Construction Estimating

Are you one of the thousands of contractors suffering the “construction estimating blues”? Are you living from job to job and, too frequently, paying bills from the last job with money from the current job? If you’re like many contractors, maybe even a majority of contractors, your construction estimating is letting you down because you’re “guesstimating”, your not estimating! What do I mean by that?

Estimating and Job Cost – the Secret to Making Money

In order to be confident in estimating, you need to measure your results. That’s the only way to be sure that your estimating correctly is to measure your results. In the 10 foot wall example above, let’s say it only took 8 hours to build the wall. You probably would modify your time for future estimates from 1 hour per linear foot to 8 tenths of an hour per linear foot.

That’s how you make money consistently from job to job to job. Do everything in measurable units, measure the results and adjust your estimating for future projects.

Construction Guesstimating Vs Construction Estimating

Let’s say you go out to a job and there’s a 10 foot wall that needs to be framed and drywalled. You look at the wall and figure that will take about a day to do. You go out to another job and there’s a 15 foot wall that needs to be framed and drywalled. You look at the wall and figure that it will take about a day to finish it. Guess what, you’re guesstimating!

If you really want to make money consistently on each and every one of your jobs you need to estimate your construction jobs, not guesstimate them. Accurate construction estimating is crucial to your long term financial health.

Let me tell you how construction estimating should be done if you want to make money. Everything you do needs to be measurable for labor, materials and equipment. How do you do that?

Using our wall as an example, we need to find out how long (and how much material) it takes for 1 foot of the wall. Let’s say you know from experience it takes an hour per linear foot to frame and drywall a 2X4 interior wall. So, for the 10 foot wall, you need to bid 10 hours, for the 15 foot wall you need to bid 15 hours.  When you’re guesstimating, which way too many contractors do, you’re frequently either leaving money on the table or over bidding and not getting the job. Most of the time money is left on the table because you’re eager to get the job.

Construction estimating is not a perfect science, but it beats the heck out of guesstimating. You may be asking yourself “how do I really know that I’m using the right standards for my estimating?” How do I know for sure that it takes me an hour per linear foot of wall?

 Learn more about Construction Estimating.

Construction Estimating Information: Construction Estimating Techniques

Estimating is calculating the quantities of various items to be used  and the expenses that are to be incurred in the work to be done. Estimated cost is the total probable expenses that are to be incurred in the work. It is a close approximation of the actual cost. The conformity of the estimated cost to the actual cost depends on the estimating accuracy and the correct visualization of what is to be done. Obviously, correct estimating is essential. Under-estimating can lead to customers' unpleasant shock when the work is completed and the bill is presented. On the other hand, over-estimating may cause the loss of the estimator's client. Estimating is the most significant among the practical aspects of construction management. One aspiring to a career in the profession must pay close attention to learning the estimating process. It is a relatively simple subject to understand, but without close attention to its application, one is unable to effectively use the technique for practical work procedures and methods.

PURPOSE OF ESTIMATING
To provide a realistically accurate idea of the cost.

Necessary estimation gives the owner an accurate idea of the cost to assist him in making a decision as tp whether the work can be carried out as proposed or needs to abandoned or curtailed, depending on the funds available and direct and indirect prospective benefits. Proper sanction for allocating the required amount has to be obtained for government works. In case works are let out on a lump sum basis, the estimator must be in a position to know the exact expenditure amount he is going to charge them.

1. Estimating Materials
From the work estimation it is possible to determine the required materials and quantity for the work to make the arrangements to procure. Building a deck is important as a science and it is necessary for estimating the amount of material. You may not have the exact quantities needed, but at least you get close to the right quantities. It is better to first check the return policy of your supplier, so that you can surely bring back any of the unused salable items for a full refund.

2. Labor Estimating
In doing the estimate, you must know the number and different categories of what kind of workers who will have to be employed, so that the work can be completed in your specified time. In plumbing work estimation for example, the expense of the labor may be variable due to two causes. First, not all workmen are equally good in planning and designing what is needed to complete the job. On the other hand, slowest workmen’s output must not be taken as a standard. Too much labor will be allowed for if it is, and a very high bid may not secure the contract. Figure out what average output of men is and use that as a basis for calculating the labor.

3. Estimating Plan
Find out the amount and what kind of materials needed to complete the work.

4. Time Estimating
Estimate of a work and the past experience may help one to closely estimate the required length of time to complete the item of work.

Note: The importance of knowing the probable cost does not need emphasis. Estimating materials, estimating labor, estimating plan, and estimating time is effective in execution and planning of any work.

Wesley Tucker had a noteworthy line of attack about Construction Cost Estimating Technique. Make sense of it here.