Cost Estimating: The Essentials

Cost EstimatingWhen you need to make a cost estimate for a construction project, it is important that your estimates are right on the mark. Estimates that turn out to be too low may cost you a considerable amount of money. Estimates that are too high, on the other hand, may cost you your client.

The Essentials

Now, there is no perfect formula for cost estimating. Estimates will always be dependent on how efficient and accurate processes and tools are; what the construction project is; and your experience and judgment in cost estimating. There are a few things, however, that you can learn in order to improve your cost estimating.

The Plans

One of the skills you can learn to improve is plan reading. Of course, you must know how to read construction plans, but you must also know how to read them well. Needless to say, you must also have a quality set of plans that you can work from.

The Trifecta

Cost estimating ultimately revolves around three things which are funds, accuracy, and speed. Funds refer to the constructions costs with the addition of your markup. Accuracy is fairly obvious with regard to cost estimating as it determines your success as a contractor. Finally, speed pertains to the time limit established by the customer.

The Software

No matter how short a time the customer gave you on your cost estimating, you have the help of cost estimating software like eTakeoff, LLC that can quicken the process. When looking for software that you can use, you can look out for features such as tools for construction takeoffs, cost databases, and estimate calculations.

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The Estimator

Conversely, you can work with cost estimators that know how to use the software for cost estimating. They can provide the added value of a professional to your estimating process. They can also cover for some of the lack that software may have.

To be successful in your cost estimating, you can simply remember that no two methods can work on the same project. You simply need to gain experience.