Construction estimation is a systematic process for predicting the costs of a construction project, including materials, labor, equipment, overhead, and profit, to formulate a comprehensive cost estimate. It helps construction stakeholders complete projects within budget and on time. As a construction manager or estimator, you must learn the art of creating accurate construction estimates. This comprehensive blog post will discuss the step-by-step process of construction estimates. Whether you are a construction manager or developer, these steps will help you create precise and effective estimations. Moreover, we will highlight the top construction estimation services available in NYC, such as My Virtual Estimator. Let’s begin this interesting discussion on construction estimates.
How to Write a Construction Estimate:
As we have discussed, construction estimates enable the construction stakeholders to estimate the project’s overall cost. Let’s begin by explaining how you can write an accurate construction estimate. But before we start learning the art of creating construction estimates, have you been googling for the best “construction estimation services near me?” Then, My Virtual Estimator can help. Let’s begin the process of creating a construction estimate:
Step 1: Project Analysis & Scope Definition
You can’t begin creating your estimate until you fully understand the project scope. Therefore, grasping the project scope is crucial before starting any construction project. The scope encompasses all deliverables, completion dates, labor costs, material costs, equipment expenses, types of services, subcontractors, and client expectations. However, to accurately comprehend the project scope, you must visit the site and discuss the deliverables with the clients to determine exactly what they want.
Step 2: Outline Rough Timeline
Once you understand the project scope, the next step in creating construction estimates is to provide a rough timeline. This timeline will give your client an idea of how long it will take to complete the project. Therefore, when creating an estimate, you must outline an approximate timeline that offers the client a rough completion date. However, it is crucial to give your client a general idea of how long they can expect the work to last while estimating labor costs. Having some flexibility when quoting dates is advisable to manage the client’s expectations without raising false hopes.
Step 3: Allocating Costs for Labor, Materials, and Equipment
The third step in writing a construction estimate is to allocate the costs of labor, materials, and equipment required for the project. It’s important to remember that costs fluctuate, especially for more expensive materials. You should shop around and get a good idea of the costs and quantities of materials. Labor charges are very high in NYC, so when creating an estimate, calculate the number of hours of labor required in terms of working hours. However, remain flexible about the material and labor costs, but ensure you don’t overestimate them, as this can increase the overall project cost.
You can’t perform all the tasks alone; you must contract out a few tasks. Therefore, when making an estimate, ensure you include the subcontracting costs. For instance, you may need an electrician or plumber to complete the project, so you must subcontract those tasks.
Step 3: Create a Contingency Plan
You must create a contingency plan once you understand the project scope, set a realistic timeline, and allocate labor, materials, and equipment costs. This plan helps estimators and construction managers deal with unforeseen circumstances that cause unwanted delays and financial losses. These unexpected circumstances can be due to changes in the design, client requirements, weather conditions, local law restrictions, labor or material shortages, or any other reason that might arise during construction. A contingency plan in your construction estimation will enable you to handle every situation effectively.
Step 4: Document Estimates
Once you have identified the project scope, gained a more satisfactory understanding of the total project cost, and established a contingency plan, document every detail. Include timelines, labor, materials, equipment, contingency plans, and overhead costs. Ensure that the site terms and conditions and project executions are incorporated. Documenting the estimates involves construction stakeholders, including construction managers, contractors, subcontractors, developers, and clients. Ensure they provide a copy of the terms and conditions to avoid issues as the project progresses.
Step 5: Make Your Estimate Stand Out
Construction estimates are the roadmap that guarantees the success of any construction project. Let’s recall the steps we used above, such as:
- Project Analysis & Scope Definition
- Outline Rough Timeline
- Create a Contingency Plan
- Document Estimates
To create construction estimates, we need to follow the steps outlined here. The final step is to draft and submit the complete estimate to the client. Ensure that you use professional language in your estimates. Avoid industry jargon or abbreviations that may create confusion or misunderstandings for customers. Utilize proper documentation when preparing your estimates. Additionally, you can use estimation software and seek assistance from a professional company like My Virtual Estimator to help create your estimates.
Bottom Line:
Construction estimating is a systematic process that involves analyzing project details, conducting material takeoffs, and assessing labor needs. It also involves calculating costs, including materials, labor, equipment, overhead, and profit, to produce a comprehensive cost estimate. This step-by-step process involves understanding the project, setting a rough timeline, creating a contingency plan, documenting, and writing the estimation professionally.
If you are a construction estimator or manager looking for precise construction estimates, My Virtual Estimator can help. With years of experience in construction estimation for commercial and residential projects, they have the experts to provide accurate estimations. You can count on them for all your construction hesitation needs in NYC. Whether you are looking for commercial or residential estimations, they are the right people to connect with.
