What is construction estimate?
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WHY INVEST IN COST ESTIMATING
How much does a construction estimator charge?
How much do contractors charge for labor?
The Benefits of Using Construction Estimating Services
Here are are the top five benefits of outsourcing your cost estimation to an estimating service:
Win More Bids with Fast, Accurate Estimates: You don’t have to be an IT genius. Goodbye software updates and training! Instead of spending a lot of time trying to install updates, figure out tools or simplify your estimating process without oversimplifying the pricing structure, you can focus on getting the job done, whether that involves drumming up new projects to estimate or simply working on the projects you’ve already won. Let the estimators with decades of construction estimating experience keep on top of the changes while you get back to making a profit.
Eliminate Overhead that Cuts into Profit Margins: When you outsource construction estimating, you’re not paying an idle estimating team. Instead of waiting for you to provide more projects for them to estimate, the construction estimating service simply goes on to its next customer’s projects, then gets back to your next set of projects when you provide them. You’re not paying estimators to simply sit around killing time without bringing in any profit; you’re paying them to work. Why keep idle estimators on the payroll with expensive benefits and taxes when you could instead pay a service that only charges you when they’re working?
Save Money by Increasing Margins: You save money in the long run. Construction estimating services not only save you money by reducing overhead, but they also save you money by delivering accurate estimates that ensure projects are completed under budget. Reducing overhead and completing projects on or under budget will increase your net profit margins, so you can channel that cash into investment in your business, i.e., making it easier to invest in that new boom lift, power tools, on-site computer cabinet or any number of other new assets that will help you get ahead in a highly competitive market.
Eliminate Headaches and Wasted Time: You don’t have to chase down material price changes. Copper’s up, steel’s down and aluminum is bouncing like a yo-yo. Whatever is happening with your material prices, you don’t have to be the one chasing those prices, spending hours trying to get and track the latest price sheets from your clients. Nor do you have to spend days agonizing over every detail in your estimate that is likely to be inaccurate. Simply turn over the plans on the latest project you’ve discovered and let the construction estimating services handle it for you.
Grow Your Business: More importantly, you can focus on what matters most– running your business. It’s easy to get distracted by all of the details in running your business, but when it really comes down to it, your expertise is construction, not running a computer, fretting over spreadsheets, or worrying over material price estimates. By outsourcing your estimating process to construction estimating services, you can ensure that you’ve got plenty of time to keep your business running in the black instead of running over budget–again.
COVID-19 and the fallout has been a tough pill for America to swallow. One of the major lessons learned is to restructure the interoffice staff to have the ability to work apart or virtually. Depending on the company size, it may be a good fit to help cut costs with the main office overhead if set up properly.
Another avenue to pursue could be to outsource some tasks. Many contractors are using Outsource Estimating and Estimating Companies to assist them with their office staff and team. It relieves them from the payroll burdens and Workmen’s Comp. Insurance, vacation pay, sick pay and more. Depending upon the experience level that could well equal a cost of 70K-100K or more per person annually. Outsourcing should certainly realize a company saving. Every year the construction industry goes through cycles which has Ebbs and Tides. Rarely does an estimator have 52 weeks of fulltime estimating work. During those weeks when an estimator is not needed, the contractor should not be spending money needlessly. The same can be said for Project Scheduling, Submittals, Owners or Site Rep Services, Project Managers. This is when outsource estimating services can be extremely beneficial to construction companies of all types, including residential construction, and commercial construction.
We must all adapt to the new ways. Be Safe!