9.6-Daily Discussion: As someone in pharmaceutical engineering, can you distinguish between these various costs? (Medical Engineering Technology Edition)

I. Estimation: Estimation, also known as investment estimation, takes place during the project proposal and feasibility study stages. The estimation is based on the project planning scheme (design plan), which involves calculating the possible costs associated with the construction project (including construction work, outdoor works, equipment and installation costs, etc.), other expenses related to project construction, contingency funds, and interest during the construction period (if loans are involved). These calculations are used to determine the scale of investment required for the project and to assist in selecting the appropriate financing options, serving as a reference for the decision-makers involved in the project investment. When making estimates, it is important to calculate other costs associated with project construction accurately and comprehensively; these costs are highly influenced by regional factors and policy considerations. As the project is gradually refined and specified, estimates of varying levels of detail can be obtained in accordance with the investment estimation procedures. At the request of the project owner, a detailed estimate report can be prepared during the stage of comprehensive feasibility study. II. Preliminary estimate: The preliminary estimate, also known as the design estimate, is prepared during the preliminary design or expanded preliminary design phase. Based on preliminary design or construction drawing documents, estimate indicators, estimate quotas, as well as current market information regarding pricing standards, the total investment required for a construction project is calculated step by step (at the level of individual works, separate projects, and the entire construction project), in accordance with the regulations for preparing design estimates for construction projects. The estimate requires preliminary design or expanded preliminary design drawings in order to calculate the project construction costs and determine the project price ； When preparing a budget estimate, care must be taken to avoid omissions, missing items, or double counting, and the standards must comply with the relevant quotas or specifications. III. Budget The budget, also known as the construction drawing budget, is prepared during the construction drawing design phase. Taking the construction installation drawing designs as the basis, and in accordance with the current pricing regulations (the Specifications for Quantity Surveying in Construction Projects and the relevant specifications for quantity calculation), the consumption quotas, market prices of labor, materials, and equipment, as well as the cost standards, the cost of construction installation works is calculated step by step (by sub-projects, partial projects, individual projects, and complete projects), in line with the procedures for preparing and reviewing budgets for construction projects; when required by the project, this cost is also aggregated to represent the total investment in the construction of the project. The budget requires construction drawings, as well as a compilation of the costs related to labor, machinery, and materials for the project, in order to determine the total cost of the construction work ； The key to preparing a budget is to calculate the volume of work, apply the budget quotas accurately, and use the appropriate fee rates.

Estimation, also known as investment estimation, takes place during the project proposal and feasibility study stages； The estimation is based on the project planning scheme (design plan), which involves calculating the possible costs associated with the construction project (including construction work, outdoor works, equipment and installation costs, etc.), other expenses related to project construction, contingency funds, and interest during the construction period (if a loan is taken). The estimate is also known as the design estimate, and it is prepared during the preliminary design or expanded preliminary design stage ； The estimate requires preliminary design or expanded preliminary design drawings in order to calculate the project construction costs and determine the project price. The budget, also known as the construction drawing budget, is prepared during the construction drawing design phase ； The budget requires construction drawings, as well as a summary of the costs related to labor, machinery, and materials for the project, in order to determine the cost of the construction work.

Estimation, also known as investment estimation, takes place during the project proposal and feasibility study stages； The estimation is based on the project planning scheme (design plan), which involves calculating the possible costs associated with the construction project (including construction work, outdoor works, equipment and installation costs, etc.), other expenses related to project construction, contingency funds, and interest during the construction period (if a loan is taken). The estimate is also known as the design estimate, and it is prepared during the preliminary design or expanded preliminary design stage ； The estimate requires preliminary design or expanded preliminary design drawings in order to calculate the project construction costs and determine the project price. The budget, also known as the construction drawing budget, is prepared during the construction drawing design phase ； The budget requires construction drawings, as well as a summary of the costs related to labor, machinery, and materials for the project, in order to determine the cost of the construction work.

The feasibility study phase is called estimation, the preliminary design stage is referred to as rough budgeting, and the actual implementation phase is known as the budget.

1. Estimation, also known as investment estimation, takes place during the project proposal and feasibility study stages； The estimation is based on the project planning scheme (design plan). It involves calculating the potential costs associated with the construction project – including construction and installation costs, outdoor works, equipment and installation expenses, as well as other costs related to project construction. Additionally, contingency funds and interest during the construction period (if loans are used) are taken into account. This information is used to determine the scale of investment required for the project and to select the most appropriate financing options, serving as a reference for the decision-makers involved in the project investment ； When making estimates, it is important to calculate other costs associated with project construction accurately and comprehensively; these costs are highly influenced by regional factors and policy considerations.        2. The estimate, also known as the design estimate, is prepared during the preliminary design or expanded preliminary design phase ； The estimate requires preliminary design or expanded preliminary design drawings in order to calculate the project construction costs and determine the project price ； When preparing a budget estimate, care must be taken to avoid omissions, missing items, or double counting, and the standards must comply with the relevant quotas or specifications.    3. The budget, also known as the construction drawing budget, is prepared during the construction drawing design phase ； The budget requires construction drawings, as well as a compilation of the costs related to labor, machinery, and materials for the project, in order to determine the total cost of the construction work ； The key to preparing a budget is to calculate the volume of work, apply the budget quotas accurately, and use the appropriate fee rates.

Feasibility study stage: estimation; Preliminary design stage: rough estimate; Construction design stage: budget

An investment estimate refers to the estimation of the investment amount required for a construction project (including project costs and working capital) during the investment decision-making stage, based on available information and certain methods. It encompasses all the costs associated with the project from its preparation and construction through to completion and commissioning. The budget estimate is prepared during the preliminary design phase, and it should cover all aspects of the project construction; for example, the overall budget estimate must take into account all costs required from the start of preparation until the project is completed, inspected, and handed over for use. Budgeting takes place during the detailed design phase. Generally, a total budget is not prepared; instead, only unit project budgets and comprehensive budget statements are created. These do not include costs from the preparation stage (such as surveying, land acquisition, and employee training costs).

Plan design and feasibility studies are referred to as estimation; preliminary design is called rough estimate; detailed design is known as budget

The budget is calculated before implementation