Delving deeper into construction cost estimation may seem a lost cause, but instead is an art once you understand the basics. You are no longer just highlighting the major details of the project, rather you are performing the abstract-level estimation. What that means in the practical world is that you will not only get the accurate details that you require, but also other factors.
The best practice of construction of cost estimates depends on a thorough understanding of construction methods, materials and business practices, and the construction industry. For such an accurate and precise estimate, you need to have experts provide you with an estimate so that you can streamline your project growth and success. SMA Estimating LLC provides you with services of cost estimation performed by experts so that errors can be minimized.
Why is an estimate for construction important?
Having precise construction cost estimates is an essential and crucial factor for architects, engineers, and contractors (AEC) as it plays its part in the success and failure of the project. Estimating costs provides the project team with a realistic understanding of what would be the project cost. It would be essential for securing funding, managing budgets, and delivering the project on schedule. Following are a few reasons behind the importance of estimating construction costs for AEC professionals:
Feasibility of project
By having the construction cost estimate, we can determine the feasibility of the project like if it would be completed within the budget or not. This information is essential for project owners by making informed decisions about the project status.
Risk management
Risk can be identified and then mitigated by over-viewing through estimating the construction cost of the project. AEC can develop contingency plans to implement, so the overall loss in the project can be eliminated.
Resource Allocation
Resources for the project can be allocated smartly if AEC professionals know about the construction cost of the project. So, resource distribution can be done through proper prioritization of tasks.
How to estimate construction?
Construction projects can be complex and costly endeavors, and accurately estimating costs is crucial to ensuring success. In short, we just can’t deny the significance of cost estimation for construction projects, as it plays a vital role in project success. Here are a few disciplined ways to make your construction cost an art for your project.
Detailed understanding of project scope
Before starting with the cost estimation process, it is significant to have a clear and concise project scope understanding. The scope mainly includes the design, labor, materials, and other essential factors which will directly impact the overall cost. Architects are responsible for designing the building, which includes the floor plan, elevations, and specifications. Engineers are responsible for the structural design of the building. Contractors need to construct the actual building.
This is where the engineer and contractor come into the field. They work on reviewing the plans and specifications to make sure that they are complete and accurate. The other factors need to be considered like location, market conditions, and regulatory requirements while estimating the cost. For example, if the project is situated in an area with high labor costs, then the estimate needs to be adjusted accordingly.
Gathering information
The next step in the cost estimation process is to gather the required information. AEC all plays a role in the process. ts work on providing the detailed drawings and specifications that contractors use to create a bill of quantities. Engineers provide detailed structural calculations and design information that later contractors will use to estimate the cost of material and labor.
Another essential and critical part of the information-gathering phase is to analyze the historical data for similar projects. This helps the AEC entity to play their role in estimating the cost accurately and identify the areas where cost can be reduced.
Creating a cost Estimate
The actual process of creating a cost estimate involves breaking down the project into individual components, such as labor materials, and equipment, and estimating the cost of each. This is where estimators follow the process of estimating in order to provide precise estimates.
Estimators are responsible for estimating the cost of materials, including concrete, steel, wood, and other building materials. They also estimate the cost of labor, including the number of workers required and the duration of the project. Contractors use this information to create a bill of quantities, which breaks down the cost of each component of the project.
Communicating and adjusting the estimate
Communication and adjustment of changes are crucial as well as significant during the cost estimation process. AEC entities need to work together and communicate on the changes so that the project plan is according to schedule. The change must be adjusted as needed based on the fluctuation in project scope and market conditions.
Conclusion
Accurate and precise estimation is the key to a successful project. AEC entities need to communicate and play their part in such an efficient way that the occurrence of unavoidable risks can be eliminated. The main activities are to define the scope, gather requirements and provide cost estimates based on expertise as well as historical data.