Building estimates are the cornerstone of construction work plans. They help contractors evaluate bids, determine whether a project is viable and more.
Estimators begin with a review of drawings and technical specifications. They then subdivide the project into work packages that can be later assigned to specialty contractors. They may also research costs to increase accuracy and prepare a definitive estimate.
Cost Analysis
Cost analysis is an important part of preparing a project estimate. It includes the identification of all products and materials required for the project and calculating unit costs. It also includes labor costs-how many hours will be needed for the project and how much will be unskilled versus skilled labor. This information is then adjusted to include profit margin and contingency. Generally, estimators look to past project data to develop an accurate cost analysis. This includes both a review of the project’s scope and a comparison of similar projects to identify cost trends.
There are several different types of estimates that can be prepared based on the phase of the project. For example, an order of magnitude estimate is an early stage estimate that is intended to give stakeholders a rough idea of the project’s costs with an expected accuracy of -25% to +75%. This type of estimate is often used to inform design decisions and to evaluate whether a project can be completed within the client’s budget.
Square foot and cubic foot estimates are a more advanced form of estimating that can be used for construction, preconstruction or planning purposes. These types of estimates are usually based on historical database information providing unit costs for various items such as floor area, production equipment or major structural systems. The estimates can be further refined by adjusting for input price indices and local labor market rates as well as interpolation between available cost tables.
Design Review
Identifying potential construction problems early in the design phase and addressing them effectively saves time, money, and resources on your project. An experienced estimator will be able to help you create solutions and mitigate risks that can result in costly construction changes or claims during the actual building process.
The review process may involve a local government or an appointed panel of citizens that include architects, urban designers, landscape architects, and other professionals. Some communities enact development standards or ordinances that require a design review for new commercial and multifamily buildings, renovation of existing buildings, additions, facades, and other construction projects.
A thorough design review will ensure that your plans are constructed according to the original design, comply with all relevant codes and regulations, and reflect the unique character of your community. It will also reduce the risk of costly construction errors and issues that could impact your budget and timeline. Many of these issues can be identified and resolved during the pre-construction phase before the schematic design is converted to construction documents (CDs). These CDs then serve as the basis for your contractor to complete a successful build.
Material Takeoffs
Material takeoffs are a key part of the building services estimating process. They involve a review of project plans to determine what physical materials are needed to construct the project. This work can be done manually or digitally. The result is a comprehensive list of construction materials and their quantity. Often, a material takeoff is also accompanied by a breakdown of cost for each individual type of construction material. This is necessary to accurately calculate the total project cost.
In addition to ensuring that all required construction materials are identified and quantified, material takeoffs also help reduce the time it takes to prepare an estimate. They allow project teams to focus on other aspects of the bid and proposal process, reducing delays and ensuring that a project is feasible within the scope of a client’s budget.
In the United States, there are many companies that specialize in preparing comprehensive material takeoffs for construction projects. These firms employ specialized teams of takeoff professionals who have the experience and skills to deliver high-quality work quickly and efficiently. Their work is accurate and precise, allowing them to save time and resources in the estimation process. Additionally, their services are affordable and offer value engineering options to help clients achieve their goals within the estimated project budget. In addition, these companies provide a guarantee that their work is free from any errors and omissions.
Cost Estimates
Building estimates are an essential part of the construction process and help you better manage your project budget. An accurate estimate helps you finalize your scope, develop a budget, and identify any issues that may arise during construction. It also makes it easier to determine the feasibility of your project.
Using the information gathered during the design phase, estimators prepare preliminary and detailed cost estimates for direct project costs such as labor, materials, and equipment. They use a variety of cost estimating methods and software tools to ensure accuracy and efficiency. They also conduct sensitivity analyses to assess the impact of potential changes in project variables.
Once the project design is complete, estimators prepare a detailed pre-bid estimate. This estimate includes a bid price for the direct construction costs, plus a markup to cover general overhead and profit. It is typically organized by CSI’s Work Breakdown Structure (WBS) and presented to contractors for competitive bidding.
In addition to the cost of construction, a detailed estimate should include indirect project costs such as G&A expenses and insurance/legal fees. It should also contain a small contingency for unexpected project costs that are outside the control of the contractor. Lastly, estimators should evaluate the impact of current market conditions on their estimates through analysis of input prices for labor and material as well as output price indices for completed facilities.