Cost estimation is the fundamental step in constructing a home or building on which important project decisions are dependent on. The accuracy of estimates lets the project complete on schedule, according to the planned work and also within the budgeted cost. A single estimation error brings along uncountable problems which seems difficult to handle and manage.
Precision in estimates yield multiple benefits, win projects and bids and lets you stay in business for good. On this platform, you can have a further understanding of the basics of construction estimating. It is a tricky concept to understand but with time, you can know about its ABCs. So, let us see the details and if any query comes, you can forward us:
Basics of construction cost estimating
We have come up with a detailed guide that is divided into series of steps. You can see the comprehensive details:
Step 1- Bid on a project on which you have sufficient experience
Accurate cost estimates can only be prepared if you choose the project that is of your specialized area. Avoid bidding on the project in which you have not even 1% experience. Lack of knowledge about that project niche increases the chances of making mistakes and that will put your repute at stake.
Precision in cost estimates is guaranteed when you bid on projects in which you possess immense proficiency. Know-how about that niche increase the chance of winning the bid and you can smoothly prepare cost estimates without making a single error.
Step 2- Review every single construction specification
Reviewing every single construction specification is of prime importance if you want to create accurate cost estimates. Top-notch construction professionals analyze the documents and make sure they are working with the most up to date price versions.
Going through every detail is imperative because it helps making important decisions. Specialized painting estimators carry updated info on management team qualifications, insurance requirements, and payment terms, bonding capacities, legalities and permits.
Step 3- Analyze Construction Drawings
The next step is to analyze construction drawings for preparing precise cost estimates. If reviewing specifications are important, in the same way, reviewing construction drawings are equally vital. This practice will give you a detailed picture regarding the whole scope of work.
Moreover, review the architecture drawings and get an understanding about working heights, and elevations because these factors impact construction costs. Furthermore, critically examine the division’s drawings and take key notes of technical details.
Step 4- Perform a Construction Quantity Takeoff
Once you are done reviewing the construction specifications and drawings’, performing a quantity takeoff is the next step! In this step, you have to count and measure the items needed for the project. To successfully accomplish this step, highlighters, and digital scale masters and click counters can help you out.
Step 5- Determining the direct costs
After getting done with the quantity takeoff step, you need to determine the direct costs and that includes material and labor. This will help you roughly knowing the total project budget cost. Calculating the material cost is simple, what you need to do is to contact suppliers and product manufactures and request for up to date quotes.
Step 6- Determining the indirect costs- Calculate Overhead and Profit
Adding overhead and profit is a must when preparing cost estimates. Remember that overhead are the indirect expenses which are needed to run business operations like office lease, marketing and sales and bookkeeping.
Bonus tip: Use Construction Estimating Software for preparing estimates
All thanks to the modern cloud-based technology- it has made the job of preparing cost estimates quick and that too without committing errors.
It has systematized and digitized the estimating process and brings every project item on one platform.
Besides, the software has increased estimating speed, accuracy and productivity and removes manual as well as error-prone activities. The only requirement from you is to upload the digital plan, perform takeoff and the cost estimate process is going to be automatically conducted. If you feel like making adjustments in the final report, you can do that.
Thus, that is all about the basics of construction estimating. It is not a lot of work, little practice is needed and that is all. Remember that using estimating software is always recommended as it streamlines the whole process and digitize it as well. Less chance of errors is there because quantity takeoff and other processes become digitized. The power of the cloud has transformed quantity takeoff and estimating processes fully integrated. Stay connected and tuned with us.
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