NEWS

Estimating the Cost of an Estimate for Construction

Whether you are renovating an existing building or starting from scratch, the budget plays a massive role in any construction project. Here’s what you need to know about determining an accurate estimation of the costs involved in construction and how to make sure that your budget remains on track.
 

The estimating process


Before you can start the estimating process, you need to have a thorough understanding of the scope of work involved in the project. This goes beyond the scope outlined by the architect and engineers involved in the planning but will also need to include field-specific scope. This means factoring in elements such as weather, security, environmental protection, and more, as well as the means and methods that will be used to complete the work. Scoping the construction requires in-depth knowledge of the construction process and the ability to think like a contractor. This is where a construction consultant will be invaluable.

 

Once you have determined the scope of work, it is time to quantify the project. This involves converting scope to quantities, creating a list of required materials, and then obtaining costs from subcontractors, vendors, suppliers, and other entities. Obtaining costs for materials, labor, and equipment. However, contractors must all factor in the indirect costs associated with the project – including labor burden requirements such as social security contributions, taxes, insurance, and more. Many people find that developing a database for subcontractor pricing is highly beneficial and is a document that can easily be amended should any costs change.

 

As many project decisions are based on cost, a major estimation error can have serious consequences. Both project owners and contractors are affected when construction costs are underestimated, and someone will have to take responsibility for the extra expense. Owners may end up spending more than budgeted or to complete work with reduced profits or even losses. Fortunately, hiring a construction consultant can help avoid this scenario.
 

Why hire a construction consultant?


From architects to contractors, a construction consultant bridges the gap between all other parties involved in your project. With your best interests in mind, one of their key responsibilities is to break down any communication difficulties between the parties to ensure that the project runs as smoothly as possible. They have the ability to take on multiple job positions at once and whatever they are doing, they are specialists in their field, able to help all other construction professionals accomplish their task objectives. Your construction consultant can even help you to find the right contractor by providing you with advice on what type of construction contractor you should hire.

 

When it comes to estimating the cost and budgeting your project, a construction consultant is invaluable. Their extensive experience means that they understand costs for things like material and logistics as well as labor rates. This knowledge means that your consultant will be able to tell you if your estimates from various suppliers and contractors are fair and accurate and help ensure that you aren’t being taken advantage of. This is especially important if your build encounters unforeseen circumstances. It is impossible to be 100% prepared for the realities of a construction project, and any sudden changes in site conditions or shortfalls in important building materials could cause issues. Your consultant can help you to navigate these hiccups and keep your build and budget on track.

 

Your consultant – who works with approved vendors on a regular basis – can negotiate discounts on your behalf. Bypassing these savings onto you, they can help you to keep the costs down on your project. They even supervise the schedules of your project so that they stick as close to the agreed timeline as possible, which reduces the risk of your build over-running and racking up additional costs. In short, your construction consultation will help your project come in as close to the budget as possible.