Managing projects with unique requirements and features are one of the important challenges in the construction industry. Probably, every construction project deals with the same key elements such as schedule, scope, and budget. But, what makes the project run smoothly? Undoubtedly, it’s the accuracy of the construction cost estimation.
Definition
The basic principle of forecasting the overall construction cost of a structure is defined asconstruction cost estimating. Project owners, builders, and remodelers determine the project’s scope, budget, and feasibility with the help of cost estimation. Further, practicing proper cost estimation prevents clients from overpaying and contractors from losing money. BuildMacro offersconstruction estimation software that provides the utmost accurate cost estimation of the project.
Importance of Construction Cost Estimating
The initial construction estimate can’t match the final cost, practically. This does not nullify the usefulness of construction cost estimating. Here’s the importance:
- It assists the builder’s ability to determine the potential profit of the project
- Gives clear idea to project owners regarding the feasibility and suitability of the project
- Helps in the financing of the project
- Helps in decision making for materials required and overall project’s cost
While estimating the cost, it is important to have a set of data. These data include various components of structure, types of material, et cetera.
Benefits of Construction Cost Estimating
The foundation for the development of a work schedule is cost estimation. Whether a task accomplishes its objectives is determined by the accuracy of an estimate. The following are some of the benefits of cost estimation:
- Efficient Planning: For accomplishing a plan, scheduling accurate tasks and subtasks is mandatory. The more efficient the cost estimation, the better will be the planning. Additionally, you can develop a work breakdown structure ensuring your project team meets the deadlines. Besides efficient planning, also schedule project tasks easily with BuildMacro.
- Resource Management: Hiring proper resources is one of the important segments of construction cost estimating. Improper estimation of the project may lead to hiring more resources than required. Ultimately, resulting in unnecessary costs. One can minimize these gaps with proper estimation. Hire resources as needed and take up jobs with confidence.
- Higher Profit Margins: It’s impossible to finish projects within the budget that too on-time especially when having poor planning and risk of unexpected events. What if we have exact planning expecting various costs in just one account? Well, it may not only help complete our project within budget and on time but also secure some increased profit margins.
- Good Reputation: Being a customer, how does it feel when a builder misses the deadline and postpones the possession? It’s one of the worst feelings. But, ever noticed – Why does this happen? The reason behind this is an inaccurate estimation. BuildMacro offers construction estimation software helping builders in finishing their projects on time and within the budget. Also, provokes stronger relationships with the client, leading to the successful repetition of business.
Components Improving Accuracy
As discussed earlier, inaccurate construction cost estimation may make you lose a bid, or else you win some but lose money throughout the project. Below are some components to be focused on for better accuracy:
- List down every job
Listing all jobs consisting of labor, materials, controls, fixtures, etc. ensures you don’t miss out on anything while developing construction estimates. Try to be flexible with the addition and removal. - Accurate take-offs
Take-offs are the main key point for improving accuracy. Not only have this but take-offs play a major role in the project’s success. Get your accuracy improved without printing anything by using a take-off software like BuildMacro. - Check formulas
Mathematical errors are most embarrassing while preparing a cost estimate. Thus, check your formulas once before you come out with the outcome. Fortunately, you now don’t have to work with dozens of formulas. BuildMacro is providing construction estimation software that provides accurate estimates with the help of predefined formulas. - Countercheck subcontractor list
A few times subcontractors may miss part of their scope or forget to note it down altogether. Check their proposals precisely before heading further.
Conclusion
Accurate estimating requires time and patience, but it is essential in every project management position. First and foremost, one must understand the fundamentals of estimating and investing in the appropriate resources, since this defines a company’s success or failure. An accurate estimate reduces the possibility of disastrous financial results in a project.