help you estimate construction costs electronically, if you don't care to do so via traditional lists or charts. By entering information about the building type, materials used, location and other criteria, the program can come up with a number and rationale for your budget.

References

• Estimating Construction Costs; Robert L. Peurifoy and Garold (Gary) D. Oberlender; 2008