It is important to note that the accuracy of the estimates makes or breaks any construction project. However, it is not as easy to come up with accurate estimates. Both internal and external factors can cause a project to exceed its budget if proper steps are not taken when estimating the costs. When every construction estimating company adheres to the best standards of estimation, then all the stakeholders involved in the project will be protected from risks that may lead to losses. This blog seeks to discuss some of the most effective strategies for ensuring accuracy in estimates for construction projects.
Gather Detailed Project Specifications before Starting
The initial step towards developing a dependable estimate is to receive clear and comprehensive information about the project scope from the owner and/or the general contractor. More details on specifications of the construction site, project nature, requirements for material, labor, equipment, codes, standards, the duration for completion, etc. should be sought by construction estimating services. Estimate pricing is sensitive to any unknowns or missing information that may exist in the project environment. During the project review construction companies mustn’t leave any stone unturned so that the estimating teams would fully understand what has to be priced out.
Analyze Historical Data
Having gone through the detailed evaluation of project proposals, construction estimation service teams will then proceed to examine the statistical information of previous construction projects. This process entails the comparison of costs for the same or similar activities, location, project duration, crews involved, types of materials used, expected and actual time frames, and the resultant profit or loss. To do this, the current project is compared with historical benchmarks, which allows the estimators to consider possible deviations and errors when developing their future estimates. If there are any substantial disparities between current project costs and prior data, they should be highlighted and investigated further for more accurate estimations.
Perform Site Visits
Although it is important to review project requirements and documents, there is nothing like construction companies going to the job site to physically assess requirement details and conditions. The estimator can confirm specific dimensions, assess any challenges due to terrain or existing buildings, identify places where materials and equipment can be delivered, discuss issues with the owner on-site, and obtain the most up-to-date information. Some changes are bound to occur after the plans have been reviewed the first time, so a brief tour allows estimates to be updated where appropriate before final prices are set.
Choose the Right Software
The use of the right construction estimating software can therefore increase accuracy because the software comes up with estimates, predictions, and reports that are supported by data. Software needs to integrate seamlessly to transfer plans, drawings, project specifications, and other information that is vital in developing full pricing into formatted templates for estimators to work on. The rates for billing, materials, equipment, and so on should include digitized figures from other credible sources outside the organization. Estimators can then be assisted by the software algorithms to display historical trends handle updates of various factors and provide fast modifications to lump sum or unit prices. This makes it possible for the construction estimating service team to cross-check their manual calculations with dynamic models.
Add Healthy Contingencies
As much as planning goes on and software is improved, something will always come up at the construction stage. Total cost estimates can be adjusted by contingency buffers to reflect possible delays in delivery or difficulties in finding a suitable subcontractor. The scope of the contingency allowance also extends to the minor discrepancies in the project requirements that might be seen after the estimating stage. While owners want the lowest possible estimates possible, going lean without contingency can be disadvantageous since the project goes over budget. Contingency amounts should be estimated by comparing past projects of similar size and complexity to the project at hand. The project management team can also help with this aspect. Estimation accuracy means to get the best acceptable compromise between precision and error for problems.
Conclusion
It is still essential to develop cost estimates, but it is also very difficult when there are many activities within a large construction project. Through historical data utilization, the evaluation of all plans before moving forward, direct visits to the construction site, the use of solid construction software, and integrating reasonable contingencies, construction estimating companies can do everything possible to strive for the construction estimating that will turn out as accurate as possible once the real construction is underway. Given the number of interested parties that depend on the actual level of accuracy of the estimate at different stages of a build, adherence to best practices regarding estimation is the most effective way by which contractors can manage and mitigate risks arising from uncertainty during the lifecycle of a construction project.
