AI Cost Estimation
The AI Cost Estimation module helps estimators produce defensible, fast cost estimates for tenders and feasibility studies — combining historical project benchmarks, parametric models, and Claude-powered narrative generation.
Tip. The module is mockable end-to-end for tenants without an AI API key — it returns reasonable estimates from the historical bench when Claude is unavailable.
Overview
Three modes:
- Parametric — area × unit rate by space type, calibrated from your historical projects.
- BOQ-driven — line-by-line estimation using current rates from the catalog.
- AI hybrid — combines parametric + BOQ + an AI narrative explaining assumptions and risks.
Key concepts
Estimate. A versioned estimate record — EST-2026-0042. Has inputs (project type, area, location, complexity), outputs (cost range, breakdown), and assumptions.
Benchmark. A historical project's actual cost per m² (or per appropriate unit) tagged by project type, era, location, complexity. The system seeds 50+ UAE benchmarks; tenants can add their own.
Parametric model. A formula cost = f(area, type, location, complexity) calibrated from benchmarks.
Confidence interval. Every estimate produces a low / mid / high range based on benchmark variance.
AI assumptions. When Claude is enabled, the AI generates a structured assumptions narrative — what's included, what's excluded, key risks. The narrative is reviewed by the estimator before being attached to the tender.
Step-by-step: produce a parametric estimate
- Estimation → New estimate.
- Pick the project type (residential, commercial, infrastructure, etc.).
- Enter area / quantity, location (emirate / city), complexity tier (1-5).
- Click Estimate — output shows low / mid / high in your tenant's base currency.
- Save the estimate.
Step-by-step: produce a hybrid AI estimate
- From a parametric estimate, click Run AI hybrid.
- The AI pulls comparable benchmarks and produces a narrative explaining the estimate.
- Review the narrative and edit before attaching.
- Save — the hybrid estimate is now available for tender submission.
Step-by-step: convert estimate to BOQ
- From an estimate, click Generate BOQ skeleton.
- The system creates a BOQ with sections sized to the estimate's breakdown.
- The estimator fills line-by-line rates.
- Final BOQ is locked into the tender.
Common tasks
- Compare two estimates: Estimation → Compare side-by-side.
- Add a benchmark: Estimation → Benchmarks → New — your tenant's project actuals.
- Recalibrate the parametric model: Estimation → Settings → Recalibrate runs nightly automatically.
- Export estimate to PDF: standard PDF layout with assumptions, breakdown, charts.
Troubleshooting
- "Estimate range is suspiciously wide." — Limited benchmarks for that project type. Add more historical benchmarks.
- "AI hybrid returned an empty narrative." — Claude API key missing or quota exceeded. Falls back to parametric only.
- "BOQ skeleton missing sections." — Estimate breakdown is too high-level. Pick a finer-grained project template.
- "My historical project doesn't show in benchmarks." — Project must be marked Closed with actual cost recorded.
Permissions reference
| Permission | Who needs it |
|---|---|
ESTIMATION_VIEW | Bid team, PMs |
ESTIMATION_CREATE | Estimators |
ESTIMATION_AI_RUN | Senior estimators |
ESTIMATION_BENCHMARK_MANAGE | Estimating manager |
See also: QTO, BOQ, Tenders, Predictive Analytics.