Construction businesses have one crucial task: estimating the amount. The construction companies tend to make some mistakes during the estimation process, which the companies should not make. The errors result in wrong estimated amounts. Following are the construction estimating mistakes that the construction companies make:
- Not conducting site visits: One of the most common mistakes that the construction companies make during the estimation process is not giving the construction site a visit. When one doesn’t visit the site, they miss the chance to look at the land, topography, traffic, and space for equipment and materials, which is vital in determining the estimated price. Not paying a visit will overlook the factors discussed, which can be costly for price estimation.
- Labor Pay: The different surveys done on construction companies says that estimating labor cost while price estimation is the hardest and one of the most common mistakes done while estimating prices. The experience, the salary the labor is taking, and the time they take to get the work done all play a significant role in determining the labor cost. One can accurately approximate the amount by taking information on the amount of labor, pay rate, and amount of work the labor is doing.
- Cost of the Materials: Since the project starts till it ends, the prices of the materials keep on fluctuating, so it’s pretty challenging to take out an accurate estimating services. One can avoid wrong material estimates by keeping in touch with the suppliers and the product manufacturers. The suppliers and the manufacturers can help keep you updated about the prices and might suggest other materials that can fit into your budget and will be helpful in your current project
- Undermining the risks: The construction companies ensure that they do the risk assessment before the end of the estimation process. After assessing the risk and knowing how much to estimate for contingencies, one should be able to give an estimate. Inability to do so during the price estimation can result in any risk or unknown factor appearing when the construction is underway, showing drastic results
- Inaccurate take-offs: Getting inaccurate or incomplete construction takeoffs can result in you losing the bid for a good project or winning for an unprofitable project. The groundwork is laid by takeoffs. It helps you know the amount of equipment you require, the labor you need, and the material and supplies you will need in your upcoming project. Inaccurate takeoffs can throw all that out of the window..
- Not reviewing sub-contractors estimates: As a construction contractor, there s a fat chance that you will be handing out some parts to the sub-contractors. Not reviewing sub-contractors’ estimate proposals can result in severe consequences if they are inaccurate. It would be best to ensure that the sub-contractor knows what you want from them and they have it accurately covered in their proposal.
- Not reviewing your own work: Making mistakes is a human trait. As an estimator, one can make quite a few mistakes during estimating. After you estimate the amount, it’s better to review your work and the estimate you have taken out. Some errors like inaccurate measurements and wrong unit calculations can cost you the entire estimation amount.
- Overlooking soft costs: Usually, the less-obvious costs are not managed and included. Soft costs, including the tax on the materials, dumpsters, and site prep, if overlooked, can result in leaving out thousands of dollars which can be very costly.
- Not reviewing the numbers: No matter how sure someone is about their estimate, there is always a chance that the calculations might be wrong. Before giving the final estimate, it’s better to re-check the measurement errors and the incorrect unit errors to avoid such mistakes.
- Last minute changes: Last-minute changes can very quickly affect your estimated price. The short time usually results in mistakes like leaving out your line items or formula errors. The construction companies are generally mindful of these mistakes as they can make your profitable projects turn to loss.
Since estimating is an essential task in the construction business, one should be very careful of the mistakes that they might make while calculating an approximate amount. The errors that the construction companies make result in the company’s loss and the losing of the bid. We mentioned some common mistakes you must be careful of and be on the lookout for those mistakes and errors. Like this article, we will bring you more informative articles to give you tips and ideas to help your construction business grow, so stay tuned.