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What Is Construction Estimating?

 

Construction estimating is the process of forecasting the cost of building a physical structure. It can also be used to determine a project’s feasibility, scope, and budget.  Construction estimating can prevent the contractor from losing profit, whilst also ensuring that the client is not overpaying.

Why Is Construction Estimating Important?

Although construction estimates are never going to be 100% accurate, they still play an important role in the construction planning process.

Initially, project managers can use the estimate to determine the feasibility and profitability of a project. This can help them decide whether it’s worth taking on the project or not.

Construction estimating can also help give a general idea of budget, allowing the procurement team to decide things such as what materials to purchase.

In some cases, construction estimating may even have an impact on the projects design, based on projected costs.

Key Components of Construction Estimating

When estimating, it is important to consider all the costs involved with successfully completing a project. This will allow for the estimate to be as accurate as possible and can help ensure your projects stay profitable. Typically, there are two types of costs to consider, direct and indirect.

Direct Costs:

• Materials
• Labour
• Equipment
• Fuel/power

Indirect Costs:

• Security
• Utilities
• Administration
• Temporary structures
• Legal fees

Construction Estimating Software

Construction estimating plays a vital part in any project, therefore it is beneficial to be as accurate as possible. Using estimating software, such as esti-mate, can help you improve your construction estimating accuracy. Our software considers both direct and indirect costs and uses the data you provide to produce quality estimates much more quickly than if you were to do it manually.

If you would like to see how esti-mate can help you produce quick, accurate construction estimates, download your free 20-day trial here.