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You are here: Home / Building an Estimate / Responsible Construction Estimating loses to Irresponsible Construction Estimating. Who is the Real Loser?

November 20, 2011 by Chianelli Estimating

Responsible Construction Estimating loses to Irresponsible Construction Estimating. Who is the Real Loser?

The entire construction industry has undergone a change.  Estimating for construction projects has become more difficult. Fewer project start-ups has more contractors bidding on less opportunities.

Today’s world is a much different place than twenty years ago.

Unfortunately, through a growing economy and a false sense of security, it took only a few greedy wall street executives and the relaxed requirements of lending institutions to cripple our nation, eventually devastating millions.

America, once the land of opportunity, had become too fat, happy and comfortable. We had developed Popeye’s Wimpy negotiation style, ” I’ll gladly pay you Tuesday for a hamburger today”.

That philosophy has paralyzed the economy and has promoted more poor judgement among contractors, estimating projects lower than cost; just to get work. This will eventually cause more problems and will be a matter of time before more building projects fail.

It’s a vicious cycle and somewhat ironic that the cause of the failure is once again the cause of more failure.

Less lending cripples growth and has a devastating affect on construction. Fewer projects attract more contractors to make illogical business decisions. As the saying goes “desperate people lead to desperate actions”.

In order for contractors to survive regrettably their illogical actions affect the logical approach of sound construction bidding. Contractors with sound business practices now are penalized and become the “underlings ” to the irresponsible bidding contractors.

This insanity must stop.

Eventually the reckless estimating practices of those contractors will be weeded out.

My advice to contractors is don’t change your approach to estimating. It will prove to be wise in the long run.

Let’s not let poor judgments of the past lead to poor judgments today.

Our future and yours depends upon it.

 

Filed Under: Building an Estimate, Cost Estimating, Estimating is Critical to Your Success, Freelance Estimating, Outsource Estimating

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