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Outsource Estimating

January 30, 2020 by chianelli

Construction Estimating

Construction estimating is an important task that should not be overlooked or done in a careless manner.

Failing to prepare a reliable construction estimate could make the difference between a successful project and a complete fiasco aided by a calamity of errors.

Preparing an estimate does not come without a cost. A good estimate requires time to develop which directly effects the Owner’s, Contractor’s, Architect’s and Engineer’s cost of doing business.

Many times those costs are not recovered, however; they could make the difference in keeping the Builder or Owner solvent or ending up with a failed project or worse yet bankruptcy.

Construction estimates can be developed in house or there is always the option to engage an Outsource or Freelance estimating company.

Recently Contractors and Owners have found that Outsource Estimating is becoming a practical way to cut overhead. They do not have the burden of carrying costs like workmen’s compensation, general liability insurance, unemployment related costs, vacations or sick days, etc.

Builders and owners both are concerned about the financial impact or cost overruns and failing to complete a project.

Cost estimates will help outline the project’s scope and feasibility. Both contractors  and owners use them when deciding whether to bid or build a project.

Developing a well-planned estimate, including soliciting multiple bid proposals for materials and subcontractor work, will help ensure the estimates accuracy.

It also aids in gauging bid proposals received from material vendors or subcontractors. It is best to have an idea of what an item will cost when proposals are received to guard against over paying or in determining if the proposal cost is too low.

Choosing the lowest bid is not always the best practice. Many times contracts are awarded to the lowest bidder, only to find that the contractor cannot perform the work or sustain the additional costs not allowed for in the bid. Should a contractor fail, it can open up an onslaught of problems, which could lead to a domino effect putting the project in peril; lawsuits, liens, lost time and progress to name just a few.

Having another company come in to take over the previous contractors, due to their failure, can lead to premium costs charged knowing the owner is distressed and can take advantage of the situation. Suddenly cheap became expensive; notwithstanding your anticipated project cost just went out the window.

While estimating project costs are imperative to a project’s success, even a finely honed estimate cannot provide absolute precision. An accomplished estimator will account for as many factors, however there are occasions where unexpected costs can happen once the project begins; weather, shortage of labor or materials, production rates are a few examples.

Bottom-line investing in a well-developed construction estimate whether using an in house estimator, an Outsource or Freelance Estimating companies will pay many dividends.

Filed Under: Building an Estimate, Construction Industry, Cost Estimating, Freelance Estimating, Outsource Estimating

June 10, 2019 by chianelli

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.

 

Filed Under: Building an Estimate, Construction Industry, Cost Estimating, Estimate Types, Freelance Estimating, Outsource Estimating

October 13, 2017 by chianelli

Tired of Doing It All?

Feel like you’re drowning in stress?

No time for Estimating?

Are you missing opportunities because you can’t get to them?

Beginning to feel helpless?

STOP!!

At times we’re all guilty of taking on too much.

Step back, take a breath, smell the air, admire the clouds.

Spend time with your family. Do something special for yourself.

This will help you refocus and give you an opportunity to clear the fog.

No one is an island.

Managing a business is difficult at best, however trying to be the boss, a tradesmen, salesman, accountant, admin, project manager and estimator can be overwhelming; as well as unproductive.

Wearing too many hats, in the long run, will limit your growth.

This is where Chianelli Estimating can be an integral tool for Freelance Estimating solutions to help alleviate one aspect of the many demands placed upon you.

Let’s face it, estimating and quantity take-off consumes large blocks of precious time which requires complete concentration.

Chianelli Estimating is dedicated to assisting our clients with the utmost professionalism, using industry leading software and digital takeoff tools such as: Sage Estimating, eTake-off, eBridge, Planswift and RS Means for worksheet development.

Many clients want us to do the heavy lifting and provide them with quantity take-off only and they input their own pricing. This drastically reduces the amount of time they would have spent quantifying all the parts and pieces but still allows them the comfort of using their normal company price structure; while others desire a more comprehensive package. Either way our mission is to be there when you need us for a bit of help.

Consider using our outsource estimating assistance.

It just may be the answer to melt that stress away.

Remember no one says “I wish I worked more and spent less time with my family” as their last words.

Ahhh, doesn’t that feel better already?

Time to Exhale!!!

Filed Under: Cost Estimating, Formula for Success, Freelance Estimating, Outsource Construction Estimating, Outsource Estimating

December 12, 2011 by chianelli

Quantity Take-offs by Construction Estimating Services can benefit Builders & General Contractors

Is there a last minute bid opportunity that you need of assistance with?

Do you have too many bids proposals to handle and not enough staff when a last minute “emergency” bid is due

Send your your blue prints to an experienced Construction Estimating Service

They can provide a quantity take-off or a complete estimate or for those emergency bid occasions.

Their quantity take-offs can be used to plug into your worksheets saving you valuable time.

Many Builders & General Contractors have benefited with reduced costs by outsourcing, alleviating the need of hiring a full time Estimator.

Using the construction estimator’s take-off spreadsheets can also be a valuable guideline for checking quantities as a comparative analysis to ensure no missed items occur.

Consideration is given to every division in order to provide you the details necessary for double checking self-performance work and to compare to your subcontractors proposals.

Experienced Estimating Companies use the latest technology in the estimating process which provides more accuracy and inefficiency with the estimate take-off. 

Construction Estimating Companies will be able to provide seasoned professionals with vast experience; which places confidence in the quantity take-offs needed for builders and general contractors.

The use of Freelance Estimators can aid in both temporary situations or for permanent use for your construction estimating.

Quantity takeoff and estimating services can help builders & general contractors with:

  • Pricing, project analysis and negotiations
  • Preparation & submission of bid proposals.
  • Procurement of Sub-Contractors
  • Processing and formalizing Sub-Contract documents 
  • Double checking sub-contractors estimates or change orders applications 
  • Evaluation of Sub-Contract work in progress 
  • Account substantiation of Schedule of Values and monthly Application for Payment
  • Variations in project costs
  • Design-Build guideline costs 
  • Value Engineering
  • Preparation Costs for Final Close-Out

Builders & General Contractors should look for well rounded estimating portfolios that includes experience in all categories of the construction industry such as: 

  • Commercial – New
  • Commercial – Renovations & Fit-outs
  • Historical Restorations
  • Residential – New – Single, Multi-Family & Complexes
  • Residential – Renovations & Remodeling – Single, Multi-Family & Complexes
  • Municipal
  • Governmental
  • Industrial
Builders & General Contractors can benefit by using a Construction Estimating Service and should consider using one to assist their company.


 

 

Filed Under: Construction Industry, Cost Estimating, Freelance Estimating, Outsource Estimating, Quantity Take-off

December 5, 2011 by chianelli

Building a Construction Estimate

Residential Estimating and Commercial Estimating projects require a similar approach for the construction estimate.

 

Building a precise Construction Estimate has many components:

  • Accurate quantity take-offs
  • Proper crew sizing
  • Applicable labor rates
  • Production rates
  • Material costs
  • Subcontractor quotes
  • Equipment costs
  • Logistics and Environmental considerations
  • Eliminating emotional ties for a particular
  • Drawing from past experience
  • Using common sense and reality checks

These are all critical ingredients to estimating your construction projects.

 

It’s a challenge for most small and medium sized contractors to bid regularly job after job. 

Sometimes there’s just not enough time to get everything done. All too often, you’re overwhelmed with the amount of work you have to do, whether or not its job related.

Why not consider using an experienced outsource estimating company as a solution?

  • The estimating is done by professionals who are strictly devoted to construction estimating and only construction estimating.
  • All component aspects are analyzed and fine-tuned individually for each project.  
  • You will have additional time to devote to running and growing your business; while your estimates and bid proposals continue on a regular basis.
  • When the estimate is near completion, it’s the perfect time to review all the estimate spreadsheets and related take-off data. The final adjustments can then be made by you as you feel necessary.

The best part is; you had the freedom to devote more time to your company while the estimate work was being done concurrently.

Letting professional estimators assist you with the construction estimating can be the answer to consistent bidding.

Consider outsource estimating.

Filed Under: Construction Industry, Cost Estimating, Freelance Estimating, Outsource Estimating, Responsible Estimates

November 28, 2011 by chianelli

Estimate Outsourcing; Year End Analysis = Overhead Savings

So another year is just about in the books. 

Construction estimating requires constant adjustment to stay competitive; to land your share of projects.

How accurate were your project conclusions?

It’s time to review your approach and measure those results; to see what’s working, what’s not and how to adjust.

Are you losing your market place? Are you turning a profit? How do you stack up against the competition and what are they doing better than you? 

In a perfect world every project estimate or sale quota was right on target and no adjustments need to be made……. oh yeah and then you wake up.

Taking a hard look at project estimates and their rate of success is imperative for course adjustment to your business model.

In business, as in life, you can be sure of one thing…… everything is temporary.

Everything eventually changes; good, bad, rich or poor. It’s natures law.

Ironically you’ll learn more from your failures. It’s easier to identify what didn’t work than why something was successful.

Success has a way of breeding complacency and failure promotes urgency. Staying successful is a more difficult status to maintain. Those companies who have achieved some success need to continue searching for leaner and better means and methods to sustain those results.

The most profitable and efficient construction companies have learned to get better results doing more with less. Outsourcing has greatly aided their efficiency effort. 

Why sustain a staff with top heavy overhead when using an outsource estimating company can cut annual expenses?

Closely analyzing where expense savings can be realized will go far in your endeavors toward success and outsource estimating is a great aid to that end.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Filed Under: Cost Estimating, Estimating is Critical to Your Success, Estimating Overhead, Formula for Success, Freelance Estimating, Outsource Estimating

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Office: (845) 704-1641 | chianelliestimating@gmail.com

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