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Project estimation refers to forecasting the costs, resources, and time required to complete a project. It is critical to project planning and financial management in contracting, serving as the basis for calculating expected costs and profit when submitting a proposal. Estimates can be created directly from the project or by going to Project Costing Project Costing Documents Project Estimates.

This process includes:

  • Estimating direct costs (such as labor, materials, and equipment)

  • Estimating overhead expenses (such as administration, supervision, and utilities)

  • Adding markups to ensure profitability

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