Our Preliminary Estimating Services Designed to Help You Win More Bids
In the lifecycle of any major construction undertaking spanning new commercial developments, large-scale residential subdivisions, or complex industrial expansions the Preliminary Estimate is the singular, foundational document that determines financial viability. Conducted during the conceptual or schematic design phase, this estimate is the first critical checkpoint that validates the project’s ambitious scope against the hard reality of the budget and the available capital.
Relying on outdated cost indices, simple square footage averages, or generalized metrics at this stage is a high-stakes gamble. This inadequacy inevitably leads to expensive redesigns, missed opportunities to secure crucial financing, or, most damagingly, proceeding with a project that is fundamentally and financially unviable.
At Aris Estimating, our Preliminary Estimating Services provide the strategic foresight needed by Developers, Owners, and Architects. We deliver fast, fact-based, and highly reliable conceptual budgets that define the financial parameters, secure investor confidence, and keep your project anchored to fiscal reality from Day One.
I. Defining the Strategic Value: Accuracy in Ambiguity
The Preliminary Estimate (also known as Conceptual, Order of Magnitude, or Feasibility Estimate) is designed to inform high-level decision-making when detailed design documentation is scarce.
The Critical Role of Accuracy and Speed
While the accuracy range is necessarily broader than a final bid ($\pm 15\%$ to $\pm 25\%$), this early estimate must be defended by verifiable data. We understand that preliminary decisions must be made quickly to capitalize on market windows and maintain project momentum. Our methodology is streamlined to deliver robust conceptual budgets within 24 to 48 hours for most projects, using incomplete data while maintaining a professional standard of precision.
Preliminary Estimate vs. Definitive Estimate
| Estimate Type | Project Stage | Typical Accuracy Range | Key Financial Risk Mitigated |
|---|---|---|---|
| Preliminary Estimate | Conceptual/Schematic Design (0–30% Plans) | ± 15% to ± 25% | Feasibility & Capital Risk: Prevents proceeding with a project that is too expensive to build. |
| Definitive Estimate | Construction Documents (100% Plans) | ± 5% | Bidding & Procurement Risk: Ensures final bid price is competitive and profitable. |
II. Methodology: Translating Concepts into a Reliable Cost Model
Since detailed drawings are not yet available, our process relies on sophisticated cost modeling, specialized metrics, and proprietary databases to construct a robust and defensible budget.
A. Utilizing Advanced Cost Metrics
We build the estimate based on key project performance metrics, validating assumptions with established industry standards:
- System Unit Costs: Costing major construction components (e.g., structural frames, elevator systems, specific roofing types) based on system capacity or area, rather than detailed component counts. For example, calculating the cost per square foot of curtain wall versus brick veneer.
- Proprietary Cost Data: We leverage current, highly localized unit cost databases (including RSMeans) specifically structured for conceptual project elements, ensuring the metrics accurately reflect the target region’s labor and material pricing.
- Historical Factor Analysis: We apply specific cost factors derived from similar projects in our extensive portfolio (e.g., cost per hotel room key, cost per parking space, cost per industrial process unit) to quickly generate a validated baseline budget.
B. The Crucial Basis of Estimate (BOE) Narrative
Every Aris Preliminary Estimate is delivered with a clear and detailed Basis of Estimate (BOE) narrative, which is often more critical than the cost figure itself. The BOE explicitly defines the boundaries and assumptions of the financial model:
- Engineering Assumptions: All engineering decisions made in the absence of drawings (e.g., standard floor-to-floor heights, assumed HVAC tonnage efficiency, specific structural bay sizes).
- Exclusions and Allowances: Clearly itemizing what costs are deliberately left out (e.g., tenant fit-out, specialized owner-furnished equipment, land acquisition) and identifying high-risk areas requiring generous allowances.
- Contingency Justification: A calculated contingency percentage that is justified by the level of design uncertainty (e.g., a $0\%$ complete concept might warrant a $25\%$ contingency, while a $30\%$ schematic design might only require $15\%$).
III. Strategic Applications Across the Design-Finance Cycle
Our Preliminary Estimating Services enable crucial financial and design decisions long before substantial engineering and design fees are incurred.
For Developers and Investors
The Preliminary Estimate is the key to unlocking capital and controlling the project narrative:
- Go/No-Go Decisions and Feasibility: Provides the objective financial data needed to quickly vet a project idea against the expected return on investment (ROI) and capital stack limits. This accelerates portfolio decision-making.
- Securing Financing: Lenders and sophisticated investors require a validated, independent estimate to approve initial project funding. Our professional, audited reports lend unparalleled credibility and authority to your proposal.
- Budget Alignment and Cap-Setting: Immediately establishes a firm target Maximum Allowable Construction Cost (MACC), preventing architects from over-designing the project beyond the client’s fiscal capacity.
For Architects and Design Teams
This service is essential for proactive design management and client relationship preservation:
- Proactive Value Engineering (VE) Guidance: We identify the highest-cost systems (often structural or facade materials) early on, allowing the design team to make major course corrections while sketches are still pliable, saving thousands in sunk design hours.
- Scope Phasing and Scalability: We help define which components of the project are “Phase I” versus “Phase II,” allowing the client to adjust project scalability if the initial concept exceeds the budget without abandoning the overall vision.
IV. The Aris Estimating Advantage: Speed, Trust, and Expertise
We offer a professional level of trust and efficiency that protects the critical, high-risk early stages of your capital investment.
- Dedicated 24/7 Support: Our accessibility ensures that critical questions about scope, assumptions, and pricing are answered immediately, keeping your project pipeline moving forward without regional time zone delays.
- Professional Reporting: Deliverables are presented in a clear, executive-level format, making them instantly suitable for presentation to lenders, corporate boards, and institutional investors.
- Expertise Across Sectors: Whether you are planning a high-rise office (Commercial), a 500-unit planned community (Residential Development), or a new logistics center (Industrial), our estimators have the specific historical data and metric knowledge needed for accurate conceptual modeling.
Begin your project with financial discipline. Partner with Aris Estimating to ensure your bold vision is anchored in sound economic reality.
