Construction estimators use a comprehensive cost estimating process to determine the sales price of projects that covers materials, labor, equipment, indirect field costs, overhead, profit and contingency. Each construction business sets its own minimum attractive profit margins and adds a predetermined amount of contingency to every estimate.
Estimators also analyze site conditions that may influence the project’s cost. For example, a challenging site might require more excavation work, increasing costs.
Cost of Software
Construction estimating software helps builders and contractors estimate project costs for the materials, labor and equipment needed to complete a construction project. This enables them to submit bids that are more accurate than those made manually. Using this type of software can also improve efficiency and reduce the likelihood of errors.
The cost of construction estimating software depends on the vendor and the licensing model. Many vendors offer subscription-based pricing models, while others sell perpetual licenses that can be used indefinitely. The number of licenses required may also impact the total cost, as multiple users will need access to the software.
Some estimating tools also provide additional features, such as payment tracking and reporting. These features can increase the overall cost of the tool, but they will also allow users to make better decisions. Other software features include a project invoicing module, which can help contractors process change orders quickly and accurately.
Another important factor in determining the cost of construction estimating software is how it is hosted. Some software vendors offer a cloud-based service, while others install the product on the company’s own servers. The latter option is typically more expensive, as the software will need to be installed and configured on each computer that will be using it. In addition, the software will need to be backed up regularly to prevent loss or corruption of data.
Time
Estimators spend a lot of time on each estimate, and the more details they add, the longer it takes to complete the task. They are also responsible for the indirect costs of preparing estimates, such as travel expenses and equipment maintenance. These costs are often overlooked, but can make a significant difference in the overall cost of a project.
One of the most important steps in creating a construction cost estimate is a site visit. During the visit, estimators note and photograph important features of the project. They may take into account things such as the ease of access to the project location, difficult subsurface soil conditions, or adjacent buildings that could increase the complexity and cost of the job.
The next step is to review the project plans and specifications to identify any special requirements. This may include unusual floor plans or structures that require specialized materials. Once the plans are reviewed, estimators can start determining the project’s scope and finish requirements. This allows them to create a bill of quantities, an itemized list of work and material requirements that are used to prepare the estimate.
Once the bill of quantities is complete, estimators will calculate the direct field costs, equipment costs, indirect overhead costs, and contingency. This will help them determine a sales price that covers all costs and returns a profit for the contractor. This is an essential piece of the estimating process, and can help contractors win projects they otherwise might not have won.
Experience
Construction estimators need to have the necessary experience and expertise to prepare estimates. This includes understanding the strategies and technicalities of different construction methods, such as steel framing and wood framing. In addition, they need to be familiar with the costs associated with different types of equipment. A construction estimator must also be familiar with indirect and overhead expenses such as permit fees and insurance. He must be able to compile detailed cost proposals presented in a customer quote.
Construction estimating is a complex and time-consuming process. It is vital to identify and account for all project costs before work begins, including labor, equipment hire, materials, and transport costs. A good construction estimate can prevent costly surprises, which may result in project delays and budget overruns.
In order to create a comprehensive and accurate construction estimate, an estimator must carefully review the scope documents, building plans, and engineering specifications. He must then prepare a list of all the materials required to construct the building. In addition, he must assess the electrical, plumbing, and mechanical (MEP) requirements of the project.
An effective construction estimating consultant must be able to communicate effectively with a wide range of stakeholders, including engineers, architects, contractors, and sales teams. In addition, he must be able to adapt to changes during the project lifecycle and provide accurate project estimates in a timely manner. He must also be able to negotiate prices with suppliers and make adjustments in his estimate as needed.
Travel
Travel expenses are an important consideration for a construction estimating consultant. They may be reimbursed by their client for the cost of airfare, hotel rooms, mileage, parking and other relevant costs. If they are required to travel on work days, their time is considered compensable as long as it is within federal and state regulations. This may include traveling between the airport and their home or office. They may also be compensated for travel between their hotel and a job site.