The purpose of estimating costs is to gauge the economic impact from project phases from design to construction. An estimate provides a ballpark figure, not a precise number, assisting clients in decision-making. It’s impossible to be 100% accurate due to unforeseeable circumstances.

To choose a method, you as the Architect must understand client goals, timeframes, and the project complexity. Consider contextual factors like geographic location, governmental constraints, and potential for future work.

Three primary estimation methods exist: construction percentage, cost per square foot, and hourly rates. Each varies based on project type and context. For example, residential construction costs typically range from 8% to 15% of the total project cost.

Hybrid approaches combine methods to accommodate project phases and client preferences. An innovative approach involves a value-to-client model, where the architect charges a retainer and the client pays based on perceived value.

Choose the method based on priorities, context, and understanding of project rates.