Obtaining an accurate construction estimate will go a long way toward ensuring your project's success. While it's impossible to be exact to the penny all of the time, there are things you can do to improve the accuracy of your financial forecast.
1. Know Your Customer’s Expectations
The first step is
to ensure that you and the customer are on the same page. That means getting
their approval, but also making sure they understand the plans and how the
construction will look when it's finished. You don't want any unrealistic
expectations or misunderstandings to result in unexpected costs at the end of
the project.
2.
Use the Unit Cost Method
You can conduct
your construction estimate in a variety of ways. Every aspect of the job,
including materials, labour, and permits, is listed on a stick estimate. It
takes a lot of time. However, there are other techniques, such as the unit cost
method, that take less time and are just as accurate. That makes a list of
everything you'll need for the job, assigns a unit price to each item, and adds
the totals.
3.
Get Expert Advice
Another option is
to seek out people who are more knowledgeable about certain aspects of the
construction than you are. There are probably aspects of the construction on
which you are an expert and can estimate costs with great accuracy, but other
aspects of the construction may be beyond your knowledge. Don't be afraid to
seek assistance.
4.
Don’t Underestimate Labour Costs
Estimates can get off track when it comes to labour costs.
Hourly rates are only part of the picture when it comes to labour costs. You
must consider your team as more than just a collection of numbers and
statistics. While the cost per hour may be fixed, the amount of work that an
experienced team member can do versus someone new to the job must also be
considered. There's also specialised labour, craftsmen, and subcontractors to
consider. It becomes more complicated. Make certain that everything is in
order.
5.
Consult With Suppliers
Relationships are
also important. You want to be able to communicate effectively with your
suppliers. Getting in touch with your suppliers as you begin to plan your
budget can provide you with useful information, such as whether material prices
will likely rise. Consider your suppliers to be the experts on the construction
site; only they can help you control the cost of your resources.
Need more insights
on the same? Enrol in PMP certification classes today!
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