Using Technology In Estimating Construction Costs For More Accuracy
A construction cost estimator knows that there are a lot of expenses that need to be tracked when estimating a job. Many people who have been in the industry for a long time have always relied on pen, paper and a calculator to estimate a job. They feel that their experience in estimating out weighs the convenience of the new software programs. However, what they do not realize is that using this software can save them a lot of time and headaches.
Projecting Construction Costs Is The First Step To A Successful Project
There are a lot of costs that have to be considered when estimating a job. Both the seen and unseen cost can delay a project if they are not calculated correctly. Land acquisition, as well as assembly, holding and improvement are just a few of the things that need to be taken into consideration. Others include Planning and feasibility studies of the structure; capital costs for a construction project are just a few of the costs that need to be considered.
You will also need to take into consideration the financial fees, which include filing fees and architectural and engineering design. These factors need to be taken into consideration before you can estimate any other part of the project. When you have these numbers, you can then go on to add the construction cost, labor and materials, insurance, taxes equipment and all of the other factors that will make up your bid or proposal.
You have to take into consideration that maintenance costs will be a big part of your expenses. It is critical that you account for all maintenance costs in your estimate. This includes the operating staff, land rent, periodic renovations, labor and material for maintenance and repairs, insurance and taxes, financing costs, utilities. There will be other expenses that you will need to deal with as they pop up, however, with the estimating software; it will not be a problem.
Construction job come in all sizes, and there are factors that need to be taken into consideration such as the location of the job and the efficiency of the management team. There a just so many things that needs to be figured into an estimate, that it will continually be revised if you do not have the experience or the software to create an accurate estimate. When it comes to vendors, there will always be something that has come up that will delay your project. This is a given in the construction industry. It has caused many estimators to create a back up plan when they are estimating a job.
An experienced estimator will allow for all delays and have a contingency plan that will allow the project to move forward without delay. They will always set aside a certain amount of funds that will allow construction to continue to insure that their deadline is met without the frustration and headaches that vendors can cause.
The size of the contingency should be based upon the size of the job. An experienced estimator will have the knowledge of roughly how much each sized job will cost and base his or her contingency on that. If all goes off without a hitch, there will be an excess of funds to use for addition work or anything else the client wants to do.
About the Author
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. Using Technology with Construction Cost Estimating - for more accuracy 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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