Construction projects include the planning and execution of many teams, materials, and processes in construction projects. Constructing a building is considered successful when the result is achieved within the timeline and budget. The construction estimator is a crucial component of the construction project success formula since he/she is responsible for cost and budget estimation. The role and significance of various estimators and estimating services for the accurate determination of construction project plans and costs will be discussed in this blog post.
It is imperative to understand the role that the estimator plays in the completion of a construction project before moving any further into the topic.
It is the role of a construction estimator to estimate the overall costs and amount of material and human resources that may be required in the completion of a construction project within a specific requirement. This is important in ensuring that the general contractor is capable of offering competitive bidding while at the same time making profits on the project. During the project, the estimators keep on monitoring the costs to keep the project within the set financial plan.
Types of Estimators
Some estimators focus on estimating costs for certain construction trades. Knowledge of the different trades and their abilities helps ensure that the estimate is detailed enough and correct.
Cost Estimator
This document indicates the total cost of the project for all electrical systems that include lighting, power and panels, communications, security, fire alarms, etc. The Electrical Cost Estimator must be conversant with electrical codes and components, cost of materials, and labor. Contracting out electrical estimating to such firms is advantageous since they are knowledgeable in electrical work.
Budget Estimating Services
Accurate cost estimators in general construction work create a cost estimate right from the preparatory stage of a project, thus having the initial viability and profitability information of investment undertakings. The estimate gets refined as the amount of detail in the design work progresses. Electrical Estimating Outsourcing services use professional certified estimators who can develop various budgeting scenarios based on the data provided. It will be important to note that the general contractor relies on the estimate for bidding and other project planning purposes.
Importance of Accurate Estimating
Underestimating Costs
An estimate that is far below the actual costs results in an overrun of the budget and slows down the completion of a project as the Construction Budget Estimating Services contractor looks for more funds. The contractor also becomes less profitable in such instances due to underbidding.
Overestimating Costs
Offering a bid price higher than other bidders results in the loss of the project to a contractor. Overestimates also point to inaccuracies in deciding the right time to buy materials and how to schedule the work. The remaining budget becomes useless and does not benefit the client in any way if the contractor oppositely overruns his budget.
It is therefore important to get the estimate right. The estimator also cooperates with the design team and contractors to adjust such estimates at each stage and to monitor the costs effectively.
Construction Estimating Best Practices
Follow Standards and References
Estimators employ other data elements in arriving at estimates, which include prior experience with rates for material and equipment and the established labor hour rates. They often cite primary cost data references, which are specific to location and time. Estimators also conform to conventions such as the MasterFormat system that provides specific ways of describing project details across trades.
Incorporate Adequate Contingencies
It is not acceptable to add some amount of money on top of the estimated padding as a way of protecting the project from other expenses that may arise. In the context of contingency reserves, it is no longer done as a mere guess by the estimators but more of a scientific approach based on risk factors and uncertainty level in every phase. Reasonable contingency amounts do not hinder funds from being locked down while ensuring there is cover for the unforeseen.
Utilize Estimating Technology
Current estimators are practicing the use of estimating software tools that come with preloaded cost data. EnumField of course, real-time synchronization with quantitative takeoff and cost estimates derived from drawings. Some solutions integrate AI and machine learning that help to refine the accuracy of estimates over time. Technology is also useful in performing routine and intricate operations to provide better input to estimators.
The estimator’s estimate sets the financial framework for the project. Their inputs at every stage are very instrumental in ensuring that the projects are on track. A professional estimator, following the best practices on how to use technology and analysis, helps the contractor deliver projects within the estimated cost.
Conclusion
Estimating is one of the most important strategic activities in construction projects as it has significant impacts on construction project outcomes and profitability. They also have specialized knowledge of the domain, which lets them track costs with great detail in each phase while working in conjunction with other teams within the project. Those involved in construction projects should ensure they employ skilled in-house and outsourced estimators as well as appropriate software solutions. Backed by benchmarking in estimations, estimators ensure that project management is successful by setting achievable financial goals that are in line with their estimated budget. I agree with the author and state that the construction estimator is the one that lays the groundwork for the success of the project.
