Construction Estimating Levels
The American Society of Professional Estimators has identified a five-tier system that is used for classifying construction estimates. The levels become more detailed as you move through them, which makes the estimation more reliable.
1. Level 1 – Order of Magnitude: This is the rough estimation formed at the very beginning of the project and is based on experience and historic data.
2. Level 2 – Intermediate or Schematic: The estimate takes into consideration the schematic design once it has been created.
Level 3 – Preliminary or Design Development: Estimates are further refined during the design phase of the project and the accuracy is good enough for the basis of a budget.
Level 4 – Substantive or Construction Document: Once the construction drawings and specifications have been done, the estimate can use to hone its findings.
Level 5 – Definitive or Bid: Now, with all costs known, this is your most accurate and reliable figure and can be used to create bids and cost baselines.