Construction estimating is one of the most important jobs in the industry. It can either make or break your company’s profitability.
As an estimator, you have to have a good understanding of construction costs and be able to estimate them accurately. This is a challenging job that requires a lot of math and strategy skills.
The Job
Construction estimating is one of the most important jobs in the industry, and it’s also one that requires a lot of hard work. In order to be successful, estimators need to have strong math and strategy skills, as well as excellent communication and visualization abilities.
Estimators typically work with construction designers to review project plans and specs before preparing a cost estimate. They use these plans to compile a list of materials called a quantity takeoff, which gives line-by-line costs for the types and quantities of building material needed to complete a project.
The takeoff may be broken down into individual materials or work packages, which can later be assigned to specialty contractors. This allows estimators to ensure that all work is accounted for and reflects all direct costs, such as labor.
A number of factors can influence the cost of construction, including materials pricing and the geographic location of a site. Some materials, such as wood, can be more affordable in areas with lumber mills.
In addition, the amount of time a crew of tradespeople and laborers will be required to complete a project is another factor that must be included in construction estimates. Estimators must also account for the costs of insurance and bonding, which help mitigate risk for owners and contractors alike.
As a result, the job of preparing construction estimates is a vital part of any construction business’s operations. The process is designed to give contractors a competitive edge in the bid process and ensure that they have the budget to successfully complete projects.
After determining all costs, such as material, labor, equipment, and indirect field costs, estimators adjust the price to reflect both a profit margin and a contingency, which is used to cover overruns or other unexpected costs. These figures vary significantly across the industry, but most businesses add anywhere from 5-10% of the contract price to account for the contingency.
Because of the extreme financial risks involved in a construction project, estimates are essential to both builders and clients. Having a reliable cost estimate can make all the difference between a winning bid and a loss. This can ultimately save both parties money and time by ensuring that projects go according to plan, despite their size, complexity, and timelines.
The Environment
When we think of the word “environment,” we typically envision a natural environment. But an environment is also composed of the physical and chemical elements that surround us.
The physical environment includes abiotic factors like temperature, light, water, soil, minerals and more. These abiotic conditions are essential for the growth and survival of all living organisms.
These environments include aquatic ecosystems (oceans and seas), freshwater systems, terrestrial eco-systems (forests and grasslands) and atmospheric eco-systems (air). The biological aspects of the environment are referred to as the biosphere, which is made up of all the world’s natural ecosystems.
Environmental protection is a term used to describe activities that help protect the environment and preserve natural resources, habitats, and biodiversity. It also involves addressing issues like climate change, pollution, and the loss of wildlife.
Some examples of the environment are the sun, water, soil and air, which are sources of food, energy, and other materials that support life. They are also the source of many things that we use, including fossil fuels, electricity, and natural gas.
We also use the environment to absorb waste products from production and consumption. This is done through plants that have a special capacity to absorb chemicals and bacteria without harming the surrounding organisms.
Another important part of the environment is the atmosphere, which contains various gases that provide oxygen and regulate temperature. The atmosphere also protects life by preventing UV radiation and other forms of harmful ultraviolet rays from reaching Earth’s surface.
As an estimator, it is critical that you stay attuned to the changing cost of materials and supplies in order to get accurate estimates for your clients. The prices of most materials and supplies fluctuate significantly over time, even between the same cities and countries.
This makes it hard to know what the costs will be on any given project. In addition, labor rates are often subject to fluctuations based on the local economy and demand for specific skills.
When preparing an estimate, you must consider the cost of materials and other equipment as well as the costs of labor and subcontracts. These costs are often influenced by current and projected economic trends, as well as market trends, and can change rapidly from the time you start your estimate until construction begins.
The People
Construction estimating is a complex and oftentimes daunting task. It requires strong analytical and mathematical skills, as well as excellent communication and eye to detail abilities.
The hardest part of the job is predicting future costs. Prices for materials, equipment and labor are constantly moving, so estimators must be vigilant about what’s happening in the market to ensure they’re preparing accurate estimates.
Aside from spotting trends in the marketplace, it’s also important to stay aware of how construction costs vary between different building projects. This will help you to understand what will make the most sense for the specific job you’re estimating.
One of the best ways to do this is to track job costs on each and every project. This will help you to avoid making bad estimates that can sabotage your company’s reputation and bottom line.
Another way to ensure that you’re putting forth the best estimate possible is to utilize a robust construction management system. These systems come with built-in features such as a custom quote designer that automatically populates customer data, assembly pre-builds and easy labor calculations.
There are many things to consider when it comes to constructing a quality estimate, but the most important is to create one that accurately reflects your company’s ability to deliver the work on time and within budget. This will ensure that your bids are competitive and allow you to win jobs.
It is also important to include all of the relevant costs and benefits in your construction estimate. This is the only way that your clients will know exactly how much they will be paying for your services.
There are many things to consider when it comes constructing a quality estimate, but the best way to ensure that you’re putting together the best possible bid is to utilize a robust construction management system. This will ensure that your bids are competing with the best in the business and allow you to win jobs.
The Tools
Construction estimating is a difficult task, and it requires specific skills. Estimators need to be able to calculate the exact cost of materials and supplies for a project, as well as the quantity needed to complete the job. They also need to be able to determine how much labor will be needed for the job.
Estimating software helps estimators create detailed cost estimates that include line-by-line breakdowns of materials, labor, and supplies for a construction project. It typically includes preconfigured formulas and calculations, localized material cost databases, and cost summary templates.
Using construction estimating software is not only effective, it’s a great way to get more projects done. It eliminates the need for manual calculation, which can be inefficient and can lead to errors that can stall or delay construction projects.
This software also automates the bidding process for general contractors and subcontractors by creating and sending RFQs to vendors. It can also analyze those bids and automate the creation of purchase orders.
Many of these estimating tools can be customized to the trade and industry that you work in. They may be geared toward plumbing, HVAC, electrical, or other types of contractors.
They often provide multi-item update functionality, which allows you to quickly apply an update to several different places in your estimate at once. Most of these products also include a list of predefined calculations for items like area, volume, and curved distances.
With these tools, you can ensure that you’re completing projects on time and within budget. Ultimately, this will help your clients develop trust in your company and keep you top-of-mind when they need construction services.
By improving efficiency and accuracy, construction estimating software can also improve your business image. When clients see how organized and efficient you are, they’ll have confidence in your company and be willing to recommend you to their friends and family members.
The software can even be used to rethink the way your construction firm operates, so that you can make more profitable business decisions and complete better projects. With accurate data and more time to think strategically, you’ll be able to finish projects that exceed your client’s expectations and build your reputation as a top construction firm.