Construction estimating is basically the art of estimating the total cost of constructing a physical structure. This section is very important, and one of the key components in the construction process to ensure that construction proceeds as planned. Estimators must be as precise as possible since any estimation made is going to have a direct and/or indirect impact on the budget of the contractor. If costs exceed budgeted amounts, the contractor may have to re-schedule or request additional funds from the government. The delays caused by inaccurate costs can ultimately cost the contractor money and damage already accumulated projects. Estimating costs correctly prevents costly mistakes from taking place.

Why Every Contractor Needs to Understand It

In order to avoid errors during the construction estimating process, contractors must have a checklist to go over before beginning any estimate. This checklist will list all items needing to be accounted for, as well as any changes that will need to be made. In addition, every single item on the list must be estimated within the budget provided by the contractor. In many cases, only the most significant items need to be estimated because a contractor may decide to revise some of their estimates in order to meet the time constraints that come with an open bid. Regardless of whether or not they change estimates during the estimate phase, these revisions will still need to be itemized and included in the final bid estimate provided to the government, which is what typically happens.

While it is true that many contractors do not need to estimate in order to submit bids, in the modern construction market proper construction estimating is essential. Without proper and reliable construction cost estimates, cost overruns could easily occur which would negatively impact a company’s financial stability. Fortunately, there are a number of good construction estimating services available both online and offline which can provide accurate budgeting and costing estimates.

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