Back to Basics: What is a Construction Estimate?
While construction estimates are hardly always accurate to the cent, successful projects start with accurate and detailed estimation efforts. If not, there can be ethical and even legal risks. For instance, in March, the SEC launched a federal probe into two leading construction contractors to uncover why their estimates were inaccurate.
The initial construction estimating process for large-scale projects usually begins with a specific team, known as estimators. They estimate the project by gathering proposals, plans, specifications, and related documents.
Overall, an estimate is the total price of the project, which includes all expenses, like materials and labor. It’s also important to note that there’s a common misconception around the definition of a bid vs. an estimate. A bid is a finalized offer in order for the construction project to proceed. In a bid, a contractor often specifies a construction price and project timeline. Usually, an accurate estimate is set before you place a bid.
Material Takeoff & Estimation Process
Working as a professional company, we are working with an aim to facilitate our customer in every possible way. Keeping this in mind, we have kept our process of estimation very easy and simple. Our process is having the following steps:
- First, there is a formal meeting of the construction management team. Here the planning and assigning of tasks are done.
- Quantity estimators will be telling the client about the digital quantity takeoff with the help of popular takeoff software.
- Pricing includes the material costing from procurement supplier pricing, costing catalogs, reference books, and online databases .
- Some additional considerations are also an important part of the process. This has conditions like inflation, material logistics, and site constraint.
- Quality Control is a significant part of the entire process. The audit is done by a Senior Cost Manager. An expert will evaluate the information, procedures, strategies, and rules that are used during Cost Estimates.
Construction cost estimating services
- Conceptual Project Budgets
- Construction Bid Estimates
- Contract Cost Review
- Lump Sum Estimates
- Fixed Price Estimates
- Value Engineering Cost Estimates
- Quantity Take-offs
- Life Cycle Costing
- Change Order Evaluations
- Material Escalation Analysis
- Project Closeout Costs
- Claims Pricing and Evaluation
Why Outsource Estimating is Right for Your Business
Construction estimating is both an art and a science. Real Estimating has been providing construction estimates for generations and our finger is on the pulse of the industry!
Maybe you need some assistance on estimating a project or need to supplement your estimating team during high volume cycles. Maybe you are looking for another perspective, or just need to concentrate solely on the projects you already have, but understand the importance of bidding on new projects, Real Estimating is the right solution for your business.
We rely on a variety of pricing structures and databases, which have been developed over many years, when conducting our estimates. We have the ability to adjust our pricing regionally using the latest R.S. Means established construction standards for open shop or union contractors. Get to know more about us.
United States Construction Cost Estimating Data
Compass International, Inc. is a professional commercial construction cost estimating and consulting firm. Our United States services include the publication of seven annual Industrial and Commercial construction cost data yearbooks, project and construction management, estimation reviews, audits, and validation services. We also offer value engineering, strategic planning and in-house training.
Information for United States Cost Books
Many people wonder where we get the information for our cost books and if it’s reliable. We compile the information from numerous sources, which include real world cost data, government information agencies, international development banks, various country trade agencies, various architects and engineers, E.U. commission reports, and our own consulting services. Currently we have at least 350 projects in the United States.