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Budget vs. Estimate in Preconstruction

January 11, 2024
Pat Antkowski

The preconstruction phase is one of the most critical stages of any construction project. During this stage, the project's scope, goals, and milestones are defined, laying the foundation for any successful project. It's also during the preconstruction phase when a contractor can predict and provide a project budget and a subsequent estimate for their client.

In this blog post, we discuss what the preconstruction stage is, the difference between project budget and estimate, and Lemberg’s simple but smart approach to providing all clients with the most accurate budget and estimate. 

What Is Preconstruction?

Preconstruction involves a construction project's planning and preparation stages before actual construction work begins. It is a vital phase as it provides an opportunity to lay the foundation for a prospective project and accurately predict project cost and timeline. It also helps identify potential issues or roadblocks that may hinder the project's success. The more key project players you can get involved in the preconstruction phase, the more thorough planning you can do upfront, ultimately leading to the most accurate project budget and estimate. 

Budget vs. Estimate: What’s The Difference?  

In construction, the terms "budget" and "estimate" are distinct yet interrelated concepts.

A budget refers to the financial plan that outlines the allocation of resources, costs, and expenditures for an entire construction project. It provides a comprehensive overview of anticipated expenses, covering materials, labor, equipment, and overhead costs. 03212023Lemberg-83

Budgeting is offered to help customers and their architects and builders determine the rough costs to accomplish their goals. It serves as the conceptual guide and is usually done well in advance of a project, before any contracts are signed, throughout the project as changes in architecture are made, or as different services are integrated.

On the other hand, a project estimate is a detailed approximation of the project's anticipated costs based on factors such as historical data, market trends, and specific project requirements. In other words, a cost estimate provides the overall framework for a contract, whereas the budget is the exchange of information that lies beneath the planning. 

While a budget serves as a guidepost for financial planning and control throughout the project, an estimate lays the groundwork for a contractual agreement, providing stakeholders with a detailed understanding of anticipated costs.

Leveraging Experience to Provide the Most Accurate Construction Budget and Estimate 

To ensure accurate budgeting and estimating, Lemberg's electrical construction team collects data from comparable successful projects completed as far back as ten years – pulling real data from real projects — right down to the fixtures. Taking into account current market trends, technological advancements, and pricing fluctuations, the team then adjusts the costs to offer the most accurate estimate and budget.

“We use information from past successes to create a more accurate conceptual budget, giving the owner a better sense for the actual scope of the project.” —  Lemberg's Vice President for Preconstruction Pat Antkowski.

Drawing from past experience and utilizing the latest virtual design technology, the Lemberg team and the customer are better able to fully visualize the project early in the preconstruction stage, which helps produce a more accurate hard project estimate. This approach may seem way too simple, maybe even obvious, but it’s also incredibly accurate.

With hundreds of successful projects under our belt, we let our experience speak for itself. Check out our full project gallery here!

Lemberg’s Budget and Estimating Services

At Lemberg, we recognize the critical role of budgeting and estimating within our preconstruction and overall project delivery services. Our experienced engineers and estimators will work closely with you to understand your vision, ensuring we provide the most accurate project budget and cost estimate.

Lemberg has been providing expert electrical construction services to businesses in Milwaukee and SE Wisconsin for over 95 years. With almost a century of experience, you can trust our preconstruction services will provide you with a comprehensive, detailed, and effective plan that is honest and sets the stage for a successful project.

Are you interested in learning more about our budgeting and estimating preconstruction services? Call us at (262) 781- 1500 or request a project quote today! We look forward to hearing from you!


Antkowski_150x150Pat Antkowski is Vice President for Construction at Lemberg. He and his team offer comprehensive electrical construction services including design-build, BIM and CAD services as well as full access to all of Lemberg’s divisions – electrical construction, service, energy technologies, data communications, and signs. Get more information on Lemberg’s Electrical Construction Services.