A Closer Look at Cost Estimation in Project Management
Construction project managers typically play an integral role in ushering the construction project, all the way from inception to its completion. Project managers have a multitude of responsibilities and perform several duties throughout each stage of the project’s life cycle.
While every stage of the construction project management is crucial to its success, perhaps no stage is as critical as the planning phase. It establishes the framework, timelines, budget, and scope of the project.
The budget dedicated to any AEC project potentially impacts almost every facet, which means cost estimation is one of the most critical tasks performed by a construction project manager. An inaccurate cost estimation means poorly designed budget plans, which can lead to unrealistic expectations and improper allocation and may result in a potentially failed project.
Cost Estimation: A Brief Overview
Cost estimation is crucial for putting together a realistic budget while counting all the necessary costs, including labor, materials, and more. The main aim of every project manager, apart from the successful and timely completion of a project, is to ensure it is completed while minimizing costs and maximizing the scope and quality of the project.
Cost estimation in project management involves forecasts about finances and other resources required for a project’s completion according to the predefined scope. A thorough cost estimate typically includes all indirect, direct, and overhead costs.
One of the leading reasons for cost estimates is to determine whether the project will receive an initial green light. Once the project receives a go-ahead, cost estimation helps define its scope. In an instance where cost estimation comes out to be unreasonably high, contractors might pare down the construction project to fit their budget or try securing additional funding to manage all affiliated costs needed to keep the project in motion.
Contractors typically have a lot on their plate, such as keeping up with timely bids to secure new and better projects in order to make the business profitable and ensure all workers on payroll can be paid on time. This means they often have little to no time to spend on comprehensive estimate plans, resulting in costly mistakes or the project backfiring altogether. Here’s an alternative.
Outsourcing Cost Estimation To Reliable Companies
- According to research, outsourcing means you won’t need to hire additional staff or bear the overhead expenses. This makes outsourcing cheaper than having an additional in-house estimator.
- Contractors don’t have to miss out on bid dates, which results in your company’s seamless growth as you now have the opportunity to bid for more projects and boost your bid-to-win ratio.
- Outsourcing enhances efficiency and provides scalability to a business and enables contractors to complete the same task or project in a shorter time while giving them ample free time to focus on other core areas of the business.
If you are part of the AEC industry and want to gain the myriad benefits of outsourcing construction cost estimates, get in touch with the proficient team of experienced estimators at ADDMORE Services.
We offer clients estimates, scalability, and direct communication for interior fit-outs or projects in the AEC industry and reliable take-off estimating services at affordable rates.
Traditional estimates involve a lot of guesstimating, but our highly skilled personnel can make the process a lot easier, faster, cheaper, and eco-friendly!
Our leading team is well-versed with the best practices of managing and executing successful cost estimation. We also optimize efficiency and ensure quality control with reliable digital estimating software to provide PlanSwift house estimating and on-screen take-offs.
Reach out to us to find out more about our pricing solutions. Our top-notch services are available for clients globally, but mainly in the USA, the UK, Republic Of Ireland, Australia, New Zealand, and The Middle East.