Investor's cost estimate is a document estimating the expected costs of execution of a construction project, prepared for the investor before the works commence. The investor's cost estimate takes into account the scope of works, their quantities, unit rates and the total value of the construction project. It is prepared on the basis of the construction design and the works estimate, in accordance with the cost estimating principles and the applicable catalogues of material expenditures (KNR). Amongst other things, it is required by contracting authorities in tender procedures and when applying for public funding. Private investors are also keen to use it - it makes it possible to assess budgets, verify contractors' offers and reduce financial risks.
In modular and timber-frame construction, the cost estimate often also includes a prefabrication costsThe document does not constitute a commercial offer, but is to be used as a reference for further negotiations. The document does not constitute a commercial offer, but is a reference for further negotiations with contractors.
