Why Order of Magnitude Estimates Matter

Projects are often evaluated before detailed plans exist.

At the feasibility stage, decision-makers may need to know whether a proposed development is broadly aligned with an available investment or construction budget before committing significant resources to design.

An order of magnitude estimate provides an early cost reference based on the information available at that stage.

Building an Early Construction Cost Range

The estimate can be developed from available project characteristics such as:

  • Building type
  • Approximate building area
  • Project location
  • Number of floors
  • Preliminary site conditions
  • Intended use
  • Construction type
  • Preliminary finish level
  • Major building systems
  • Project scope
  • Existing project information
  • Preliminary drawings where available

The estimate clearly identifies the assumptions used to establish the early cost position.

What Is Included in an Order of Magnitude Estimate

  • Preliminary project review
  • Building area analysis
  • Project type classification
  • Preliminary construction cost
  • Cost-per-square-foot analysis where appropriate
  • Major trade allowances
  • Sitework allowance
  • Structural allowance
  • Architectural allowance
  • Exterior enclosure allowance
  • MEP allowances
  • Interior finish allowances
  • General conditions
  • Major equipment allowances where applicable
  • Preliminary soft-cost notes where requested
  • Assumptions
  • Exclusions
  • Cost summary
  • Budget range where appropriate
  • Editable Excel estimate

Feasibility & Development Planning

Order of magnitude estimates can help evaluate whether a potential project is financially viable before detailed design begins.

Developers and owners can use early construction cost information when comparing development concepts, evaluating potential sites, considering project sizes, or establishing preliminary investment requirements.

Early Cost Planning for Different Projects

Order of magnitude estimating can be used for:

  • Commercial developments
  • Multifamily developments
  • Residential projects
  • Industrial facilities
  • Warehouses
  • Retail developments
  • Office buildings
  • Hospitality
  • Institutional projects
  • Renovations
  • Additions
  • Tenant improvements
  • Preliminary development concepts

California Order of Magnitude Estimating

We provide order of magnitude construction cost estimating throughout California for owners, developers, investors, architects, contractors, and other project stakeholders.

The estimate can account for the available project location and the level of project information provided.

Order of Magnitude vs. Detailed Construction Estimating

An order of magnitude estimate is intentionally prepared at an early stage when detailed project information is limited.

It should not be treated as a substitute for a detailed quantity takeoff, construction estimate, or competitive bid.

As the design progresses, additional drawings and specifications allow the project budget to be refined into increasingly detailed estimates.

Assumptions & Limitations

Because order of magnitude estimates are prepared before complete construction documents exist, assumptions play an important role.

We identify the major assumptions and exclusions supporting the preliminary cost so project stakeholders understand what the early estimate represents and what information may change as design develops.

Related Services

For broader conceptual budgeting, see [Conceptual Cost Estimating](/services/conceptual-estimating/conceptual-cost-estimating/).

For estimates based on schematic drawings, see [Schematic Design Estimating](/services/conceptual-estimating/schematic-design-estimating/).

For detailed project pricing, see [Construction Cost Estimating](/services/construction-cost-estimating/).

For early project budgeting, see [Preconstruction Budgeting](/trades/general-requirements/preconstruction-budgeting/).

What Is Included in Your Estimate

  • Order of magnitude cost range
  • Parametric cost assumptions
  • Cost-per-square-foot analysis
  • Feasibility metrics
  • Executive summary presentation