Residential Construction Cost Estimating
What is residential estimating?
For planning the Residential Construction Cost Estimating, a proper cost estimate gives the idea of the potential costs that helps calculate markups, allocate budget, obtain financing, quote prices to the clients, and negotiate with contractors and subcontractors through our Residential estimating services. Get to know more about us!
PORTFOLIO OF RESIDENTIAL ESTIMATING SERVICES PROJECTS
- Single-Family Residential Houses
- Multi-Family Residential Houses
- Duplex/Triplex Houses
- Custom homes
- Modular homes
- Home additions
- Home Improvements
What do estimators do in construction?
Construction cost estimators prepare estimates for buildings, roads, and other construction projects. They may calculate the total cost of building a bridge or commercial shopping center, or they may calculate the cost of just one component, such as the foundation.
Our deliverables of residential construction estimating services include:
- Residential Detailed Estimate tailored to your specific needs is a contractor, home builder, owner for bidding, procurement, budgeting, and financing purposes.
- Digital Takeoff EXCEL files
- Material Types & Quantities
- Material & Labor Costs
- Coloured Marked up Plans
- Complete Takeoff Summary containing labor hours, permits, taxes, contingencies, overheads, profit percentages, and various other costs.
Why are estimates important in residential construction?
Estimates are an essential part of the pre-construction phase of a building project. Builders + remodelers need an effective estimating system because these documents are critical to winning new clients and earning revenue. Poor estimating can result in lost clients, or worse, angry clients. When clients are searching for building companies to work on their projects, they compare estimates from different companies to make a decision. If a builder completes a project at a price far above the estimate, the client may think they are overpriced. On the other hand, if a builder is too conservative with their estimates, he or she might lose clients to more aggressive builders. It’s a balancing act.
How do builders + and remodelers estimate construction projects?
While the specific details of an estimate vary with the building company’s location, region, market, and clients, a typical construction estimate template will have several standard elements:
Strong estimates are structured, dividing costs into patterned groups. Many builders draft estimates based on the natural timeline of a construction project, or they borrow organizational structures from construction industry leaders such as the National Association of Home Builders or CSI formats (see the attached examples below). Some builders organize their estimates into two tiers of information while others use three tiers. A two-tiered structure lists cost categories and each category’s relevant costs. Three-tiered structures include more information for builders + and remodelers who prefer to separate standard specification costs from selection costs. To keep everything streamlined, an organized builder will structure his or her estimate’s costs to align with the project’s budgeting and/or accounting formats.
Even if exact numbers and prices change, some of the standard math used to come up with the appropriate prices and profit in an estimate might be consistent from project to project. For example, some builders + and remodelers always calculate concrete by leveraging the specific width or length of the area. Finding ways to set parameters to record these common measurements sets builders apart and creates a quick estimating system.
Most prices on individual projects vary on design and scope. Looking deeper, the average builder or remodeler may realize their base price per unit stays consistent while quantities and exact measurements change based on the size and scope of the project. If this is the case, builders should try to templatize these prices for future estimates. There are several methods available to help builders + remodelers master their estimating process.