What type of cost estimate is done during the Design Development phase?

During the Design Development phase, a detailed pricing based on actual components is conducted to provide an accurate estimation of costs. This phase involves refining the design to a point where it becomes feasible to identify the specific materials and systems that will be used in the project. As a result, the estimator can evaluate the costs associated with these actual components, allowing for a thorough understanding of the financial implications of the design decisions made.

This form of estimation is essential because it supports informed decision-making regarding design choices, material selections, and potential budget adjustments. By focusing on the actual components and their associated costs, project teams can ensure that the design aligns with budgetary constraints and project goals, facilitating effective cost control as the project moves into the later stages of development and construction.