A construction estimate is a forecast that determines how much money a new building will require. A build estimate is a must if you plan to successfully complete a refurbishment project or build a commercial structure.
With accurate insulation estimations, you will have happy clients, repeat business and a healthy profit margin. It eliminates unpleasant obstacles like cost overruns and steers your company towards a better, profitable future. The success of a project hinges on the accuracy of its estimate.
A successful insulation project demands a real-time analysis of material cost, labour and other expenses. The only way to achieve this is with precise insulation estimations.
In this blog, we’ll look at the importance of construction estimations and the need for their accuracy. While I may refer to insulation estimating for most cases in this blog, the points made here hold good for all facets of build estimates like m+e estimating and so on.
What is the purpose of an estimate?
The purpose of insulation estimation, or any estimate for that matter, is to try and measure the quantity, price and value of the resources needed to finish a job within the scope of the project.
To arrive at the total expected cost, an estimator must split the scope of the project down into manageable portions. They will use all the project related information, along with their experience, skills, technology and industry expertise, to arrive at a total estimated cost.
Accurate build estimates give a realistic idea of the budget. They help in proper project planning and can also help to get new business from potential clients.
Why do your estimates need to be accurate?
As mentioned earlier, a project’s success depends on having a realistic budget. An accurate insulation estimation serves as the foundation for a successful, financially sustainable project for both owners and contractors.
Making accurate estimates can have a number of benefits like it:
Improves Plans: If you can precisely predict the functions and resources required to complete a job, you may be able to process and produce an accurate insulation estimate. You can then easily create a work breakdown schedule, assign work to personnel, and stick to estimated timelines enabling you to complete the project successfully.
An expert estimator may be able to identify flaws and omissions in the plans and specifications or scope gaps between trade subcontractors while making accurate estimates.
Reduces loss from risk: Some factors, like poorly scoped work and inflation, lead to overruns in costs and time. Accurate estimates help protect your profit margins, by accounting for the anticipated expenses. Expert estimators may also help you cushion the blow of unforeseen events.
Estimation can point out opportunities for value engineering, which entails modifying a design, material, or construction method to reduce costs without compromising functionality or quality.
Allows for Better Bid Comparisons: With accurate insulation estimations, clients can assess contractor bids more objectively. Owners can use these estimations to figure out how much profit margin a contractor includes in his proposal. Once they have figured out profit margins, clients can assess if bids are reasonable and realistic.
Reduces the number of variation orders: Your project will have fewer surprises, requests for information (RFI), and modification orders if you have a solid cost estimate. Keeping an eye on the schedule and budget will be easier with a realistic insulation estimation.
Improves resource management: With a better understanding of the time required for each job in a project, you can ensure the availability of skilled labour – if needed, detect resource gaps, employ more people as and when required and confidently take on new projects.
Helps in professional growth plus improved business: When clients understand the “why” behind the estimates you have proposed, they are more likely to trust your knowledge and expertise, resulting in stronger working relationships.
Accurate estimates enable the project to be completed with the least amount of surprises. When projects get completed on time and within budget, you will have a satisfied and happy clientele, which means repeat business and referrals.
What should a Build Estimate Include?
(i) Direct costs: are those that are directly related to the task like project labour costs, materials, equipment.
(ii) Indirect costs: are expenses incurred by a contractor or a corporation as a result of its operations (such as overhead, technology, permits, surveys, utilities, office space, insurance)
What to expect when you contact an insulation estimator:
Working with inexperienced estimators may jeopardise your company’s reputation and its future. It is why you must ensure that the estimator you hire has sufficient and relevant experience.
You can also consider outsourcing your estimating to a professional insulation estimating service, whose sole responsibility would be to create a sound estimate for your project.
Here are some of the qualifications you should look for in a qualified building cost estimator:
- Experience in the construction field and complete understanding of the cost of materials, overhead expenses, material lead times and any other expenses
- An in-depth understanding of construction drawings is required.
- A tried-and-true strategy for generating reliable estimations.
- Knowledge about the latest building materials, standards, industry trends, and everything related to insulation and construction in general.
- The ability to evaluate expenditures precisely and accurately
- The ability to gather, classify and analyse important information.
You can find software for estimating projects yourself here. The UK’s leading software provider offers us very favourable discounted rates.
How can we help?
Here at Chase Estimating, your estimates are handled by a team of diligent estimators who possess all the skills and expertise you would seek in an estimator
With over 50+ years of combined experience in the field of construction and a tried-and-tested estimating process using state-of-the-art estimating software, we will help you win the bid, by providing reliable and accurate M+E and insulation estimation for your project.