Every construction project needs careful planning before work starts, and the estimate is at the heart of that plan. Here are a few tips companies can follow to produce a proper construction estimate.
1. Master the takeoff process
Construction estimating starts with the takeoff: identifying every construction element that can be measured and priced. Contractors capture every necessary detail so there are no significant setbacks during construction — a single miscalculation in the budget can have heavy consequences for the project.
2. Keep cost estimates accurate and realistic
Inflated, over-the-top estimates don't help anyone. Keep the whole cost estimate realistic, because variables will inevitably affect the project once construction begins.
3. Use a master checklist
Keeping track of everything is critical. A master checklist is one of the best ways to manage the cost estimating process: it reminds you of every critical step and detail, including permits and other requirements that are easy to forget, while keeping the whole project organized.
4. Never miss the minor project areas
Don't overlook the smaller areas of the project. With so many requirements, permits, and variables in play at once, it can happen to anyone — but leaving out minor details can cause real damage, and costs can spike as a result.
5. Account for special labor costs
Some projects require specialized labor. Include it alongside regular wages, account for federal and state payroll costs, and keep this in mind when you set hourly rates.
6. Know how prices fluctuate
Construction supplies, materials, and equipment change in price from time to time. Cost estimators need to track market movements so they can adjust the budget accordingly.
7. Outline the construction equipment
No project happens without the right equipment. Make sure every piece of equipment in the estimate is correct and specified precisely so no time is wasted. Beyond the large equipment, don't forget small tools.
8. Keep clear communication with suppliers
You'll regularly need to talk with suppliers about additional supplies and materials. Building a good rapport keeps the supply process smooth, and suppliers you trust can share insights and recommend quality materials that fit — or even lower — your budget.