Construction Estimating : The Basics

Whether you are a seasoned general contractor or new to the construction industry, the art of construction estimating (yes... the art) is essential for the success of any project. Accurate estimating ensures that projects are setup with the appropriate resources such labor, equipment, and materials . Here are some key tips to help you improve your construction estimating skills:

1. Detailed Takeoff: Begin by conducting a detailed takeoff of the project. This involves creating a comprehensive list of all materials, labor, equipment, and other costs required to complete the job.  Best practice is to utilize historical data.

2. Use Estimating Software: Consider investing in construction estimating software such as On-Screen Takeoff and Destini, however - there are many scheduling software's in the industry that can also tackle the job for far less upfront costs (such as Microsoft Excel). The professional software tools can help you create professional estimates more quickly and accurately than manual estimating.

3. Account for Contingency & Allowances: Don't forget to account for contingencies & allowances in your estimates. Factors such as weather delays, design changes, and unforeseen site conditions can impact the project's timeline and budget, allowances should also be considered for scope packages - which would be money set aside for scope that is known but not fully defined.

4. Stay Updated on Costs: If you are self-performing scope, make sure to keep yourself informed about the latest material and labor costs in the market. Prices can fluctuate, so regularly update your estimating templates to reflect these changes.

5. Collaborate with Subcontractors: Work closely with subcontractors to obtain accurate bids for specialized work. Their expertise can help you refine your estimates and identify potential cost savings.

6. Review Past Projects (Historical Data): Look back at past projects to analyze where your estimates were accurate and where they fell short. Use this information to improve future estimating accuracy.

By following these tips and continuously refining your estimating process, you can become more efficient and more accurate at construction estimating.

I've got a video on Construction Estimating Basics (Click Here to Watch).

Cheers!