Cost estimating is an important part of construction as it forms part of the Construction Estimating Services project procedure. A dependable construction cost estimate assists clients in planning correctly, finding funding, and preparing expectations. This tutorial will offer a brief insight into how cost estimates can be made while constructing building construction projects.
Know the Project Details
The first aspect that is integral to construction cost estimation is the collection of any information regarding the project. Be sure you understand key parameters like:
- Location- costs may differ greatly depending on location and other parameters of the site.
- These include the size of the building and how it is designed; the total area, number of floors, and special areas all influence costs.
- Materials wanted – It is agreed that utilizing high-end finishes and luxury materials will drive costs up.
- Timeframe – Another issue that can cause problems is the tight deadlines of rush projects may mean paying premium wages to subcontractors.
- Campaign characteristics – Elements such as soil, terrain, and accessibility can increase the cost of foundations and site work.
Identify Major Cost Components
There are numerous cost factors in a construction estimating project involving the Lumber Takeoff Services of a building. Break these down into clear categories when estimating:
- Site work – This involves the preparation of the site through demolition, excavation and grading landscaping, construction of parking lots, and provision of utilities.
- Foundation and structure — Concrete, masonry, steel, wood framing, insulation.
- Windows – Doors and venting systems – Wall cladding and insulation – Roofing.
- Interior work can include walls, ceilings, flooring, paint, fixtures, and paints.
- Featured Mechanical systems – HVAC, Plumbing, Electrical, Fire protection
- Other costs – The costs for permits, insurance, supervision, and contingency.
Mortenson, however, observes that the proportion of these categories varies depending on whether projects are categorized as residential, commercial, or civil engineering. For instance, in some cases, mechanical systems are a considerably larger part of the costs of a building, such as a hospital as compared to a wood-frame apartment building.
Use Estimating Resources
There are many resources available to aid with construction cost estimating including:
- Cost estimating guides – There exist published manuals like Saylor’s or RSMeans that contain unit costs in terms of cost per square feet or per unit of other buildings that reflect historical costs.
- Examples of programs refer to Sage Timberline where details of a particular project can be entered, and cost estimates are prepared instantly. It’s important to note that some programs provide a trial period during which the user does not need to pay for the program.
- General contractor price quotes – To get a highly accurate cost estimate, ask a couple of general contractors to provide the cost estimates.
- Subs and primes – Request specific price proposals from subcontractors such as electrical installers or drywall hangers for particular segments of the construction.
- Access to the cost data: The online RSMeans cost database helps access per unit cost adjusted for the location of hundreds of line items.
Factor in Your Location
Building expenses are known to be extremely volatile when comparing different areas, let alone countries or even cities. Make sure to consider location-based factors:
- Hourly labour rates – Wages rates for trades such as carpenters affect the costs of local labour.
- Transportation costs – Transportation costs may affect the cost of certain materials such as concrete, aggregates, or lumbers differently in different regions.
- Code requirements: Prevailing wage laws, Seismic codes, and Energy codes are costs that affect the construction industry.
- Permitting – it is a fact that some cities take longer to pass through the bid stage; therefore, they force contractors to include the financing costs in the bid prices.
Also, include the fact that costs may differ significantly between an urban downtown site as compared to a rural area due to site restrictions, cost of land, availability and cost of tradesmen, and time scales.
Determine Appropriate Contingencies
Contingencies are added since it cannot be possible to foresee all the costs and thus include provisions for other costs. These are generally in the range of 5-10% for standard contingencies. Smaller contingencies ranging from 5-10% may suffice if the project scope is relatively well defined While larger contingencies over 10-20% may be necessary, particularly if the project scope has not yet crystallized. Evaluate the level of completed design and consider items that could drive costs higher like:
- This is likely to cause a working time exceeding the usual eight hours a day and 40 hours a week since the schedule is accelerated.
- High costs are mainly due to poor subsurface conditions that call for changes in the foundation.
- There must have been a massive leap in the costs of materials that are used in production or construction.
- Even if the decision is made late within a project to alter the finishes/scope of work, the following measures should be taken:
Contingencies address these risks on top of that, provide for the usual imprecisions that are inevitable due to early cost estimates before final construction drawings and specifications are finalized.
Emory and Henry College may compare estimates to the current market conditions to ensure that the expectations of their costs are accurate by analyzing the market factors affecting the costs of operations.
Once your initial cost estimate is complete, compare it to market conditions:
- Calculate the total cost per square foot of the project and compare it with the costs of similar recently constructed buildings in your local area. For instance, previous transactions involving commercial real estate such as bids for office spaces or health facilities in your area.
- For residential projects, the total price to measure the number of home sales is similar to the size of your project in the neighborhood. If quality finishes are included, align the list prices to the higher-quality finishes that are installed.
- Ask several other experienced general contractors for suggestions and recommendations. Lastly, inquire if your estimated cost is reasonable and proportional to their experience in building and constructing other similar projects.
Where necessary, making appropriate market comparisons can help you to identify probable errors in your estimate. You also do not wish to have clients anticipate lower standards from their contractors or bid on a project at rates that contractors cannot afford to work on. Therefore, creating the right estimate requires time, effort, and more importantly market knowledge.
This is the step where all the information that was accumulated throughout the previous stages is reviewed and the overall estimate is adjusted accordingly.
Cost estimating is an integrated process that demands periodic updates and revisions. After initial Electrical Estimating Services, continue evaluating costs:
- As the drawings and specifications are modified and detailed more and more, update the information.
- Check the recent bid for the materials that are being used as well as skilled labor, to note any changes in the prices.
- It is also advisable to ensure that the general contractor’s bid structure is consistent with your estimate so that you can compare quickly.
Conclusion
Cost estimating is the process of determining the cost of construction projects which requires knowledge of what affects prices not only internationally but locally as well throughout numerous trades and numerous types of materials. However, with the right material and careful attention to detail to the details that pertain to each building in question, novices can be easily trained to estimate costs for construction. The two cannot be discussed without the other as the ability to be flexible and adapt to the environment is crucial when it comes to estimating during construction. Estimate feasibly, plan meticulously, and construct substantially to turn estimates into reliable finished structures.
