Managing a construction project can be challenging and complicated, especially the estimation part. The entire process of estimation of the cost of construction projects is complex and contains several variable factors. Construction professionals have to start with a careful review of the project documents to identify the exact amount of work required in a project. Most commercial and residential builders rely on advanced building estimation and costing software to understand the work required and the prices of materials and labour. Such construction cost estimating software can provide an accurate estimation of the cost of a construction project, thus allowing you to improve efficiency and focus on other building work. However, the estimated accuracy widely depends on correct material takeoffs and steady pricing of project components.
Here are four simple steps to calculate the estimated construction project costs.
Step 1: Use Estimating Software
As mentioned earlier, managing construction projects can be challenging as the process involves complex factors. Right from the start to finish, construction professionals have to carry out countless tasks and ensure smooth functioning. Most construction professionals believe project estimation is time-consuming – which is true – and complicated. Any time saved on estimation means you can focus on other various tasks.
Choosing an advanced construction estimating software can help streamline the estimation process, limit chances of error, and offer you an accurate cost. Using estimating software, you can quickly calculate material takeoffs and labour costs, making the entire process as simple and seamless as possible. Additionally, the cost database available in the software can be updated super quickly to reflect new pricing, making the pricing work easy.
Step 2: Complete Material Takeoffs
Reviewing project documents is essential to understand the overall scope of the project and sections requiring estimation. Once done, you can start with a material takeoff – a process of creating a list of materials and equipment needed for project completion. The quantity required will depend on the amount of work needed as per the documents. You can consider taking the measurements either manually using a scale ruler on printed plans or digitally using robust software. To ensure maximum accuracy on your material takeoffs always use a checklist and automate the entire process.
Step 3: Estimated Schedule
The estimated schedule of the project is based on the scope of work. Considering the estimated schedule allows you to determine the actual time and labour required to complete the project and calculate the cost estimate. Make sure you include contractors, sub-contractors, supervision, and administration time in your estimated schedule. Track the trades required to complete the project.
Step 4: Pricing The Work
After creating a list of materials and determining the labour required, it’s time for estimation. Cost estimation involved material cost, current labour cost, previous project, and construction company’s experience. Follow the next steps:
- First, update the material pricing as per the current market rate. Also, ensure the material required should be available on or before the project time frame.
- The labour rates should cover wages and burden (employer-paid taxes, retirement funds, vacation time, sick time, etc.)
- Include an allowance for overhead costs (vehicles, insurance, mobile phones, computers, office administration expenses, etc.)
- Once done, simply add a percentage for profit. Cross-check all the details i.e. material pricing, labour cost, and profit. Now you can easily determine the final estimate.
Choose The Best Construction Estimating Software in Australia For Better Project Management
From web leads in CRM, estimating with CADImage to scheduling and accounts, BEAMS allows you to include every stage of the construction process in one package.
You can also maintain all your on-site activities using its mobile functionality. Choose our building cost estimation software for quick, efficient, and reliable construction project estimates.