Construction estimates are the foundation of every building project. Strong estimates help ensure projects stay on schedule and remain profitable.
Estimating is a key component of the bidding process, during which contractors and builders submit proposals or bids to project owners offering services or supplies for a construction project.
Detailed Bill of Quantities (BoQ)
A detailed bill of quantities (BoQ) is an essential document that can help a contractor to prepare a more accurate estimate of the project costs. It includes all the materials, labour, and equipment that are required to complete the construction work. It is also important to include a contingency sum for unexpected costs that may arise during the construction process.
A BoQ is prepared by a quantity surveyor or cost consultant after the design team has completed their drawings and specifications. It is a vital document that helps to determine the overall project costs, and provides a basis for negotiating and comparing tenders.
Getting the Bill of Quantities correct can make a big difference to the quality of a contractor’s bid and ensure that they win the contract. However, mistakes can be made in this document, which is why it is important to prepare it using a standard method of measurement.
One of the best ways to prepare a BoQ is to use construction estimating software. These programs allow contractors to easily import their BoQ, add trade codes and price bill items. They also provide a range of layout options that will enable contractors to organise their documents in a more organised way.
The main aim of a BoQ is to ensure that all contractors pricing their bids are offering the same quantities, which can prevent disputes and give clients a more fair system for tendering. It is also useful for ensuring that the project stays within budget, as the BoQ can be used to monitor spending and keep track of how much has been spent on each stage of the project.
A detailed BoQ will also include all the terms and conditions that are relevant to the project, and will itemise all the work involved. This information will be used to help a contractor create an accurate estimate of the project costs, and it will also be included in the contract documentation for future reference.
Sub-Contractors
Increasingly, building projects are taking on greater complexity and there is no longer any one contractor that can carry out all of the elements of a project. This has led to an increase in the number of contractors who sub-contract their work, and more and more complex supply chains are emerging.
Choosing a sub-contractor is an important part of managing a construction project. It’s essential to find good sub-contractors whose reputation and work on previous projects is reliable. The best way to do this is to ask around for referrals and recommendations.
When choosing subcontractors, it’s important to know what quality standards you are looking for and to set them out in your contract. This will help you to focus on the right contractors for your projects and reduce your risk.
It’s also a good idea to walk through the subcontractor’s processes and procedures, ensuring they have the necessary health and safety, environmental and industrial relations policies in place. This helps ensure that your work is carried out by a company that respects its workers and treats them with the utmost care and diligence.
Once you’ve vetted a subcontractor, make sure that you have a solid contractor-subcontractor agreement in place that details all aspects of the job. This includes project specifications, expectations, timelines and all renumeration and payment methods.
As a result of this agreement, both parties are accountable for fulfilling their end of the bargain. Typically, this means that the contractor is responsible for completing the work to a high standard and the subcontractor is responsible for delivering it on time.
The best sub-contractors are reputable companies that have been in business for a long time and are willing to go the extra mile for their clients. It’s also important to check if they have their own insurance. This protects you and your sub-contractors from any accidents on site and is a simple but effective way to show that the subcontractor respects its employees.
Developing a solid subcontractor management system can be a challenging balancing act, but it’s an essential component of any successful construction project. It’s important to treat subcontractors like they want to be treated and provide them with the tools, information and timely communications they need to work at their best.
Materials
Building material estimates are a vital part of a construction estimate. They help to set the overall project budget by giving accurate line-by-line costs for the materials that will be used to construct the building.
A construction material estimate can be done by hand or with the help of construction estimating software. Either way, it is important to have a thorough understanding of the project. This will help to ensure that the project is completed on time and within the agreed budget.
When preparing the estimate, estimators should take time to familiarize themselves with the project’s Scope of Work and the blueprints. This will ensure that the quantity takeoff reflects all of the materials needed to build the structure.
It is also a good idea to visit the construction site before preparing the material estimate, as this will help to identify the types of equipment that will be needed and how long the project will take. While this won’t have an impact on the actual materials that get included in the quantity takeoff, it will give the estimator a better idea of how much time will be spent on the project and whether it will be cost-effective.
In addition, it is a good idea to take into account the local market for construction materials. This can be beneficial in areas where certain materials are cheaper than others, such as wood in regions near lumber mills.
Another important factor to consider is price level changes over time. These changes can be a useful indicator of how much a project will cost in the future, as the market is constantly changing and prices are always fluctuating.
Estimators often have backgrounds in fields that are related to the construction industry, such as engineering and architecture. This is to ensure that they understand how the different components of a building are connected and what the best way to go about constructing it is.
Once an estimate is ready, it can be submitted to the client for approval and signed off. This process should be done well before construction starts to avoid any last-minute changes. It is also a good idea to include a buffer for any potential risks that may occur during the construction process, such as weather conditions or equipment failure.
Measure Manage
It’s no secret that a well managed team of construction estimators is the backbone to any successful building project. Keeping those estimators happy and on budget requires top of the line project management tools, software, training and communication between all involved parties. This is where the plethora of estimating software solutions come in, all the while keeping a close eye on the quality control and compliance aspects of the project to ensure that all goes to plan and no one gets shortchanged at the end of the stick. A well designed and administered schedule, with regular checkpoints to monitor progress along the way is a must. Using the right software, you should have a streamlined and efficient project management system in place before you know it, your new construction venture will be the envy of your competitors in no time.