The construction industry is run on estimations. Be it cost estimation or project estimation, every construction owner has to have a rough idea of everything. We understand that preparing the estimation thoroughly and accurately can be challenging. This is because of your busy schedule and you cannot take the risk of estimating projects in a rush and end up making mistakes.
Every mistake will take a toll on your profits and the overall growth of your business. Before finding the solution to your problem, dig into your most common mistakes:
1. Vague Takeoffs
As a contractor, if you take vague takeoffs without any idea of the project, you’ll end up losing your client. This is one aspect of the construction process that should be accurate. In this way, you can be precise with quantities needed for your supplies and materials.
Moreover, you need to determine your equipment and labor needs. In case, you miss on any item or make inaccurate measurements during takeoff, you may end up overestimating the construction project and lose the bid.
This is where using smart project management technology can help you. Once you feed all the data into the system, you’ll receive automated estimations on every aspect of the project.
2. Complex Labor Costs
At times, construction professionals face difficulties getting accurate estimates with labor costs because of its complexity. As a contractor, you should be aware of the fact that labor costs ranks as one of the most expensive project costs.
Moreover, you will come across numerous variables during the labor cost estimations like the number of available workers you can hire for a project, worker’s experience level, overall productivity, and pay rate.
Always keep in mind, when you pay an experienced worker with the best salary, you can get more work done and stay productive throughout the project seamlessly. Focus on how many working hours will it actually take to perform a job and use that information on estimating labor costs.
3. Surprise visits on the jobsite
Whether you visit the site beforehand or not, expect some surprises during the process. It can be insect or water insect damage or structural issues, which are quite apparent until you’ve begun the task.
And unfortunately, there’s no alternative to entirely avoid these unknown surprises. Hence, your construction bid should consist of both the scope of work as well as a practical pricing structure for the unwelcome portions.
Having an idea for specific conditions rather than having an open-ended time-and-materials contract is better to stay ahead.
4. A lot of guesswork and stake your bids
If you’re one of those who do a lot of guesswork, you’re literally staking bids. You’ll end up doing inaccurate cost estimates for your construction project.
With zero knowledge guesses and risking bids take your project in a hostile state! So always remember, accurate estimates can be secured when job costs are tracked appropriately. And as you know materials, labor, and equipment are the most crucial job cost elements to determine the current data available.
5. Take decisions without any knowledge and planning
When you’re working on a construction project already, follow up each phase of the plan to make sure that nothing goes wrong. However, some professionals feel the need to devise guesses without gaining proper information, leading to more challenges for the construction project.
This is why you need to prevent risking bids by forgetting about all the guesses in your estimates. Also, make sure to track your job costs on every project if you want accurate estimates and bids.
Now that you know the most common estimation mistakes in construction, you need to take into consideration all of them if you don’t want your construction project to be a mess. Once you avoid the estimation mistakes, you can run your project without any hassle.
Ed Williams is the Senior Team Lead at ProjectPro, an integrated construction accounting software. He holds a massive industry experience and is a Microsoft Dynamics expert who is focused on successful implementations. He is a visionary leader and always aim to deliver the best to the construction and project-oriented industries.