Estimation is a critical preconstruction job. To get a 100% accurate estimate is a challenge in itself. Estimate too high and you are likely to lose the bid. Estimate too low and your funds will deplete soon resulting in a huge loss. Yours or your team’s ability to arrive at a sound, competitive estimate is, therefore, the crucial first step for a successful building project.
While technology can assist you in some aspects, here are some tips that can ensure that you are on the right path to get a realistic construction estimate.
Detailed and Accurate Take-off:
Run your project through a fine-tooth comb. Analyse every component of the project in great detail. Consider all the materials required, the number of hours needed to perform the task, the essential equipment and anything else necessary to complete the job. Break down the project and determine the cost of every part to ensure that you don’t miss anything when making an estimate.
The more accurate your take-off estimate is, the more realistic your construction estimate will be.
Prepare A Master Checklist:
Prepare a master checklist wherein all the less obvious, but important steps like building permits, landscaping and other soft costs are listed out. These overhead charges if neglected will significantly cost you time and money.
Deliberate on the workforce required to complete the project and the hourly rate at which your crew members and speciality labour will work. Analyse in detail by breaking the cost down to normal wages and benefits. Also consider the experience level of your workers, as they can help determine the hours your crew spends on a project.
Pull up the details of similar projects and compare the project costs per square foot to give you a better idea of the labour cost estimate.
Assess Possible Risks and Factor In Their Costs
Risks are a part of every project. When you start the estimating process, consider all the factors that could negatively impact your project during construction. Factor these risks into the cost and project timeline. You can look into previous projects or count on your experience, to help identify and mitigate these risks.
Fluctuations in Material Pricing
Many factors can affect the cost of materials. Its demand to supply ratio, lead times, material availability, import factors and more. The surge in material pricing seen due to the ongoing pandemic isn’t likely to be going down soon either.
Consider the fact that material costs will change and closely monitor the factors that affect the pricing when estimating costs. While procuring any material always get quotations. Take into account the delivery charges and other fees that you may incur. If the items you need to buy will need storage rental or maintenance costs, and be sure to factor them into your project estimate.
Determine Equipment Needs
Equipment can be one of the most expensive investments in a construction project. After you plan the project in full, choose the equipment you will need to complete the tasks. Define the type, quantity and size of equipment. Ponder over the renting and buying options. If you already have the equipment, then consider the repair and maintenance costs, while making an estimate.
By using these proactive estimating measures to scope and plan your project conditions, you can significantly improve your estimating practices, reduce risks, and increase your project success rate.
Alternatively, you can also consider outsourcing your estimating jobs. Outsourcing estimation relieves you of any estimating related worries so that you can concentrate on other important aspects of your project.
At Chase estimating, we provide you with a realistic construction estimate for Mechanical, Electrical and thermal insulation projects. We utilize our refined skills, technology and our years of experience in the construction industry to give you a bespoke build estimate.
Our diligent team works around the clock until you have all the necessary information to help you put your best foot forward and win the work. With exclusive discounts from leading estimating software providers here in the UK that are only available to us, please get in touch with our team today and we assure you of a good experience with us.
Email us your request at firstname.lastname@example.org or call us at 01630417161. We will promptly get back to you.