What do estimates typically account for in their calculations?

Estimates in any project, especially in building services engineering, are critical for budgeting and planning. They typically account for potential unforeseen expenses. This is important because projects often encounter unexpected challenges, such as changes in material costs, labor availability, or regulatory issues that weren't initially anticipated. By including a buffer for these unforeseen expenses, estimates aim to provide a more realistic picture of the total project cost, helping to ensure that budget overruns can be managed effectively. This approach allows project managers and stakeholders to prepare for uncertainties, ensuring that sufficient funds are available to address issues that may arise during the course of a project.

The other aspects mentioned—labor costs, basic material pricing, and design and planning costs—are also important factors in cost estimations, but they do not address the inherent uncertainty and potential variability in project execution that unforeseen expenses capture.