Construction Estimating 101
The basics of construction estimating are easy to understand. During the preconstruction stage, the contractor will determine the materials and labor needed to complete each section. The contractor will then add a margin for profit. Ultimately, he will develop a cost estimate to submit to the client. The takeoff is a list of all the materials and labor required for the project. This list is used to create a bid for the project. Discover more
Proof That Construction Estimating 101 Really Works
A quality estimate helps you bill for work properly, communicate your intentions clearly, and avoid misunderstandings. Most disputes that arise during the construction process are a result of misunderstanding. A properly-done construction estimate will allow you to prove what you did, which is invaluable in today’s competitive market. It also provides a foundation for billing and communicating the intended cost of the project. By using an accurate estimation tool, you will improve your odds of winning projects.
Cost estimates are broken down into direct and indirect costs. Direct costs include materials, transportation, and markups. Indirect costs include labor and office support staff. These costs vary greatly based on market conditions, so it is important to make an accurate estimate. A construction estimate is a contract between the contractor and the client. After negotiating a contract, the contractor will prepare the estimate for approval. The revised estimate will be incorporated into the project cost baselines, reviewed by the client’s project management staff, and approved by the client.