Construction projects should have low to very high estimates, depending on the project. One of the biggest concerns with getting an estimate for any construction project is its accuracy. Below are some ways in which inaccurate estimates are avoided in any construction project.
- Use Construction Estimating Software
With the changing level of technology and the use of computers, contractors estimating software for commercial construction has become very common. Using this software allows a contractor to get several different estimates and find the best design that suits their needs. Estimating software helps in identifying the critical path. As a result, contractors not only get more accurate estimates but also make sure that the company has enough money and time to complete other additional work that is needed for their project.
- Gathering a Range of Values
In several cases, the best way to avoid inaccurate estimates is to gather a range of values. To do this, as a contractor, you need to ask other subcontractors for price quotes from several different vendors and choose the one that has the lowest price. The contractor must also ask for several price quotes from various suppliers and choose the one with the lowest cost. This process will ensure that you get accurate estimates for your project because choosing a single value that is very far off from what is realistic will only cause problems later. In addition, this will help in providing accurate answers to clients.
- Using Expert Advice
This is especially true when dealing with very large projects and big companies that have several experts working with you. Experts will ask questions about your project to see if they can provide better suggestions. This will help in finding the best and most cost-effective alternative shortcut. Your colleagues, engineers, and architects are great sources of advice because they have other experience working with other contractors. A great way to get professional estimates for your project is by asking them to give you several options and choose the best one.
- Use Bottom-up Estimating Strategy
In a bottom-up estimating strategy, the one completing a specific task is the only one to provide an estimate because, as much as an expert offers an estimation, the actual values will differ based on the person who will execute the task and the real-time that will be needed. In addition, it will also account for unplanned activities that the actual builder may need to perform. So it is important as a contractor to get to know your staff’s skills and qualities well to estimate the time they need to complete a specific task.
- Considering the Quality of Building Materials
Construction estimation highly depends on the quality of cement, which is why it is very important to consider this factor in estimating the actual cost. In the case of inferior building materials, the basic construction costs will also increase due to poor quality. This not only results in additional expenses but also increases risks.
- Cross-Checking With Previous Projects
To ensure accurate estimates, you must get several estimates on previous projects done by other contractors and compare them with your project estimate. This will help you understand the time and cost needed to complete your project or rent equipment like Boom & Bucket’s excavators under $25k. However, it’s good to refrain from using other contractors’ estimates because it may not be possible to get the same quality of building materials and labor force. You can also check the market’s current pricing on the internet. A quick search for a term like “excavator for hire” should already provide a list of prices that you can compare.
- Involve a Finance Manager
When making estimates, you must involve a finance manager, who will ensure your banking regulations and taxes are well put together. Suppose you are making a project estimate and need to put together the budget. In that case, it will be harder to estimate actual project construction because you may have yet to include some necessary and additional costs in your project. Therefore a finance manager will prepare a cost sheet to ease your calculation task.
Generally, avoiding inaccurate estimates is possible if you choose the right strategy. The most important part is to have a completely accurate project estimate and provide the client/owner with the best possible solution. Having estimates for any construction project is very important, especially if it is a large-scale project or you need a loan for your business.