Tips for Creating Accurate and Efficient Construction Estimates

Accurate project estimates guarantees project success and you never run out of budget. It is the most important task that has to be performed on priority before starting any construction project. If you have recently started working as an estimator and you face immense challenge in preparing correct drywall estimates, this guide can help you. Please check out the tips for creating accurate and efficient construction estimates.

Tip #1- Use all-in-one construction accounting software

Executing this task has become lot simpler now- all thanks to the advanced computer aided softwares which calculate estimates quickly. They ensure that the process of preparing estimates touches every aspect of the project.  Multiple all-in-one construction accounting softwares are available. They claim to provide you with an integrated database, proper work analysis structure and professional report menu.

Tip #2- Maintain the construction database smartly

Maintaining the construction database intelligently lets you create accurate cost estimates. Update the cost estimating catalog every single day because prices fluctuate a lot and it is mandatory to revise the cost of materials, supplies and labor. Absence of up-to-date database ultimately produces incorrect estimates. On the other hand, maintaining it smartly will play a pivotal role in completing the project on time and within budget.

Tip #3- Prepare a checklist of every cost item

Preparing a checklist is compulsory for the sake of creating efficient cost estimates. Include every cost item in that checklist and then calculate the total budget. Accounting softwares have in-built and ready-made templates; you can use them and hassle-freely track the project details.

Tip #4- Keep the material costs updated

Materials cost is the crucial cost in the estimating report. It should be updated to avoid undesirable surprises in between the project completion stage. Professional estimators stay ahead while computing this cost because a little mistake in this section can cost you a lot. The construction industry remains greatly influenced by fluctuations with respect to its material prices. Their prices vary frequently, so update them whenever they get revised.

Tip #5- Predict the unplanned costs (Do risk assessment)

 It is believed that predicting the unplanned costs or performing a thorough risk-assessment gives you accurate cost estimates. Never underestimate the importance of analyzing risks. You can look back at the previous projects and get an idea about the unplanned costs and what could be the potential risks. Following this great tip will make it easy for you to be mentally ready financially if something does not go according to the plan and budget.

Tip #6- Always include operative costs

 Apart from including labor and materials costs, please do not forget adding the operative costs too. That includes the cost of engineering or architecture, legal services, operation and administrative expended and land permit fees.

Tip #7- Pre-determine which equipment your project needs

 Some estimators make the mistake of ordering too much or too less equipment. This brings a lot of mess and the cost estimates gives the most inaccurate picture. You must determine in advance which equipment your project exactly need. Moreover, having the right equipment guarantees that the project completes on time but ordering unwanted equipment add up the cost which burden up the total budget too.

Tip #8- Prioritize evaluating higher cost with more attention

 You must remain very responsive when evaluating highest costs. Pay more attention and become more thoughtful when estimating the cost of materials, labor and other supplies. Furthermore, these factors make up 50% to 70% of the total project budget, so handle them with accuracy and immense focus.

Tip #9- Take feedback from legal and finance staff

 It is recommended to take feedback from legal and finance staff because their viewpoint can help you genuinely in preparing accurate cost estimates. They can support you in areas like tax and banking regulations. Besides, estimator does not have sufficient knowledge about these legalities, local legislations and codes and seeking assistance provided by the legal staff is recommended.

Tip #10- Know the project scope

 Lastly, knowing the project scope will give you an exact idea how to create cost estimates with precision and no error. Get a clear understanding of how each factor will impact the cost. You never know when there is a need to add new room to the project, so factor in that cost too.

Bonus tip for you: Bring everything in writing. Never prepare cost estimates like a rough draft or orally. Create a proper pattern and add every cost item. Stay connected with us and get on-time updates about the construction industry.


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