Define estimated cost and actual cost. What is the purpose of estimating?

Estimated cost is the anticipated or probable cost of the work and is usually prepared before the construction is taken up. 

Actual cost is the cost which is known only after the completion of the work from the account of the completed work.

PURPOSE OF ESTIMATING 

  1. To estimate probable cost of the work.com
  1. To find the various types and quantities of material required.
  2.  To find the various categories and quantities of labours required.
  3.  To give an idea of time required for the completion of the work.
  4.  To invite the tenders and quotations and to arrange contract.
  5. To control the expenditure during the execution of work.
  1. To justify investment from benefit cost ratio.
  1. To help in fixation of standard rent and valuation of properties.

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