Even the most well-established businesses sometimes find it challenging to get construction estimates right. This is primarily because no two projects are alike, and there is no shortage of pitfalls that can lead to increased costs. Here is what the experienced estimators at ADDMORE Services suggest for those looking to avoid costly errors.
Tip #1- Always Settle with Your Customers with Detailed Plans
A highly common—and huge — pitfall is when the client’s idea of the final project turns out to differ vastly from the one you had in mind. It is crucial to nail down every detail precisely with a good set of plans. Make sure they are actual plans, not just the drawings. This is because sometimes it is not enough to use basic drawn-up concepts that you and your client had agreed upon. Actual plans help highlight every facet of the project. Make sure the clients sign it off because not having such preventive measures in place can lead to expensive do-overs and a faulty reputation with the clients.
Tip #2- Utilize the Unit Cost Estimating Method
Estimation can be very time-consuming, depending on the method used. Some techniques involve listing every material, job, personnel, and required permit needed for successful project completion. Then, you will have to cost out each item, which can take very long to complete. The time frame can cost you the job if the client is unwilling to wait that long. Unit cost estimating is a much faster way of streamlining estimates without sacrificing accuracy, allowing you to provide clients with comprehensive estimates quickly.
Tip #3- Never Underestimate Labor Costs
You must consider more than just the hourly rates for the laborers. After all, your workers’ experience and qualification levels could make a difference in the number of hours they spend on a particular project. You must figure out the accurate hourly rate and identify tasks for which you will need to hire specialty craftsmen. The figure should incorporate the state and federal payroll costs, along with benefits and wages. ADDMORE recommends breaking down the expected labor costs and comparing them to similar projects’ costs per square foot to ensure utmost accuracy.
Tip #3- Maintain Healthy Working Relationships with the Suppliers
Material costs are tough to pin down as the prices often depend on the market conditions. Reaching out to reliable suppliers is important to get the right estimate each time, especially for large-scale projects. The supplier can alert you if the price of said material is expected to rise in the near future. This insight can save you plenty of dollars if you adjust it accordingly by catching it earlier.
Tip #4- Get Assistance from Experts When Needed
If you are looking for perfection, learn to delegate. One of the most common reasons behind wrong estimates is the lack of expertise. Whenever you need to create a highly detailed construction cost estimate for a project, outsource the work to expert construction cost estimators at ADDMORE Services.
Our team of reliable estimators will help ensure you never miss the mark when estimating project costs. The team will fill in the expertise gaps and help you streamline detailed estimates while simultaneously lowering the chances of encountering unforeseen costs as these estimates go through various quality control checks to ensure accuracy.
Besides accurate construction cost estimates, clients also reach out to us to learn about our offshoring and outsourcing solutions, including construction project management, takeoff estimating services, architectural drafting services, 2D and 3D CAD drafting Services, BIM services, Revit design services, Planswift estimating, Primavera modeling services, architectural 3D visualization services, real estate rendering, and more.
Schedule a consultation with our team to learn more. We are a reputable BPO company that offers a wide variety of cost-effective solutions to clients worldwide, mainly in the UK, New Zealand, the Republic of Ireland, the Middle East, Australia, and the USA.