The need for estimation and costing of construction can’t be understated. Even if the vision for a construction project is clear, the financial costs of completing it can be difficult to predict. Construction managers and developers can minimize the risk of failure by getting a cost estimate before committing to a hard bid for a construction project.
What is the Importance of Cost Estimation in Construction Projects?
Every construction project needs to be evaluated from start to finish, which requires a series of cost estimates. A cost estimate is a ballpark number based on the estimated total expenses of the project.
Cost estimators are a crucial part of the construction process because an accurate cost estimate can prevent a financial tragedy, like overbidding on a construction project and wasting resources or losing the project entirely.
Please note:
The lowest bid isn’t always the best bid. It won’t guarantee that you’ll win the construction project and underbidding can be costly too! Make sure you understand bid delivery distinctions like the difference between design-bid build and design-build delivery methods before sending over your proposal so you don’t overbid or underbid for a project.
Without a construction estimator, it is easy to get blindsided by these expense factors:
- Labor costs
- Material costs
- Market value fluctuations
- Projected time spent on the project
- Machinery needed
- Building codes
- Terrain
- Architectural and engineering fees
- Expenses after completion, including insurance, security and other fees
- And many more
Construction cost estimators also help legitimize construction companies by delivering sound cost estimates to them. The construction company can then present these estimates to their potential clients, who will select the best bid from the company that’s most suited to their construction needs.
What is the Need for Estimation and Costing Overall?
Market fluctuations, and even volatility, ensure the need for cost estimation in construction remains relatively stable: very high. No two construction projects can be met using the exact same methods, equipment and materials.
Cost estimating professionals will always be needed because there is never complete certainty where construction projects are concerned. Cost estimators use reliable data and estimating software that can drastically improve your construction project’s chances of success.