The importance of construction cost estimating

Estimating construction costs accurately relies on many factors. It’s a necessary process and is what underscores the cost of construction projects. The accuracy or inaccuracy of a construction estimate can make or break a business’ profitability. However, the factors involved can complicate the process and result in a lot of risks, whether from material price fluctuations to uncertain labor costs.

Construction material price fluctuations directly affect the total project cost. While calculating estimated costs, you want to make sure the cost data is as accurate as possible. We have integration with dealers they update offer cost data in real-time to ensure you are always construction estimating as accurately as possible.

By using actual costs, as opposed to average cost, you improve the efficiency and accuracy of your cost estimate process and stay ahead of the competition. No one can afford construction cost estimates to end up costing the business money. Every cent matters. Making sure your actual construction costs match your cost estimates ensures you are watching every penny.

Creating an accurate construction estimate takes practice, skill and reliable data because each job has different variables. It remains one of the most challenging yet most important skills in construction. A recent study by Quickbooks determined that just two or three inaccurate estimates can be detrimental to a business.

Construction Cost Estimation Challenges

Some risks in the construction cost estimating process can adversely affect your bottom line, like overestimating and underestimating construction materials costs and administrative costs.

Overestimating: results in the owner or customer paying more, or you risk having an inflated price prevent you from winning the job in the first place;
Underestimating: puts you on the line to either eat costs or lose the confidence of your customer.

Tips To Create A Highly Accurate Construction Cost Estimates

Construction cost estimates are among the most critical components of your business’ profitability and winning new projects. It’s essential to be as accurate as possible. It involves calculating various factors, including material and labor costs, subcontractors, equipment, and markup. Here are a few tips to create an accurate construction cost estimate:

Material Cost

You probably have a pretty good idea of your construction material cost. However, the changing supply and demand within the market throw off an estimate by the time actual construction commences. Working closely with your suppliers is critical as they have a pulse on the types of materials that might work best for your project.
Labor Cost

Perhaps the most difficult expense to estimate is labor, with more than a third of respondents to a Quickbooks survey admitting to best-guessing rather than using hard data to calculate labor costs. It is the most expensive of all your project costs. You will be responsible for wages, payroll taxes, benefits (if applicable), etc. There are a variety of calculations to help assist the labor cost that best suits your needs
Assess Risk and Build in Contingencies

Mitigating risks and building in contingencies is vital to note. Things don’t always go as planned, and you must plan for them to make sure you recoup your costs.
Accurate Takeoffs

A complete and correct takeoff lays the groundwork for the best estimating process by determining solid material quantities for the project. Using software to complete a takeoff increases accuracy by reducing the human error present when completed manually
Site Visit and Pre-Bid Meetings

From small to large projects, it’s essential to meet with the owner or customer because all job sites are different, even if the project is similar in scope to others you’ve performed. From road access to the amount of space to maneuver, it’s crucial to get the lay of the land.

Today many builders, remodelers, and contractors, plumbers use construction cost estimating services to lessen the chance of errors and the under or overestimating construction costs. Building construction cost estimating service is a key part of highly accurate construction costs and construction project management. It helps with accuracy, allows for greater collaboration, and means tasks are done faster.

Process To Get Construction Cost Estimate Report

Here I am going to share some steps to get your construction cost estimate report.

You need to send your plan to us.

You can send us your plan on info@estimatorflorida.com
You receive a quote for your project.

Before starting your project, we send you a quote for your service. That quote will have detailed information about your project. Here you will get information about the size, difficulty, complexity and bid date when determining pricing.
Get Estimate Report

We do construction cost estimating and prepare a detailed report for your project. At last you finalize the report and finish the project.