Construction Estimating Services-Cost Estimator Company-Estimating Company

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Why You Need A Good Cost Estimator

Cost Estimating has been a part of the construction industry since any structure was ever built. What better way is there to figure out how much a project will cost, present clear expectations to clients, and keep the project cost managed throughout the job? You wouldn’t buy a car without knowing the overall price, what your options are, and how much the monthly payments will be, would you? The last thing any consumer wants to do is to haggle over construction project costs with an ‘invisible’ person behind a closed door. Cost Estimating Construction in today’s building industry spells out, not only the cost of a job, but allows the job to stay relatively financially secure, with the least amount of cost overruns.

Quality estimates are typically comprised of Direct Costs and Indirect Costs.  Direct Costs typically include and cost or expense that can be associated with the specific project. This would contain team wages, costs of direct materials, fuel for equipment, etc. On the other hand, indirect costs would include quality control, management, security costs, utilities, overhead, costs that are shared across a number of projects, not billable to any specific job.

When this type of estimating is utilized in the construction industry, reports can be created throughout the time-line of a job in order to better understand and project the actual costs as it moves toward completion. Changes in actual costs vs estimated costs can be understood and problems can be resolved before they can get out of hand. Cost Estimating is always an ongoing project, especially during the execution of a large, time-consuming job. Whether you’re in the residential or the commercial construction business, the reports that can be generated by a good cost estimator may prove to be crucial. Changes often occur and become necessary  during the building process and as a responsible builder you should be able to insure accuracy and positive outcomes. Proper estimating is an on-going process of checks and balances and is the key to best protect the construction company as well as the client.

 

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Getting It Right The 1st Time

Do you need your construction estimate ‘yesterday’? Is the material take-off list imperative for your bid, and the bid opening is due tomorrow? As you know, this situation happens more frequently than we’d like.

Calling an outsource construction estimating service is a convenient way to go to assist you when  these predicaments arise. You’ve seen their advertisements  promising your completed estimate in one day, no matter if your  plans or drawings consist of 1 page or 30.  Whether your company is large or small, the ‘bottom line’ will usually guide your decisions to get the job done. Calling them seems the right way to go. But before you do…know who you’re dealing with, read the fine print. Generally, people learn that what sounds ‘too good to be true’, usually is!

As a contractor you need an outsource estimator that, not only has the  numbers,  but also has your back. This process is not like buying a hammer at a hardware store. Establishing a relationship with the outsource estimator of your choice, requires learning to “dance” with one another. They should be prepared to work with your company as a teammate, following your lead on projects, and working together. Communication is key, and being able to go over a job with you and explain important points of the estimate with you is a major part of the process.  Achieving this requires a construction estimator that is qualified to examine your plans thoroughly, making sure that they are ‘all inclusive”, and that the scope of the job and the specifications are clearly understood.

Taking off plans can be as easy as putting measurements in an estimating program. But when construction estimators can not explain how and why the calculations work in your specific project, it can lead to errors, leaving you scrambling for information and the correct numbers to win the job for your business. Ever hear of the old saying, ‘cheap is expensive’? Inadequate  estimating can lead to many unforeseen on-the-job difficulties and problems. Although many construction jobs require legitimate change orders,  a comprehensive original bid package can sometimes help to cut down on ‘in-the-field’ alterations and possible misunderstandings on the job. Having a construction estimator that understands  a defined  scope of work for a job, and can prepare project schedules that work for you and your company. This can ultimately save you money in materials and prevent an owner or contractor from facing costly work stoppages or delays, while resolutions to the problems can be found.

So how do you get it right the 1st time?? Stay true to your own high standards as a contractor.

  1. The construction estimating company you choose should have a keen eye for reading construction Drawings and Specifications.
  2. Find the construction estimator that best reflects your own standards, qualities, and integrity.
  3. Make sure they have ‘on the job’ experience, which gives them a deeper understanding surrounding the scope of a job and timely scheduling to save you time and money.
  4. Be sure that the outsource estimator is someone you can the build a relationship with; this makes future projects easier to navigate, leading to positive results.

Most of all, as you keep an eye on your ‘bottom line’, remember that you need the information that is crucial to winning the job bids you want. In this case, practice DOES NOT make perfect. The ‘practice’ only costs more money in the long run. The right construction outsource estimator can help you get it right the 1st time.

 

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Where Did The American Construction Worker Go?

Sure, the building business slowed down for a spell!  Back in 2010 and 2011, things looked pretty bad for the Construction Industry.  However, now it is on the rise, fast and furious. In many cities across our great nation, the building of residential and muti-residential homes can hardly keep up with the population booms! The Bureau of Labor & Statistics,  & the U.S. Department of Labor, states that the construction industry has projected growth rate 12% faster than the average, for all occupations.  The Construction Industry is now suffering a major gap in the skilled and unskilled labor force to keep up with work flow. Some businesses are having difficulty filling skilled labor positions, which in turn is preventing some delays in the completion of projects, according to the Bureau of Labor and National Association of Home Builders (NAHB)

Why is this happening now? Did they all disappear? Well if you look at the situation on the surface, it would appear to be so, but not really.  When the Construction Industry bottomed out, so to speak, back in 2011, about 2.3 million construction jobs were lost. There were about 1 million less residential construction jobs to be had. Many of the skilled workers dropped out of the industry and never went back, some retired, and some went toward college educations and office jobs.

Now that we have discussed how history and statistics explains part of the decreased numbers of construction workers. Maybe we can touch on some reality.

It is tough to attract young workers when there is the perception that construction work is dirty. That is not perception…that is fact. But, what about when you create something from the ground up and get that feeling of personal pride? The personal satisfaction of a job well done?  Construction does not always remain in the trenches. Learning and working a trade can lead to personal growth and self-education. Many individuals have become more, perhaps a Construction Estimator, or a Commercial Estimator.

Another factor that young people of today have noticed is that during the last recession, the construction industry suffered some periods of unemployment. What they do not see is that a national recession usually adversely affects every part of economy. In fact, residential construction and commercial construction is coming back quicker and stronger and will remain so for a long time.

The last thing that seems to stop our young people from going toward a construction career is the old song words, “Mothers, don’t let your children grow up to be construction workers…” (I always thought that was supposed to be ‘cowboys”) but someone changed the words! I understand that today’s parents want their children to go to college and get that high tech career that requires college and beyond, not to mention fighting for an entrance level position and $100,000 to $200,000 in debt or more.  Learning a skill in the construction trades can lead to high paying position, sometimes quicker than climbing the corporate ladder, or maybe even owning your own company. With the growth in the Construction Industry, as it stands, opportunities in the field are growing, such as Job Estimating positions; Project Bidding, or Project Management.

So in answer to the question, where did all the American construction workers go? They are out there, but we all have to make a concerted effort to let the young people of America know that there is a place for them in this industry. A place that can offer them a good life, with a profitable future. Schools need to embrace the idea of bringing back trade classes for our high school students. Many young people cannot afford college; many have amazing hands-on-skills that are not being tapped for their potential. And for the record, having an education can only enhance the possibilities, as to how far an individual wants to grow in the Construction Industry. Thinkers and dreamers will always hold a secure position in creating our future; but since the beginning of time it was the ingenuity of the Builders and Construction Trades that raised villages to towns, and towns to cities. As the industry grows, it needs to cultivate a new crop of dedicated, educated, and hard working individuals to take on the challenge of this growing field.  As family construction businesses built the America of our history, there needs to be new ‘families’ who are ready to build and transform the cities of the future so we can all live out our dreams.  The Construction Industry needs to become a ‘generational industry’ in America once again.

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Old Fashioned Know How + Technology = Success

Is the technology of construction estimating the only road to take in the Future?

It seems as though more and more programs to estimate all facets of a construction are being created. These programs’ claim to fame is that they are the way of the future.

Be sure to remember that any program, no matter how detailed or comprehensive it is, it cannot be the only ‘answer’ unless the person behind the keyboard has the understanding and the ‘know how’ to operate the program properly. Making the estimating program work for you requires that the individual you choose to do your estimating has the ability to bring the program to life. Every project is different and unique, which simply means that any specific software must be tailored to dovetail with all types of projects or plans.  Boilerplate programs need to fit your projects. If a contractor performs any type specialty construction, the person behind the software must know how to manipulate the program in order to make an estimate accurate and complete

Did you ever try to create your own Website? Even if you have all the correct information and you have made the site look great, it may never be seen by your target population. This is an excellent example of why you need to get a website professional to work behind the scenes in order to make your website a success!

So, will technology be the ‘end all and be all” for construction estimating? I simply cannot be.

If you are looking for the right construction estimator for your company, outsource estimator or in-house,  looking toward the future of technology software is a good thing, but do not let go of some of the basic facts:

  • A construction estimator must know and understand the operation of the software in order to meet your specialty needs for your project.
  • An estimator must have extensive field experience in order to have a clear understanding of all facets of the job being done, to include the scheduling of the project, coordinating sub-contractors, material solicitation and distribution, pricing comparisons, etc.
  • Estimators must know the fundamentals of construction math and the art of reading detailed plans.
  • A construction estimator should be able to understand how specifications are written and how to interpret any project description.
  • Estimators need to have a clear grasp on mark-up values; what the market will bear, etc.
  • An estimator should be able to maintain excellent relationship skills in order to keep positive contacts with architects, contractors, sub-contractors, vendors, homeowners, whoever is necessary to make the job flow effortlessly to its completion.

Sure, a person can operate software, if taught exactly how, but; there are no seminars or tutorials that cover the human characteristics of a good construction estimator. There are no known manufactured replacements for solid, field construction experience, managerial experience, construction managers, or superintendent experience.

Estimating is and art. So, when you are looking for the right person, or construction estimating service that will meet your construction estimating needs, look beyond the software!

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Who Knew?

Blogs are usually about information geared toward the industry, how to help folks who may be struggling with new concepts, or ways of doing business. But when I think of all the ways to assist my clients or prospective clients, I can’t help but take a step back and look at the earlier history of my own construction story. It may even resemble a part of your own journey in this business.

Our family business started in the 1900’s, as you can probably tell by that really old fashioned black & white photo in my website! Back then, business was up front and personal, your word was your bond… and clients knew exactly what you were going to build and how you would build it. Your reputation depended upon how well you completed the job. Your business was on the line because ‘word of mouth’ spread quickly through your community and town.

I continued that construction business tradition in the mid- 1970’s. How good your business was, was still deeply rooted in your ‘word’ and reputation. As technology started taking hold of many aspects of running a prosperous business, with advertising, etc., word of mouth moved a lot faster. Now, well you know where I’m going with that…

As always changes in operations means investments in new technology to run a successful business. Any company that wants to stay alive in the future must change with the times. Doing so is not always as easy as it sounds. It Costs, and costs BIG!

From a long history and true understanding of construction, Chianelli Estimating was created in order to help the companies that found it was not that easy to make the transition to computer estimating systems and that the cost was purely out of reach.

Today outsource estimating services for the construction industry can save a smaller company from drowning in the day-to-day management and overwhelming tasks of being in the field and the office every day. Large companies struggle to keep the flow of bidding projects steady, even when they have an estimating department of their own. Having and outsource estimator on hand is like having a silent partner when you need them, and they are in your corner, helping you get the job done!

Looking back, who knew that this industry would evolve to what it is today and that technology, would play such a crucial part of its future. When I bought my first computer in1978, there were directions on how to plug it in!!

Who Knew?

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Communicate with your Clients!!

Construction can be overwhelming and very scary to your clients.It’s a good thing when they ask questions and it’s in the your best interest to devote the necessary time to listen. Yes, listen!!

We all have two ears and one mouth; there must be a reason for some higher authority using that design.

By just talking things through you’ll be surprised what avenues it may lead to.

Many times a better design or a new method will be the result. New materials are always hitting the industry so there may be an opportunity to explore them.

And guess what, you may even develop a friendship. What could be better?

Let’s face it, once a project begins, you are married to each other for a certain period. Keeping a harmonious relationship is imperative. The best way to succeed is always through communication and a good atmosphere.

Just imagine what a nightmare it could be if a month into the project things begin to go sideways with the relationship. Animosity takes over and will affect every portion the job. Working or dealing with an anger person or situation just exacerbates the problem.

Attendance becomes erratic. Subcontractors don’t want to work in a hostile environment. Who would? Workmanship begins to go south very quick and I bet we can guess what’s next. Yup, the money problems!!!

Unfortunately, if the project hits that stage you better brace yourself for some misery.

Ok enough with the bad vibe talk; I am beginning to itch.!!

How can you give yourself a good chance for a successful project?

Well first, during the estimating process, make sure you have taken a realistic approach to all the related costs for the project.

With today’s hustle and bustle, many contractors find it too mundane or can’t devote the required time to properly think out and develop a responsible estimate.

The good news, there is a viable solution to consider, Outsource Estimating!

Chianelli Estimating is a freelance estimating company who is ready to assist you.We are a state of the art estimating company who provides personalized service with old fashion values.

Getting off on the right foot, with a solid estimate, will help you communicate with your clients. It will give you the confidence in knowing you’ve taken a realistic approach to the actual project cost and you won’t have to rely on change orders; which many times is a catalyst for points of contention.

Remember:

A happy client = a happy project

A happy project = is a successful project!

Keep to line of commination open and you’ll be a Happy Contractor.