Explain the estimated cost is never the actual cost.

The word ‘estimate’ itself refers that it can never be actual. An estimate is a probable cost of construction for a work.

The accuracy of an estimate depends on a careful study of the various dimensions on the drawings, the method of estimating, consideration of rates, probable expenses which may be required for various unforeseen works and laborers and also quantity of tolerance for wastage.

Also the actual cost depends upon the skill and experience of the estimator. But the actual cost can be known from the physical measurements of the dimensions for various items of work at site and the actual rates of all such items of work during execution of work.

All expenses for all probabilities can be known when the construction is completed. Day-to-day expenditure is maintained by the completion of the work as well as the account.

So, it can be justified that whatever method may be adopted,     in  general, all estimates are approximate in nature and can never be the actual cost of work.

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