How to Develop a Winning Construction Estimation Strategy
Have you ever pondered on the ins and outs of the estimating process that a construction project management requires for a successful endeavor? Your answer to this is might yes or no. It is necessary to keep in mind that for an accurate estimate, an in-depth understanding of a project proposal is the first bet to win. For this, a thorough cost analysis takes a lead to build a foundation for subsequent steps. A good construction estimation strategy starts with getting a clear picture of a project through the calculation of entire cost elements. Based on the cost results, further decisions are made.
In some cases, project managers or estimators focus on other steps of the estimation process instead of going toward accurate cost estimates. This is a high factor for a project to fail. As a result, the company has to bear losses. So, a cost-estimating strategy is a must to be in a winning position in the industry. This aids in a project accomplishment within a given time, and budget, and up to the customer’s satisfaction level. For your assistance, we have gathered some useful points that you should consider to develop an unbeatable estimation strategy with a focus on the importance of an estimator in this regard.
Role of the Estimator in Framing an Estimating Strategy
The construction estimator, undoubtedly, holds a position as a game-changer in any construction project. He/she plays a key role in framing a worthwhile construction estimation strategy to take the project to the leading status. The accountability for estimating the project’s cost concerning the scope of the project, material quantities, labor, and other cost factors lies on the shoulder of an evaluator. To cope with this end, it is essential for him/her to have sound knowledge about the construction industry. Also, by staying tuned with the emerging technologies, materials, labor demands, and equipment an uncomplicated process can be put in place.
For a construction project, the estimation of even a minor element by incorporating a good strategy matters a lot. This can only become possible if the estimator possesses relevant qualifications and experience for an assurance of an accurate cost estimate of the project. A good estimator always goes with a systematic approach to handle the entire cost process with utter diligence. He/she should consider all the cost factors, and also provide a thorough breakdown of cost units.
Consideration of Cost Factors in the Construction Estimation Strategy
As already discussed earlier, without knowing the exact costs of all the underlying divisions of the project, it is impossible to reach the milestone of success. There are several segments associated with the construction project. Cost identification of each is imperative before moving on to other phases. Just give it a good read to have a better understanding of it.
Material / Quantity Takeoff
The head of material quantities acts as a major cost factor in any construction project. Not all types of materials are used for all types of construction. Low-budget projects require less costly materials while high-end projects demand costly materials. The estimator should know well the cost of different types and quality of materials, as well as their transportation and storage needs.
The worker or labor counts as another cost factor in the construction project. The estimator should comprise a complete list of varying labor categorizations concerning their man hours, qualification, and salaries for deriving accurate estimates.
Tools and Equipment
Construction cannot progress without using different tools and equipment. These also hold some cost that adds to the total cost estimation of the project. The estimator must have enough awareness about the particular type of equipment needed for a specific project, and the associated cost to that relating to its renting, purchasing, and maintenance.
Legal Permits and Taxation
All construction projects require some sort of legal permit for carrying out the work. The estimator must consider the cost of such permits comprising building permits, zoning permits, and environmental permits. Also, the cost of taxation levied should be added.
Analysis of Project Scope for a Strategic Construction Estimation
After a thorough cost determination, analyzing the project scope comes later to have a winning estimation strategy in place. The project scope refers to the size and complexity of the project. Any individual requirements or confrontation that may impact it in its entirety also comes under. Therefore, an estimator must absorb a complete perception of the project plans, specifications, and any other documents relevant to its completion.
The implication of Software Tools in Framing Strategy
Software tools are also as important as other segments of consideration in the development of construction project estimation strategy. A range of software tools like BIM, construction estimating software, project management software, etc., are easily available. It can help construction estimators in evaluating to-the-point estimates in a quite quick and efficient manner. Moreover, it plays a role of a show stopper or you can say the endpoint of a strategic estimation plan.
In a nutshell, a winning construction estimation strategy involves a vivid consideration of all the cost factors, a careful judgment of the project scope, the application of software tools, and the selection of a qualified estimator. Moving systematically assists the construction teams in creating exact estimates, effective cost management, and on-time project delivery.