Estimation During Project Report Stage and for Project Approval

Execution Strategy 

After the feasibility of the construction project is established and the project is considered for execution next stage will be preparation of a project report which includes essential details which help execution of project. They are: 

1. layout of the project, 
2. design and drawings, 
3. technical specifications, and 
4. estimates of cost. 

The project report and cost estimates also help in getting the approvals of the competent authority. 

Before taking up estimation for the project report the layout of the works, design, drawings and technical specifications should be completed. Owner's  organisation has to prepare estimates of costs if it intends to construct the works departmentally or if it wants award the contract. For turnkey contracts, design and pricing (based on cost estimating) is done by the contractor while for jumpsuit contract layout, design and drawings are done by the owner while pricing based cost estimating is done by the contractor. It is therefore essential, at the stage of preparation of project report, that user/owner decides the execution strategy which decides 

1. whether the project will be taken departmentally or through contract, 
2. if by contract what type of contract will be chosen and how the contractor will be selected. 

Decision regarding execution strategy helps the client in preparing the right type of estimates.