It goes without saying that construction is an ever-changing sector. All its processes, operations, and techniques depend on new solutions in the niche and discoveries of humans. Project estimating is not an exception to these rules. For example, manual tasks are replaced with an automated approach for better and faster performance.
Tendering and estimating software is a thing for construction project estimating. It reduces risks in the context of human-factor errors and makes all the financial predictions more accurate. Nevertheless, the role of the project estimator is critical even now. Digital tools cannot absolutely replace people from this chain.
That is why it is necessary to pay attention to all the phases of the cost estimating process. There are 8 of them to take into consideration. Let’s take a closer look at each of these stages to understand their peculiarities and get helpful insights.
Main Phases of the Project Estimating Process in Construction
As can be seen, there are 8 main phases in the construction estimating process. Most estimators have the same challenging situations while paying less attention to this or that item. It is necessary to focus on all these phases to deliver accurate results and perform a profitable construction project.
Speaking about 8 stages, they are:
- Looking for the best project to bid on.
- Observing all necessary specifications.
- Checking building drawings of the project.
- Developing the estimate of the works.
- Analyzing the perspective of income.
- Creating the offer.
- Composing the agreement.
- Final analytical research and report drawing.
Of course, the most important thing is to choose a proper and interesting project. The factor of the right choice is similar to the lottery. If the project has strange owners or unrealistic tasks it is a failure from the beginning. Good luck is to dealing with an adequate client.
To understand all the tasks and nuances of the project it is required to study the project specifications. It is very essential to know as much as possible about materials, costs, landscapes, and so on.
Helpful Tips for Construction Project Estimators to Take into Account
High-skilled individuals realize that the drawings also should be studied properly. This helps to better imagine the future project with all its tasks. Calculate all basic quantities. Take notes and clarify everything you need to escape problems with misunderstandings later.
To estimate the entire project you have to estimate the expenses for supplies and salary. Determine how much it is possible to pay employees. Find the information about prices for materials. This data is key. Estimation can’t exist without these details.
The aim of any project among other things without any doubt is profit which is included in the estimate too. Don’t forget about the indirect costs of work. If you don’t think about them you may lose the profit at all.
Construction Agreements Matters for the Project Profitability
You are interested in the most understandable format of the project estimation. It has to be clear for general constructors and managers. If it is very difficult or chaotic it is going to fail, unfortunately.
There are several kinds of construction agreements:
- Firm Fixed Price or Lump Cost;
- Time and Material Cost;
- Cost Plus Cost.
The type the owner chooses depends mostly on the project size. Each contract type has its advantages and disadvantages. When a project is awarded, the scope of work may change in accordance with the design or budget. A project is always a flexible creature. So many factors influence the final result.
Systematizing the estimating process is much easier today than it was ten years ago. Use specialized professional computer programs. They help to minimize the time. Such software increases speed and productivity. Construction estimating is difficult work and a great responsibility. The project needs a quality accurate estimate to be successful.