The Construction Estimating Process – The 9 Steps
Construction estimation follows an in-depth process that includes calculating the costs of everything needed for a project.
It’s important to understand the construction cost-estimating process and practices to give yourself a better idea of what factors will affect the final price of your project and ensure you’re not taken advantage of along the way.
By following the correct construction estimating procedure, you’ll understand what to expect before you put any money into anything and get a better idea of the timeline for completion.
We’ve put together an in-depth, step-by-step guide to what goes into the construction estimation process for every project.
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The 9 Steps
Step 1 – Evaluate Bid Package
Your bid package gives our estimators a better idea of what the job involves, including the scale of the project, the bid submission date, the site’s location, past drawings, and any other features we should know about before we make the next step.
Step 2 – Carry Out A Material Take Off
After receiving the project plans and job specifications and factoring in waste, specific measurements, and quantities, our team of estimators uses these to determine what materials are required for the job to give the contractors and us a definite figure in terms of costs.
Step 3 – Contact Suppliers And Contractors
Once we’ve established the required materials, we’ll contact the specific suppliers to determine the final price details. During the operation, we’ll have to factor in the quote’s validity and how much bulk pricing will impact the final order costs.
Step 4 – Determine What Manpower Is Needed
Using our takeoff, we’ll be able to determine the labor requirements for the job, from how much human resources are needed to the number of hours the job should take. To give an accurate figure, we must factor in everything that will impact the labor, including wages for each person, sick days for staff, annual leave, taxes, insurance, and any other costs.
Step 5 – Find Out The Equipment Hire Costs
Our estimators must factor in the equipment, tools, and other expenses required for the job. For example, a digger may be needed for a specific aspect of the project, and they need fuel to operate.
Step 6 – Establish The Costs Of Bonding And Insurance
No construction company will take on a job without general liability insurance, whether it’s builders’ or professional liability insurance; regardless, it’s another fee that must be factored into the final price.
Usually, contractors have an insurance policy that spreads across a calendar year, but this may not cover the job, depending on its scale.
Step 7 – Factor In Any Additional Costs
Any other additional costs that don’t fall into the machinery or labor categories need to be factored in, like permits, administrative costs, management fees, insurance, utilities, etc.
Step 8 – Profit And Contingency
Before our estimator determines the final amount for the bid, profit and contingencies must be added. Contingencies refer to any unplanned situations that may arise on the job, e.g., overruns, whereas profits are the sum the contractor receives from the job.
Step 9 – Transform The Construction Estimate Into A Form Of Bid
After the final construction costs are added, we’ll double-check everything with our estimating team and send them to all stakeholders for the last price checks. In the meantime, we’ll prepare what’s required for the bidding procedure, get our bid manager to review it, and wait for them to give the green light.
Why You Should Choose Mo Engineers For Your Construction Estimation
Mo Engineers is the leading Masonry estimation company in Florida and across the United States. We offer a five-star professional service, following a rigorous process with a fast turnaround.
Would you like to find out more? Contact us to start your dream project today.