Construction estimating is a multi million dollar business. When a contractor is building a home or structure, there are huge amounts of cash involved that are transferred to the contractor in increments. It is critical the job flow that the estimate is done correctly to avoid any delays.
It is estimated that forty percent of a construction job is used for labor and laborer are paid an hourly rate. If there are any delays because of cash flow problems, the laborers still get paid the hourly rate for just sitting around doing nothing. This will add to the final cost of the project and the project will not be finished on schedule.
Construction Cost Estimating – How to do a Professional Job
There are a lot of factors involved in drawing up an estimate. Attention to detail and experience is needed to draw up an accurate estimate.
An experienced estimator knows that there are two parts to creating an estimate. The first part is deciding on what type of structure is being planned. Whether it is a home or business, or an addition to a home, or even a swimming pool, all parties’ involved need to sit down and form a plan. This gives the estimator a rough idea of what will be needed including any land that will be purchased for the construction. Once all of this is decided on, the next step of the estimate will be to hire a construction engineer who will examine the information that you give him, including plans for the structure, and he will then draw up an estimate for the total cost of the structure only.
The second phase of the estimate will be to take into consideration the cost of the rest of the project. An experienced estimator knows the market value of equipment and materials that will be needed for the construction project. He will know how many laborers to hire, and how long the project should take to finish. He or she will take the entire project into consideration, starting with the cost of the construction engineer and all of the rest of the project. A construction estimator has the knowledge and experience to give an accurate estimate.
A construction estimate is designed to give you an idea of what the total cost of a project will be.
One a person has an idea of what a building project will be, they will be able to get the financing that they need to complete the project. It is critical that you have all of your financing in place before the project starts. Any delays in payment will result in delays in building project and will ultimately cost more money. you will need a constant cash flow to keep the project on schedule.
Nick Hurd is the developer of LiteningFast Estimating. LiteningFast is an estimating program that helps you estimate faster, easier and more accurately. It’s integrated with QuickBooks to provide job cost.
It was introduced to the market in 1994 and currently has over 3,500 users in the US, Canada, and around the world.
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