Home construction estimates are essential to identify aspects of construction. It assists in planning and ensures there are no excess or shortages. In this post, the article provides a guide on what you need to know about home construction estimates. These include users of these estimates and how to utilize the estimates. Materials Market provides the appropriate materials that make it easy to determine home construction estimates.
What is a Construction Estimate?
It is a basic level of forecasting the expense of building a physical structure. It is intended to be as accurate as possible.
How are these estimates used?
To determine the costs of long-term maintenance and upkeep of the building.
- To account for all expenses to prevent scope creep
- To understand the feasibility of the building project
- To determine construction limitations
- To determine the ongoing costs of the project
Who handles construction estimates?
It could vary between:
- Independent construction estimators
- In-house estimators
- Use cost estimation software
- The depth of cost estimates
Different estimates are completed at different points of the construction process. The initial estimate can cover a partial percentage of the project costs.
The accuracy of the cost estimates depends on previous building projects similar to the current one. The contractor’s role also determines the estimate.
Number of estimates used in a project
1. Order of magnitude estimate – the project initiation estimate
2. Schematic design estimate – intermediate phase, has 15 to 20% margin of error
3. Design development estimate – the preliminary estimate
4. Construction document estimate – based on the construction specifications and drawings. It determines unit costs
5. Bid estimate – provided to the client based on construction documentation.
How to simplify the construction estimate process
- Get a well-informed estimator
- Find help through construction estimating services
Elements of a construction cost estimate
- Quantity take-off – measures materials and labor needed to complete a project
- Labor Hour – measures output of one person working per hour
- Labor Rate – amount per hour you pay the craftsmen
- Material Prices
- Equipment costs
- Subcontractor quotes
- Indirect costs – expenses such as legal fees, transport costs, and administrative costs
- Contingencies – unforeseeable circumstances
- Escalation – vital for long-term projects
- Bonds – a guarantee of delivery
- Capital costs
- Operations and maintenance costs
- Variances – wage increases, occurrences like heavy rain, legal issues.
Different Estimating methods
- By hand
- Using digital takeoff software
- Getting hard bids
- Hiring a qualified estimating firm
Final thoughts on what you need to know about home construction estimates
Estimates are the key to building a perfect project. These estimates determine the project’s progress and it can either benefit or destroy you.
There is a lot to learn about construction estimating to improve your rates. The article acts as a guide to illustrate what one needs to know about home construction estimates.