Traditional Way of Estimating is The Problem
There is nothing wrong if we can say that contractors don’t have time for Construction Cost Estimate. Because construction takeoff and construction cost estimating is a very hectic and time-taking task. Remember all of the construction estimations are in the number of games and there are so many other things you can do to increase your success rate but, in the end, the estimated construction cost you do the more chances you have to win the work.
Most the Contractors do Cost Estimates in The Two Ways
- Most of them send their plans to their master bids and hope they will send back an accurate estimated construction cost on time.
The other one sits in their living room and does construction by hand. Sometimes they prepare a material list and send the list to the suppliers and pieceworkers to get quotes via Construction Cost Estimate.
- The main problem in this is that it is too slow and you get dependent on your subcontractors, suppliers, pieceworkers, and vendors for the pricing of construction.
- Subcontractors are already very busy in this field they are working day and night for providing the best construction services. How do you think they are always 100% accurate?
So, there are the two strategies that are going to get you good results
Strategies for Estimating Construction price
- Unit Pricing
If you want accurate Construction Cost Estimate then you should go for unit pricing for your construction estimation. I am sure you and the constructor already using the strategy of unit pricing for the estimation. For Example, if you are a painter then you know you charge $100 for painting that’s the unit price.
Most of the contractors know their unit pricing but they don’t know their actual direct cost.
The initial step of the construction cost estimation is the digital takeoff. Every construction estimator uses different software for this purpose but the following are the most common use ones Plan swift, Bluebeam, On Center, and many more.
Never try to do estimation by your hand. because it can cause so many errors always invest in digital software. It’s going to be so much more accurate and give the fastest and most accurate results.
Next, you can use the unit pricing to first figure out the direct labor and the material cost and then later can add Supervision, Profit, Overhead, and Sub markups if you’re working or dealing with the sub-contracts and cost estimators.
Doing Construction Cost Estimate by this method shows you the actual price versus the price you have always gotten. By using this strategy, you can see all of your construction costs on your dashboard. By seeing all of your costs you can also make any changes and adjustments in the negotiation phase.
How to Calculate Your Unit Pricing?
Step 1: Using a sample item, determine your overall labor and material costs.
Step 2: Calculate the costs by multiplying the entire sample’s square footage. Here is the equation:
Square Footage / Labor Cost = Labor Cost per SF
Step 3: Additions to your database
Step4: Repeat the material in
If you are into a business for a while, you probably already have a good notion of how much labor is involved without using a cost database. The majority of contractors charge labor by “3 guys x 5 days.” Then put the project together in that manner. That is something you learn from working in the field.
We only need to multiply our labor cost by two and add 10% as a safety net because we know that labor accounts for roughly 50% of the costs.
Working as a project superintendent for a while was among the best things you have ever done in my professional life. Maybe you are one in charge of organizing the fieldwork, therefore you frequently make time for Construction Cost Estimate.
Knowing how long things take is one of the most strategically significant skills you can have as a construction cost estimator.
Even when performing estimates, we frequently need to alter pricing to account for challenging working circumstances. Which are field conditions, bespoke goods, complexity, etc. Furthermore, it’s not possible to obtain numbers from a database.
We may begin by using the database to set our prices. Then modify them in response to factors such as geography, employment demands, assembly challenges, etc.
Due to their hectic schedules managing their businesses, most contractors miss out on their projects. They Construction Cost Estimate using the Traditional Way, which is frequently slower and less precise, and this is part of the reason.