Building projects differ greatly from products manufactured on assembly lines: each building is unique, and this also applies to groups of buildings that look similar externally. Because of this fact, for each project, construction cost estimation must be done individually. This approach is very distinct from the production of assembly lines, where all products are identical and have the same cost.
Elements of a comprehensive project cost estimate
A professional Diagram and estimating service in Ohio goal is to provide accurate information to the project developers about the planned projects possible costs. When stakeholders have accurate cost estimates, decisions can be made with authority regarding project feasibility.
Quantity Takeoff: The estimator will work to develop the correct materials required in the project and accurately identify them. Without an accurate takeoff and proper Building & Unit Diagrams in Ohio, the entire estimate will be inaccurate.
Labor Hours: To estimate the labor hours needed to complete a given project, the estimator will use his experience. Based on the complexity of each stage of the project, the varying levels of labor productivity expected will be taken into account.
Labor Rates: Estimating labor rates for a given craft begins with a basic salary and benefit estimate. The burdens of different taxes are taken into account in this estimation. The potential for overtime work and the increased costs associated with these extra hours must also be taken into account by the estimator.
Material Prices: It is more complicated to estimate the cost of materials than it might initially appear. Depending on current market demand and supply, the amount required, the cost of transportation to the site, and even exchange rates, the cost of a given material fluctuates greatly if the materials are to be shipped from another country to the US.
Equipment costs: The cost estimator must take into account a number of equipment factors, including the cycle times, the capacity of the equipment, and the cost differential that occurs when the equipment has to be rented rather than the equipment it already owns.
Subcontractor Quotes: Specialty trades operating as subcontractors typically complete portions of the project. Their quotes should include, as the general contractor, the same careful considerations of labor, materials, and equipment costs.
Indirect costs: In the overall estimate, an accurate estimation of indirect costs is critically important. In order to arrive at a true estimate of project costs, land acquisition, permits, design fees, office support, temporary on-site utilities, and mobilization are just a few items that must be considered.
Why is accurate construction estimation important?
It is virtually impossible for the original estimate of the estimators to be the same as the final price tag of the project. Comprehensive estimates, however, permit developers to make important choices. In determining the feasibility and profitability of a potential project, the estimate helps developers. The procurement of funding will also depend on the report of the estimator. Later in the development of the project, developers can make important decisions about project design changes and/or materials that have a positive or negative impact on cost.
Perhaps, most significantly, a precise estimate keeps all sides focused on delivering a project on time and under budget. For increased costs and overruns, it holds a developer and construction company responsible. At Ryon Cramer Consulting, we approach each step of the estimation process with honesty and integrity. Our objective is to always provide the necessary information for our customers to make the best possible decisions on each of the projects.