There are a huge number of books, price indexes, manuals, opinions, rules of thumb, tools and spreadsheets published regarding the estimation of construction project costs. The goal of estimating construction cost is to have satisfied clients and a profitable business. However, it can also quickly lead towards loss of clients when estimates are too high or loss of money when estimates are too low. It’s no surprise why almost everyone wants to give their advice on the proper way to do take off quantities.
The Brutal Truth
What those thousands of manuals lack is the honesty towards construction cost estimating because there really is no universal ultimate guide. The primary cause for this is quite simple because the best way to estimate it will rely on the accuracy, efficient methods, and tools. It will also depend on your judgment and cost estimating experience, as well as the construction project itself.
Even if the methods can profit from the best practices and standards of cost estimating, every case has different experiences. The same notion applies if a project permits the rehash of other effective cost estimates. No two estimators have operated on precisely identical projects and no two contractors have the similar capabilities, track record, constraints or internal organization.
Achieving the Trifecta
The most effective construction estimating guidance that you require will have to be particular to you and your business. Nonetheless, there are definitive factors that always take part in every outstanding estimator’s process.
Estimating construction cost fundamentally revolves around three components: speed, accuracy and money. Speed involves your clients’ need for quick estimation that would take weeks for industrial and commercial projects. If the project is for a private building like a house renovation or extension, clients would agree on the primary estimation as long as they think it’s a reasonable cost.
Meanwhile, accuracy component consists of your precise estimation, which is the key to improving business. Do not provide your clients unpleasant surprises between your first estimation and the final amount they have to pay. When it comes to money, you just have to compute the costs, add your markup and submit the total amount to the client.
To be able to achieve all three components simultaneously, you will need a suitable construction estimating software or a small team of estimators.