The elemental method is a budget setting technique that considers the major elements of a building and produces an order of cost estimate based on an elemental breakdown of the project. It can also be used to develop an initial cost model as a prerequisite to an elemental cost plan.
The method uses element unit quantities (EUQs) and element unit rates (EURs). The QS measures or estimates the quantity of each element, applies a rate drawn from cost data for comparable projects, and adjusts it for differences in specification, location and time. Main contractor’s preliminaries, overheads and profit, fees, other development and project costs, risk and inflation are then added separately to arrive at the cost limit. Because it reflects the actual form and specification of the building, the elemental method is more reliable than the floor area or functional unit methods once enough design information exists.
The elemental method of estimating is a method of cost prediction.
Related terms: Element Unit Rate, Functional Unit Method, Floor Area Method, Order of Cost Estimate.
