Mechanical estimators often use equipment schedules to help them with their material takeoffs. This helps them avoid making mistakes and speeds up the process.
In addition, they also make notes of any non-allowance services and ambiguous or conflicting parts on the drawings. This will help reviewers understand why changes were made.
Detailed Analysis of Project Plans and Specifications
The quality of a cost estimate is directly related to the depth and breadth of information that is used to support it. A thorough and detailed analysis of the project, including a review of both costs and schedule risks, should be part of any estimate process. A thorough and detailed bottom-up independent estimate should be conducted for all work that is expected to impact the project’s overall costs. This should include quantity takeoffs and development, vendor quotations, use of historical information and productivity analysis.
Any changes to a cost estimate should be documented and tracked. The underlying cause of the change should be identified, and any necessary adjustments made to the estimate. These changes may be caused by modifications in scope, unexpected increases in labor rates, variances in escalation rates or changes to the project’s schedule. Changes to estimates that are supporting project baselines should be subject to a formal baseline change procedure (refer to DOE O 41.3.3B, Appendix A, Section 6).
Any estimate package should clearly communicate the basis of each component of the estimate. Typically this is communicated at the high level in an estimate summary document and at a more specific level within the estimate document. This information should include a breakdown of the percentages of the estimate that are based on each source of information, such as a cost book, in-house data base or a commercial database.
Using the Right Tools and Methodologies
Using the right tools and methodologies can help make mechanical estimating a more efficient process. Specialized takeoff software, for example, can help reduce the time it takes to calculate project costs by automating and streamlining the estimating process. It also helps to ensure accuracy by ensuring that all calculations are done correctly.
Cost estimates should also be based on the most recent available information. This is especially important when considering a new technology or material. In addition, it’s a good idea to use a consistent methodology and include all the qualifications and assumptions used in developing the estimate. This way, it will be easier for anyone to understand the basis of the estimate.
When preparing cost estimates, it’s often necessary to incorporate escalation rates. These rates can be either forecasted, based on current year prices, or historical, based on the average price change over time. It’s important to understand the impact of these escalation rates on your project’s overall budget.
This easy-to-use manual contains accepted standards and procedures for taking off, pricing and estimating HVAC, sheet metal, piping and plumbing systems. It’s an invaluable resource for any contractor looking to streamline their estimating process and improve productivity. It includes a wealth of labor and cost data, formulas, charts and completed examples. It also includes the latest cost books and provides the most up-to-date equipment, materials and pricing data.
Keeping Up With Industry Changes
There is no doubt that the construction industry can be a very fast-paced and changeable one. As such, it is important for contractors to keep up with the latest developments and trends within their specific industries in order to remain competitive and stay on top of their game. That means reading up on their industry – a lot. It also means keeping an eye on the changing political, economic and social climates that may impact businesses on a city-wide, state-wide or world-wide scale. It can be challenging to do all of this, but it is necessary in order to survive and thrive in today’s highly-competitive business environment.
Managing the Time Required
As a construction mechanical estimator, you’re likely in an intensely competitive field. You may have to produce as many as eight estimates for every one job your firm wins, with precious little time to iterate and improve your bidding process.
Performing a post-mortem analysis of your last few lost bids can help you identify gaps in your research, pricing, and the way you present your estimates and bids. It can take a few minutes to complete this analysis, but it should provide a healthy return on your investment.
Means Mechanical Estimating Methods is an all-in-one reference that covers the accepted standards and procedures for takingoff and pricing HVAC systems, piping, plumbing, and fire protection in new building construction projects. It also includes a glossary of terms and symbols, useful formulas, checklists, and conversion tables. The book is easy to use and provides the necessary tools you need for accurate estimating. You can download it online for free. It’s an excellent resource for any mechanical estimating professional. It’s updated every two years to keep pace with industry changes.