How do you standardize cost estimates across projects and locations?

1 Use a common cost database

One of the first steps to standardize cost estimates is to use a common cost database that contains reliable and updated data on labor, materials, equipment, and overhead costs for various construction activities and regions. A common cost database can help you avoid using outdated or inaccurate data, adjust for regional variations, and benchmark your estimates against industry standards. You can use a commercial cost database, such as RSMeans or Craftsman, or create your own custom database based on historical data, market research, and vendor quotes.

2 Apply a consistent methodology

Another key step to standardize cost estimates is to apply a consistent methodology for calculating and presenting your estimates. A consistent methodology can help you avoid errors, omissions, and inconsistencies in your estimates, and make them easier to compare and communicate. You should follow a standard format, such as the Uniformat or MasterFormat, for organizing and classifying your cost items. You should also use a standard level of detail, such as conceptual, preliminary, or detailed, for estimating your costs based on the project phase and scope. Finally, you should use a standard contingency, markup, and risk analysis for adjusting your estimates based on the project complexity and uncertainty.

3 Use a common software tool

A third step to standardize cost estimates is to use a common software tool that can help you create, manage, and share your estimates. A common software tool can help you automate and streamline your estimation process, reduce manual work and errors, and improve collaboration and transparency. You can use a dedicated cost estimating software, such as Sage Estimating or ProEst, or a general project management software, such as Microsoft Project or Smartsheet, that has cost estimating features. You should ensure that the software tool is compatible with your common cost database and methodology, and that it allows you to export and import your estimates in a standard format, such as Excel or PDF.

4 Review and update your estimates regularly

A final step to standardize cost estimates is to review and update your estimates regularly to ensure that they reflect the current project status, scope, and conditions. You should perform regular reviews and audits of your estimates to check for accuracy, completeness, and validity. You should also update your estimates whenever there are changes in the project design, specifications, schedule, or resources. You should document and communicate any changes in your estimates to the relevant stakeholders, and keep track of the reasons and impacts of the changes.

Standardizing cost estimates across projects and locations can help you improve your cost management skills, enhance your project performance, and increase your competitive advantage. By following these tips and best practices, you can create more accurate, consistent, and comparable cost estimates for your construction projects.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?