Construction cost estimating refers to the process of predicting the possible costs that may be incurred to undertake a construction venture. Contractors and construction companies need to obtain the correct estimates to be able to bid with a reasonable price and to avoid going over the cost budget set for projects. Here, the following basic estimating techniques have been identified as some of the most commonly used in construction:
Types of Construction Estimates
Construction estimates can typically be categorized into three main types:
1. Ballpark or Budget Estimates
2. Square Foot Estimates
3. Detailed Unit Price Estimates
There are various kinds of estimates which are needed mainly based on the phase of work and the level of design that has been achieved. Now it is appropriate to better understand each one of them.
Ballpark and Budget Estimates
When there is still no detail or specification related to a project Construction Estimator will give an approximation of costs to get a general idea of the budget.
These estimates rely on very minimal information; the type of building and location only. Expected construction costs, as primary costs, are normally calculated per square foot of the building area.
While not necessarily precise, these numbers allow decision-makers to get a starting point for planning before committing more resources to architecture and engineering.
Square Foot Estimates
When finer details of the project are defined, using square foot estimating is a fast way of adjusting the cost.
Estimating Services can develop a more accurate per-square-foot estimate by taking into consideration some of the other elements such as the size of the building, the type of construction, the quality of the finish, and the location of the building.
This is achieved with plans for the layout of the floors but does not necessarily have to include construction drawings. They’re most accurate within a plus or minus 20% of square footage.
Detailed Unit Price Estimates
When it comes to the design development stage where specifications have been determined, Freelance CAD Drafter uses a unit price estimating method to make more accurate predictions.
Unit pricing is the method of averaging the amount of money that is spent on labor, equipment, and materials for each component of construction work. These are then summed to give the total costs; this is done by counting the number of each item from the drawings and then multiplying by the unit rate.
Due to the level of detail vested in this type of estimate, they can be 95% accurate making them ideal for budgeting at the pre-construction stage.
Tips to bear in mind when undertaking Construction Estimating Projects
Some key factors that Construction Estimating Services providers consider that can impact pricing include:
- Site conditions
- Geographical location
- The availability and options for storage.
- Labor costs in the area are one of the factors that may be inhibiting the growth of the manufacturing industry in the region.
- Design complexity
- Construction techniques required
- The quality as well as quantity of the materials
- Project scheduling
This insight into these factors will assist in arriving at the expected cost estimates that are closest to the real expected cost.
Top Trends Within Construction Estimating
However, new technologies are now making some of the traditional estimating activities more efficient and accurate through more technological tools in the process.
Estimating services are adopting tools like:
- Autodesk’s Quantity Takeoff to perform a fast analysis to gain the required material quantities from BIM.
- Companies such as Chainflux offer analytics solutions that are fully powered by Artificial Intelligence.
- There is Sage Estimating which is a tool that helps in cost estimation.
Such technologies when integrated with human intervention, make it easier to get total, more accurate estimates in less time possible.
Some of the most important points that have been covered about construction estimating are as follows:
Therefore, one can conclude that cost estimates in construction are a critical factor that guides decision-making on funds and assets. As the design advances, calculations become more accurate concerning the costs.
This is a testimonial that while new technologies offer many opportunities for improving efficiency, the experience of estimation specialists cannot be overestimated. When a contractor knows the basics of various estimating methods, they can optimally cooperate with Estimating Services and Estimating Companies to obtain accurate estimates that will be beneficial for setting up the project.
Conclusion
Accurate assessments serve as the basis for intelligent bidding and making a profit on actual project implementation. Budgeting starts with the construction estimation service providers; it helps them to get an essential edge in creating estimations that will help acquire contracts.
As the competition in the industry rises, stressing the most versatile Estimating Companies and the need to adopt better-estimating practices, more enhanced estimating practices will be essential.
