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Why Is Construction Cost Estimation Important?

Whether a construction project is big or small, there is only one objective: to complete the project and achieve all the goals. But setting the goals is a different task, examining the real-world factors that can make or break your goals are another. To understand these factors and mitigate a proper way to complete the project, you need accurate construction cost estimation.

Let’s take a look at the necessity of construction cost estimation and using a construction estimator for the job.

The Purpose of Construction Cost Estimation

 

Irrespective of the project type: new project, add-on, or renovation of an existing site, construction cost estimation provides your clients with a precise picture of the complete expenditure required to complete the project.

All construction projects contain diverging costs that sometimes stretch beyond the grasp of construction managers, employees, and materials required for completion. But the United States Census Bureau affirms that construction cost estimating software is competent in accurately estimating every cost. It does so by collecting data based on various factors that include labor, materials, location, machinery, building codes, and even the type of soil. These factors help the software create data points and accurately project the end cost. If the construction site is located somewhere that experiences erratic weather, the clients will experience unforeseen cost overruns and project delays.

On top of these, an estimator has to consider other factors, like provisions containing fuel, water, electricity, drainage, and specific material needed to complete the project. Even the availability of materials plays a vital role in project completion since not all materials are available at the same time.

Construction Cost Estimation Techniques

 

Different estimation techniques that cost estimators use depending on the speed and accuracy rate. Some of them are:

  • Joint Cost Allocation: To allocate different costs that are tough to assign to single project elements, estimators use distinct mathematical formulas.

  • Empirical Cost Deductions: The following technique uses regression inspection to connect the construction cost and an estimator’s model. The method accuracy heavily depends on the quality of the predictive model used. Hence, estimators must be familiar with each aspect of total construction costs.

  • Production Function: This particular technique connects the output of the project (build completed so far) with the input (labor and materials). So, to define a certain output (particular square feet built), you need to define the most favorable input values.

  • Stick Estimation: The method is highly accurate but equally time-consuming. It is an estimation practice used to determine the total cost by listing the cost of each job. With so many factors to add and consider, human-errors are common since so much time engagement causes loss of focus and carelessness.

  • Unit Cost Estimating: In layman terms. Unit cost estimation connects unit costs with every assembly included in the construction process. It is a comparatively quick estimation technique with high accuracy, especially if the estimator has previous experience of using assemblies.

Common Difficulties Encountered During Construction Cost Estimation

 

To get accurate cost estimations and avoid difficulties, all you need to do is stick to the standard procedures consistently, and most experienced estimators will concur with it. A common problem that experts often suggest is failing to read the documents carefully. Such failure often leads to dramatic errors in the project scope and cost estimation. Another problem includes mathematical inaccuracies that either include incorrect data entry or failing to integrate costs during the estimation process.

Other bigger faults consist of failing to visit the construction site and inability to comprehend the prevailing conditions. There are even instances of some estimators use previous cost data without adjusting them to current conditions. Or, they will make random adjustments without using old data. In both cases, slight miscalculations result in wrong estimations even causing project shut-down.

Final Words

 

Project designers and construction managers must realize that there while construction cost is a major component in the overall capital, other cost elements are vital too. For an owner/investor, apart from the construction cost, they must consider the operation and maintenance cost that will follow after project completion. Ultimately, construction cost estimation software can relieve the burden of common errors and time-consumption easily.

By |2020-11-13T11:14:38+00:00November 10th, 2020|Construction estimating software|0 Comments

How to Choose the Best Construction Estimating Software

Gone are the days when manual calculations were done to determine project cost, except for small jobs. Now, construction businesses of varying sizes are using technology to speed up all aspects of their construction processes, including estimating.

A well-designed construction estimating software can help companies streamline their operations and deliver critical details for project management and scheduling. The benefits of the right estimating software solution are comprehensive, but here are some critical ones:

  • Fast and efficient.
  • More accurate calculations.
  • Save your project details for the future.
  • Help you stay within your budget.
  • A reliable and time-saving solution.
  • Take your overall professionalism to the next level.

All these features together make your construction pricing software highly effective. The right estimating system can immediately impact efficiency and accuracy while handling project expenses as well as delivering important business information related to project management and scheduling. To find an estimating software solution that can provide you all these values, you need to consider some essential points while making the selection. 

Tips to Select the Right Construction Estimating Software 

Although cost estimation may vary from one trade to another, the process shares similar fundamental principles of comprehensive breakdowns and accuracy. Bid and takeoff are two areas in which software has been proven a time-saver that also improves efficiency. Picking the wrong construction estimating software can be quite expensive and disruptive. That’s why it is critical to select the right software system in the first go. You can consider the following tips to choose the best estimating software:

  1. Determine the User-Friendliness

Ease of use should be at the top of the list while looking for the best construction estimating software for your business. If you choose software with complex functions, you will not be able to sell more jobs as you won’t know how to use it the right way. The integration time for new software is an excellent point to evaluate its usability. The longer it will take to incorporate the software into your business, the more will be the adoption risk. If you need external technical support to keep the system up and running, then it’s probably not easy to use the software.

  1. Consider Asking Questions

When searching for a potential estimating software solution, dig a little deeper, and find answers to the following questions:

  • Is the software designed and developed by construction industry professionals?
  • Does the solution address the specific requirements of construction estimating?
  • Is this estimating software configured on the logical process?
  • How does the software solution meet business and estimator expectations in legal and commercial compliance?
  • Is this estimating software platform intuitive?

Ask all the above questions and ensure the software you’re choosing is designed for the construction industry exclusively and offer accurate track records for support in emergencies.

Construct Estimating Software

  1. Check the Efficiency of the System

Another critical element you need to look at when selecting the right estimating software is – its efficiency. Some of the most crucial components of efficiency involve document storage, mobile sales activation, collaboration features, and so on. Software with all these aspects can be called efficient. You can also operate it efficiently from anywhere on any device – computer, tablet, or smartphone.

  1. Take Advice From Professionals

You might have heard the phrase – “The proof of the pudding is in the eating.” Before you take the plunge, it is recommended to contact other construction experts who are already using your chosen construction pricing software. You may ask these questions to ensure whether or not the system is suitable for your trade.

  • How much time did you take to implement the software?
  • Did you provide training to your team? If yes, what training was needed?
  • What efforts had you made on the database to make it ready to use and useful?
  • Is customer support responsive, knowledgeable, and friendly?
  • Have you noticed improvements in the way you do your business?
  • Are there any features that have not met your expectations and needs?
  • Do they (the software providers) know your industry and estimating needs?

The real experience of businesses and construction professionals who have gone through the same process can help you make the right selection. In a nutshell, it is best to select a software solution that is designed, developed, used, and appreciated by the construction industry’s specialists.

The Takeaway

Construction estimating or pricing software must be quick, user-friendly, intuitive, and specially developed for your business type. You may also check how many people are using that system and ask them about their experience with it.

Remember that you’re not just implementing software into your business, but you’re partnering with a company or tool to take care of your current and future business needs. Making the wrong choice can make you spend a lot of money and affect your ability to bid on projects effectively. So, try to implement all the above points to select the best construction estimating solution.

By |2020-07-20T08:43:36+00:00May 28th, 2020|Construction estimating software|0 Comments