Estimating is one of the toughest points of a construction project, and that’s just the beginning. Getting a proper and accurate estimate can feel like the hardest job in the world. For the contractor, the successful outcome of a construction project begins at this point.
The construction industry is changing, and many contractors have had to find ways to do more with fewer resources and personnel. They have also had to find solutions, such as a range of cutting edge software solutions to improve their efficiency levels and stay ahead of the pack.
Every contractor understands the importance of estimating in building construction. Whether you are constructing a new commercial mega-building, renovating a building or undertaking any kind of building project, you need an accurate construction estimate to complete a project successfully. Estimating in building construction is not as straightforward as it often looks. The project may have to incur tangential costs that run beyond materials or craftsmen. Therefore, inaccurate estimates may lead to loss of bids or project overruns that may cost the contracting companies huge losses.
Here are five useful tips that will undoubtedly help you produce more accurate estimates, and also win more bids;
- Only Bid for Jobs with a High Chance of Success
Don’t overlook this basic piece of advice. As part of your repertoire of skills, you need to have an ability to determine whether a job is worth bidding for or not. You need to know whether it is time to move on and put your time or resources onto other activities or bids. While putting in more bids increases your chances of landing more jobs, it doesn’t make sense to continue spending money and other resources on activities that have the least chances of success.
For instance, if a certain contractor is (with all other factors considered) always outbidding you in your market and they are now bidding against you in a particular construction project, it may be more prudent in certain circumstances not to put your resources on that particular bid. Don’t break your back trying to bid against them if you can’t be profitable at their bid level.
- Check with Your Materials Supplier for Insights
Always reach out for your materials supplier early on for insights and overall guidance. Having the right materials for the project is quite critical. However, rather than just a quotation, your materials supplier can also provide crucial insights into what materials would be ideal for your project. They can advise on which ones work better together and which ones don’t and what is best for the kind of budget you are looking at.
Involving the materials supplier early on in the estimating process will produce a long, beneficial collaboration that will be absolutely critical when it comes to bidding or actual construction time. By working together early on in the project, your supplier can act as an advisor and can also help you identify the right products to meet the design needs of your clients. He can also help you to maximize your budget and efficiency throughout the life of the project.
- Carefully Check your Subcontractor Quotes
Subcontractors are vital to any construction project. Therefore, if you are to get estimates in building construction right, you must also ensure you get the best quotes from your subcontractor and also lock them down when you get a good deal. You’ll have to go through all the same steps you undertook when evaluating all your other suppliers. Some takeoff and estimating software like Buildsoft Global even have subcontractor’s comparison modules that can assist with this process.
For better results, always get an apple to apple comparison of your preferred or available subcontractors. This way, you not only get the best rates, which will improve your bottom lines, but you also get to avoid all potential pitfalls. Never go with a subcontractor who provides a cost-plus bid. Instead, get a subcontractor who can give you a firm estimate based on the scope of the project. Only then can you provide a solid and accurate construction cost estimate.
- Factor in Project Risks and Their Costs
Takeoff and estimating software such as the Buildsoft suite of programs can be of great help with this. You have to consider all the possible things that could go wrong during the construction project. Define and consider potential mishaps and factor them into the cost and timelines of the project.
Of course, it is not easy to predict the future or precisely what is going to happen. Estimating in building construction has to work around a lot of unknowns. However, you can look into your previous projects and all the unknowns during the estimated time that ended up being profit margin killers down the line. Takeoff and estimating software can come in handy at this stage. You can then use this knowledge as a guide when estimating future projects.
- Have a Master Checklist, or Just Use Takeoff and Estimating Software
A master checklist can be incredibly useful to ensure you don’t forget the important steps and items. Planning is critical if the project is to stay on track or be successfully completed. An excel spreadsheet, complete with all the necessary formulas can help in the estimating process. Some websites even provide free worksheets that include formulas to aid the estimating process.
However, in construction projects, it’s so easy to forget small but essential aspects such as landscaping, hard-scaping, permits, and other details. It’s not uncommon to forget even some of the tangential costs that go into a project. But with takeoff and estimating software, you never have to worry about forgetting any detail.
Takeoff software such as Cubit Pro allow estimators to upload blueprints or to simply trace over them with pinpoint accuracy. They can then generate their takeoff and bill of quantities within half the time it would typically take, and with far greater accuracy. Cubit Pro has graphics capabilities to extract object properties and to also automatically generate automatic quantities from BIM models.
And since the blueprints change for any number of reasons, software adds extra flexibility when it comes to estimating in building construction. You can update your takeoffs in case of any changes, and all the changes will immediately update your estimate, and also keep a log of all the changes.
All constructions are unique in their own way, even when they have the same look externally. The approach is very different from, say, a manufacturing line where all products have the same cost. Each construction project estimate must be performed individually. Software-aided cost estimation will certainly give you an extra edge when bidding for projects.