Top Tips For Efficient And Accurate Construction Estimates

When it comes to construction, there aren’t too many things worse than inaccurate construction estimates. It could lead to your termination. It could also win you a bid that becomes a money pit.

While that might all sound stressful, there is a solution for your construction estimating needs. Whether it is a construction estimate template or even a construction estimate app, there is a solution.

There are also helpful tips that will help you create accurate construction estimates in no time. Continue reading to learn about the top tips for efficient and accurate construction estimates.

Create Job Templates for Each Job

There are several ways to help yourself from missing anything when you start building your estimate, but not many are better than using job templates. The template should have all the potential line items that could be found on the type of project you’re working on.

It is also possible for subcontractors to set up their own construction templates for their projects, though theirs will have a lot fewer items than your company’s job template.

The best approach is to have your job template be focused on the particular scope of work you’re providing on the project. Sometimes that is just a general breakdown of the labor and building materials that you need.

For some professions like electricians, their job template could be much more complex due to all of the equipment that they need. In addition to materials and equipment, be sure to consider bond costs and insurance limits in your template.

Look at Previous Project for Construction Estimates

A great way to get an idea of an accurate construction estimate is by looking at previous projects. Both the estimate and the actual cost are valuable to have. They can help you get a better idea of what your next project will cost you and how to stay within the project budget.

By learning from your successes and failures you’ll be able to become the most accurate construction cost estimator possible.

A good starting point is to find projects that similar in both size and scope to your previous ones, as they’ll be the easiest to create estimates for based on your previous projects.

A great way to know that this is beneficial is if you see a project that is similar or the same as the one you’ve recently done but it is estimated to cost 50 percent more than what it cost you to complete it.

While no two construction projects are ever the same, similar projects give you a baseline to work off of for your construction estimate.

Define Project Risks

After you’ve started the estimating process you’ll need to consider all of the things that could go wrong during the construction project. Start with considering mishaps and begin with factoring them into the estimated cost as well as the timeline.

While you can’t predict the future, you can budget for it so that unexpected events don’t hamper or derail your construction project. A great way to do this is by looking at previous projects and find commonalities.

You can also use the data and information from those previous projects to find things that you didn’t budget for that ended up costing you a lot. This will help you get an idea of how much you need to estimate for your next project.

Know Your Labor Costs

One of the most profitable parts of a construction project is providing your own labor to get the job done. In order to ensure that you’re making a profit, you need to determine how much your labor costs you. You should also know how productive your labor crews are.

Construction estimator software like CostCertified is a great resource for helping to determine your labor costs on a construction project. This helps to accurately estimate how much your labor will cost as well as how long the project will take.

It is important to know that labor costs end up being a lot more than just the hourly wage that you pay your workers. The company also has to pay for taxes and employee benefits as well as retirement and union contributions.

Some employees might also have a company truck or cellphone. In order to get an accurate read on what your labor costs you, you need to add all of these expenses together over a period of time.

From there, you’ll want to divide the total by the number of hours worked. This will give you exactly what it costs for your labor and give you an idea of what you need to charge for your services in order to make a profit.

When it comes to productivity, it is important to know that no two people work at the same speed or with the same skill. There are also outside factors at play like poor weather and lost construction tools as well as personal issues.

These issues play a part in productivity and need to be accounted for when estimating the timeline for the construction project.

Determine Equipment Needs

Once you’ve planned a full project you’re going to figure out what equipment is needed to get the job done. Start by considering the details of the equipment like its size and capabilities to make sure that it matches your needs.

There is no greater way to ensure that a construction job is done efficiently than getting the right equipment for the job. Another thing you should do is consider whether it is cheaper to rent equipment or use your own for the project.

Start Creating Accurate Construction Estimates

Construction estimates are the most important step in getting a construction project off the ground. They turn it into a reality. There are many ways that you can ensure an accurate construction estimate. It might be through a construction estimate template or through construction estimating software.

It is important to determine the costs of your labor as well as if you need to rent the equipment needed to complete the job.

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