The success of a construction project depends not only on architectural design or solid engineering but also on how closely the project sticks to its budget. Managing project costs — with its complex terminology, multi-stage processes, and strict legal regulations — is one of the most critical disciplines in the industry. In the first module of this comprehensive guide we prepared at Approx, we lay the foundational concepts needed to understand what and why the entire cost-management process is done. In this article, we bring together the industry’s key jargon, the vital role these concepts play in project management, and the legal “rules of the game” that govern the whole process.
Latest Insights from the World of Quantity Surveying and Cost Management
In the first module, we learned what quantity surveying, cost estimation, procurement rules, and contract types mean, and why they matter in the bigger picture of a construction project. We also established a solid understanding of terminology and legal context. Now, it’s time to go deeper into how quantity surveying is actually done — because before measuring and calculating, you must first read and interpret the project correctly. If you misunderstand the project drawings, even the most advanced software (including approx.one!) cannot give you accurate results.
In the previous modules, we covered theory: we learned core terminology in Module 1 and the techniques for reading project documents in Module 2. Now it is time to get hands-on and see how we actually measure and quantify the elements of a building from foundation to roof. This module is the most practical and intensive part of the series. We will walk through how to quantify the main work groups that make up a building step by step. Every item that contributes to the cost of the project is calculated at this stage.
In the previous modules, we focused on understanding the foundations of cost management, learning how to read project documentation correctly, and calculating quantities accurately. At this stage, we have detailed quantity lists covering every aspect of the project — from excavation volumes and concrete quantities to wall areas and finishing surfaces. However, quantities alone do not answer the most critical question in any construction project: How much will this actually cost? This module marks a turning point in the series. Here, quantities are transformed into monetary values. We move from measurement to decision-making. This is where budgets are formed, tenders are evaluated, and financial risks become visible.
In the first four modules, we learned how to convert a project’s presence on paper — its plans, sections, and details — into real, measurable quantities and then into priced items. By now, you have a detailed table showing thousands of rows of quantities and their prices. Module 5 is where this complex dataset is transformed into the final cost estimate file that enables decision-makers — investors, procurement committees, and project managers — to allocate a budget quickly and accurately. This final phase does more than just aggregate data. It presents information in a logical, orderly format ready for tender, including required additions like profit, overhead, and tax.