Accurate cost estimating is one of the most crucial aspects of the construction industry. Here is an account of the most common construction estimating mistakes and the ways to avoid those and why an estimating service can help you.
An Estimating service is one of the most crucial aspects of construction. Especially in today’s economic scenario, construction estimating is extremely important to sustain a business in the construction industry. It gives a financial understanding of the project and has a pivotal role to play in bidding for tenders and contracts. An Estimating service can help you here.
Construction estimating involves the entire construction planning process from the financial aspect. It is about accurately calculating the costs that will be involved in a project. This process includes – labour cost, materials cost, resource allocation.
All in all, it is about overall cost estimation while considering potential hurdles that the project might face in due course. An Estimating service can do this.
From the builders’ perspective, accurate construction estimating is the key to winning a tender, and ultimately delivering the project within the estimated budget and time-frame. This is easy with an Estimating service.
However, builders often end up committing a few general construction estimating mistakes that eventually hamper their project. Here are the 4 Most Common Construction Estimating Mistakes which you can avoid with an Estimating service.
4 Most Common Construction Estimating Mistakes
- Miscalculating Labor cost
Labour cost is the most expensive part of any construction project, and it is also the hardest aspect of construction estimating. There are several moving parts when it comes to estimating labour costs accurately. These costs depend on the number of labourers, their pay scale as per experience, efficiency, etc. Our estimating service can help here.
Hence, labour costs might vary from project to project. It might also change during the construction process, depending upon factors like diminishing/escalating efficiency, unexpected halts or delays, etc. Though it is challenging, try to estimate labour costs based on the average man-hours that should be required to complete a particular task. An estimating service can simplify this for you.
- Inaccurate Risk Analysis
No matter how accurately you estimate the costs that might be involved in a construction project, there might always be roadblocks along the way. Potential hurdles might include – weather delays, resource allocation problems, resource procurement issues, supply chain issues, etc.
Construction estimating always requires a buffer allot to potential risks, and inaccurate risk analysis is one of the most common construction estimating mistakes. It can ultimately lead to significant financial losses that can be avoided by employing an estimating service.
- Making Wild Guesses
If you are a non-professional construction estimator, then making wild guesses about potential costs can be the biggest construction estimating mistake. Always make sure that you do not estimate a project’s cost based on past data.
Every project is unique in its ways, and the golden rule of construction estimating is to treat each of those according to the latest and most relevant data, which our Estimating service does. For example, suppose you are estimating for a construction project in Europe. In that case, you cannot make guesses based on your experiences or data from a project in the US, an error our estimating service won’t cause you.
- Miscalculating Materials Cost
Another major constriction estimating mistake is miscalculating the costs involved in buying the materials that will be required for the project. Costs of materials might change at any point in time during the project, based on changes in supply and demand. Hence, such miscalculations can eventually hamper the overall cost estimation process. This can be avoided with our estimating service.
How to Avoid These Common Construction Estimating Mistakes?
Based on the above points, the following factors will help to avoid the most common construction estimating mistakes.
- Developing strong relationships with suppliers and suppliers and manufacturers
- Labour cost estimation based on the average man-hours.
- Accurate risk-analysis based on factors like potential inflation, forecasting, etc.
- Use of advanced estimating software
- Use an estimating service.
If you are a builder or constructor, accurate estimating construction costs may be quite a challenge. Moreover, if you are not a qualified professional in this field, it may consume a lot of time. Hence, you should focus on the engineering aspect of construction, and leave the cost estimation process to a pro estimating service which can help you with accurate construction estimating.
Conclusion – Estimating Service
The Estimating Group Ltd. is a well-known and credible construction estimating service. We provide an accurate estimating service to small and medium businesses, using our advanced and proprietary estimating software. We offer professional online estimators and quantity surveyors to help you with your construction estimating needs.
Contact us at [email protected] to schedule a free consultation.