What are the best strategies for consistent construction estimating?

1. Detailed Project Scope Analysis: Conduct a thorough examination of project scope to ensure a clear understanding of deliverables, milestones, and client expectations. 2. Comprehensive Takeoffs and Quantities: Utilize digital tools for precise takeoffs and quantity surveys, reducing errors in material and labor calculations. 3. Historical Data Utilization: Analyze historical project data to identify patterns, cost trends, and benchmarks, providing a foundation for accurate estimates. 4. Continuous Market Research: Stay updated on industry trends and costs through continuous market research, considering economic factors influencing construction expenses.

The appropriate projection for cost should be derived from the correct index for escalation calculation. Alongside adhering to the AACE recommendation for contingency calculation, this can be achieved by utilizing either the risk register or expert judgment.

Many projects are underestimated when it comes to labor, where the labor force is coming from and where the job is located. I think it is important to do research on the location of the project first. What are the average wage rates? What is the recommended living allowance and per diem for the area? Many times these costs are underestimated and this causes jobs to be over budget. Manpower is needed to get the job done. How many employees do you currently have in that area. How many will need to travel, and how many new hires will you need? Of course you have the cost of materials and equipment as well. It is important to know who stocks the material and equipment you need to ensure timely delivery and availability.

How do you calculate the price of building? You just need to multiply your area value by the construction rate per square foot or square metre to get the building cost. The plot's location, the possible cost of labour and raw materials, etc., are some of the variables that affect the building rate. Leveraging historical data and industry benchmarks can also lead to more accurate forecasts. Estimators look for patterns and trends in labour and equipment costs by examining previous projects with comparable features. This data-driven methodology improves the accuracy of cost estimates.

During the early stages of a project, the scope is often uncertain and subject to change. It is common for new ideas and requirements to emerge, leading to scope creep. In such cases, a top-down cost estimate might be more appropriate. A top-down cost estimate involves looking at the project as a whole and estimating the cost based on high-level assumptions and expert judgment. This approach allows for flexibility and accommodates potential changes in scope. As the project progresses and the scope becomes more defined and stable, a bottom-up cost estimate can be employed.

A project's cost breakdown shows every cost category for that specific project. These are often listed throughout all project activities and consist of labour and material costs, as well as, less frequently, outsourcing, logistics, and overhead costs. How is a budget estimated? Determine your take-home (net) income first, and then get a sense of how much you're currently spending. Apply the following last 50/30/20 budget principles: 20% went towards savings and debt payments, 30% towards wants, and 50% towards requirements.

First question, what level is the estimate FEL1? Next, who is the audience? Having worked on EPC projects as prime, we typically developed 2-3 estimates that would get more and more accurate as we got closer to finalizing either a proposal or signed contract with the customer. Generally, for CSA and MEP portions we could estimate the facility fairly closely. For process equipment, power, utilities, and automation we would spend more time with vendors to ensure our assumptions were accurate. Prior to finalizing our estimate for a contract, we would validate each major trade package estimate with 2-3 local subcontractors to ensure we captured current market conditions and familiarize the local subcontractors with the project.