Contractors have come to rely on cost estimation as a vital means of bolstering their competitive edge when bidding for particular projects. Nonetheless, establishing a sensible budget involves a complex array of pathways, information, and documentation. By redesigning this process, we can ensure that contractors are able to produce estimates more quickly while maintaining the same level of quality and thoroughness. This paper offers a thorough examination of successful strategies for enhancing the construction estimation process.
Data Entry Guidelines and Formats
A frequent contributor to inefficiency in preparing estimates is the absence of standardized data and document formats. Having a standard for estimating these components is beneficial as it establishes a basis for project estimations.
Initially, gather a standardized cost database that includes current costs for materials, equipment, and labor for each geographic region and the specific types of projects being considered. Subscribe to the mailing lists that provide updates from benchmarks related to accurate pricing.
Secondly, create templates for the concrete estimating services that will be used in the estimates, ensuring that all categories and sections with formulas are pre-filled. As an example, your template ought to include columns for costs associated with site work, foundation, structural systems, finishes, electrical work, plumbing, heating, and air circulation, among others. Begin with the estimates that are already available and typical for all projects.
Handle Digital Drawings and Documents
It makes the process of estimating slower when one has to search for project drawings and specifications that are not organized. Establish a conventional filing system so that every estimator is aware of the location for hard copies of design documents related to each estimate. Restrict permissions in such a way that all team members are authorized to access the drawings or specifications in real time. The files need to be cloud-stored so that estimators can access them remotely. Project files help prevent unnecessary time loss during estimation as well.
Construct Risk Management System: Implement Construction Cost Estimating Software
The estimation workflow is the optimal method for improving cost estimating service processes, and its effectiveness is amplified by using reliable construction estimating software. IT applications serve as an effective hub for the collaborative meeting of the aforementioned processes—cost benchmarking data, templates, and project document exchange. The appropriate software can save time on repetitive tasks such as removing quantities or setting prices, generating reports for various projections, and making it easier to connect with other systems like accounting or project management tools.
It is necessary to introduce estimation software into the workplace and use it correctly. Although this may require considerable time and resources initially, it will prove more productive and cost-effective in the long run. Cloud-based platforms enable real-time interaction during the estimation process, allowing multiple estimators to work simultaneously. Whether the software meets the need for integration between design and reporting tools determines how the requirement to define prices in a certain way can best guarantee optimal process optimization.
Set Up Well-Guided Roles for Estimators
Many projects today lack a clear definition of the roles of project management, engineering, and estimation executives in project estimation, resulting in delays and duplicated efforts. Establish a clear handover process between design/engineering and the estimating team to eliminate this waste. This involves cost estimators detailing the precise documents required from managers or engineers at each stage of the project. Roles can be created to mitigate coordination problems by categorizing them based on the type of project—civil work versus structural work, for instance—and assigning different estimators to concentrate on each category.
Boosting Data Reusability to Improve Estimation Speed
Data analysis of previous project estimates ensures ongoing flexibility. Ascertain the situations in which estimating processes consume excessive resources. As an example, compiling pricing data on specific materials or systems for a construction project can consume more than 10% of the overall cost time. By establishing standardized costs for the databases in these categories, the speed of additional estimates increases.
Estimation teams ought to take into account the side effects of design choices, particularly those involving custom architecture that are difficult. These can impact the time needed for estimation. Make designers and managers aware of areas where specific design choices can lead to higher project costs or extended overall estimation time frames.
Conclusion
Estimating serves a valuable function in construction. Consequently, an estimator can concentrate on extracting the crucial information from quantity takeoff, pricing data, and documents concerning project costs and related work, as this is a vital aspect of proficiency. When it comes to estimating the streamlining process—data sources, templates, software systems, and the responsibilities of those involved—practicality and simplicity should take precedence. This then allows teams to enhance productivity over time by raising the levels of reuse and feedback at every procedure. When an organization has the proper systems and methods in place, construction estimating should not be a never-ending maze; rather, it should serve as a route to successful bids and profitable endeavors.
