An Overview of Construction Cost Estimating
Understanding how to properly estimate construction costs is vital for the success of your contractor business. You need to know what materials, tools, and manpower you’ll employ to finish each job. Construction cost estimating isn’t guesswork. It involves reviewing plans, specifications, supplies, subcontractor tasks, and more.
Knowing how to estimate construction costs and project time will help you place more competitive bids, win more jobs, and grow your business.
Hit The Books
The first step in construction cost estimating is to review all the building plans and blueprints. Blueprints contain all the information you’ll need to understand what tasks need to be completed and what supplies you’ll need to complete them. Examining all the plans and specifications will let you know if there are any special tools, supplies, or installations you’ll need to consider in the overall cost of the job.
Make a List
Next you’ll need to create a list of all the tasks to finish the job. This could include drywall, painting, plumbing, carpentry, cabinetry, roofing, and more. This process will also let you know if you can do all the work in house or if you’ll need to use subcontractors as well.
Each task needs the right materials, tools, and supplies to be completed properly. You’ll need to calculate and determine the cost and quantity of goods for each job. Once you know what tasks, materials, and supplies you’ll need, you should determine the cost of each task.
Set a Price
Each task requires time and manpower to complete. Construction cost estimating is all about, you guessed it, cost. Each item on your bid sheet needs to have a cost estimate associated with it. This should include the size of the job, materials needed to complete it, and time you’ll need to expend on each task. Don’t forget to include hidden costs like permits and tool rentals.
Once you’ve determined each task required to finish the job, attached a price to each task, and included miscellaneous costs like permits and rentals, you can add them all up and arrive at a final estimate. Remember that your final estimate doesn’t include your profit. You still need to add a reasonable margin for profit before you submit your bid for consideration.
Learn From the Best
This overview of construction cost estimating is far from comprehensive. In order to create the most efficient, effective, and profitable estimates, you should take a construction estimating course to learn the intricacies of the process.
Contractors License Resource Group offers blueprint reading classes and construction estimating seminars to help you learn the ins and outs of construction cost estimating. Knowing how to create an estimate will help you win bids, create business, and grow a profitable career. Contact CLRG now to sign up for one of our classes and start creating comprehensive estimates and bids today.