Cost estimation is key in construction project management to ensure efficiency in the control of resources for any building project. Appropriate estimation enables construction and project management teams to plan, direct, and control costs as well as schedule manpower, machines, and materials. The need for efficient estimates in construction cannot be overemphasized as an essential component of the success of construction. The role of estimation in the proper management of significant construction resources will also be highlighted in this article.
The Role of Construction Estimators
A Construction Estimator is an expert who examines project needs and characteristics to estimate costs and develop tenders. They’re particularly suited for quantifying every aspect of construction, right from the cost of materials and equipment to overhead costs and markups. They use their estimates to create project budgets and timelines. A few reasons why construction estimators are so important include:
- Ensuring Accurate Bids: They directly translate to the costs that contractors are likely to ask when considering certain projects. Realistic estimates mean tendering and bidding at a competitive price without compromising profitability.
- Planning Labor Needs: Their estimates of job hours enable construction firms to manage their workforce by estimating the amount of time that is required for certain tasks.
- Controlling Spending: They monitor the actual cost incurred on projects during implementation about what the budget had provided when quantifying the cost.
- Managing Risks: They also assist contractors in estimating probable cost escalations or other expenses that were not expected at first.
These estimators also have years of experience in the construction industry and make a point of updating themselves with the latest technology, such as CAD drafting.
Leveraging Construction Estimation Companies
As has been mentioned, quality estimating plays a significant part in construction resource management, which is why many contractors outsource it to Construction Estimating Companies. These firms offer specialized professional estimating services by certified specialists in all the construction fields.
The advantages of using such companies include:
- Getting Unbiased Projections: They act as independent assessors of project costs, so they are quite objective in their estimations.
- Accessing Advanced Software: Estimating companies use costly software that is exclusive to the company, such as CAD Drafting Services and BIM software.
- Increased Estimating Capabilities: They are likely to have more capacity for estimating than a contractor’s internal resources.
- Flexibility: They can avail its services on a call basis for a particular construction project if required.
When it comes to large construction projects with limited resources available for estimating, it proves advantageous for most contractors to hire professional estimating services.
The Estimating Process
Now let’s look at the typical estimation process followed by construction estimators:
- Review Blueprints and Specs: Estimators’ work involves analyzing project scope and parameters included in technical drawings, specs, architectural plans, etc. A CAD drafting service is frequently used.
- Quantify Materials: They estimate categories and amounts of construction materials required concerning size and layout.
- Estimate Equipment: Plant and equipment needs of projects are derived from the scope and characteristics of projects.
- Determine Labor: The number of workers by skill (masons, carpenters, etc.) and man hours required are forecasted next.
- Factor Overheads: Other costs including permits, insurance, and rental equipment are then included.
- Calculate Fees: The estimate includes design fees, contingency buffers, and profit margins.
- Finalize Estimate: An accounting is made of the costs of the project budget for resources by classifications.
Estimating involves assessing several thousand work items, assigning labor crews, obtaining quotes from the vendors, and considering other such qualitative factors.
Resource Planning Through Estimating
Let’s now discuss how vital construction resources like manpower, equipment, and materials can be effectively managed with the help of estimation data:
Labor Planning:
Accurate estimates are sufficient to give a detailed picture of the type and number of workers required. Construction managers can therefore be able to come up with the best workforce plans and calendars that will enable providing a sufficient number of laborers when required but not excess. This means that resource bottlenecks can be averted by recognizing such trends early enough.
Equipment Optimization:
Estimators quantify equipment such as mixers, batch plants, excavators, dump trucks, etc. for each phase. This helps logistics managers develop the equipment mobilization plan in coordination with schedule requirements while keeping the rental/transportation costs at the lowest level.
Material Management:
Since the material volumes expected in the estimate are known, site supervisors can correlate procurement and deliveries to construction phases. Due to the just-in-time delivery, the cost associated with inventory is reduced, whereas due to proper ordering of items with long lead times, the problem of shortage is also eliminated.
To summarize, a reasonably accurate estimate allows efficient planning, usage, and coordination of certain key labor, equipment, and construction materials for construction programs.
Conclusion
In conclusion, estimation plays a vital role in the management of critical resources in any building construction project. Whereas estimators come up with expected costs, their figures also enable efficient allocation of manpower, machinery, and materials required to complete projects within the specified costs and time. There are additional advantages to employing professional construction estimating services and software. Competent estimating therefore relates significantly to the success of any construction program as it enables driving informed decisions regarding resource planning.
