What is Construction and Building Estimating?
Ever feel like you're running on fumes, juggling endless tasks on-site, and still not seeing the profits you deserve? You're not alone. Estimating costs on a construction project can be one of the biggest headaches in the job, but getting it right is key to making sure your hard work pays off. Construction estimating techniques help to ensure that the contractor doesn't lose money and that the customer doesn't overpay for the service they're receiving. Let's break down what construction and building estimating is all about, and how it can help you not just survive, but actually thrive in this tough industry.
Why It Matters
Getting figures right is crucial because they form the foundation of your budget, your quotes and ultimately, your profits. Picture this: You've won a project, but halfway through, the costs start creeping up—materials are more expensive than you thought, labour takes longer, and suddenly, you're out of pocket. Accurate construction estimating is your first line of defence against this kind of stress. With a building cost estimator, it allows you to plan your resources, control costs, and protect your profit margins.
A well-prepared estimate can be the difference between winning and losing a job. If your estimate is too high, you might price yourself out of a job; too low, and you could find yourself losing money, or even going bust. Last year a record 4,371 building firms collapsed in England and Wales. That's why construction and building estimating is so important.
The Different Types of Building Estimates
You might be thinking, "I know how to put together a rough estimate—I've been doing it for years!" But there’s more to it than just a ballpark figure. Depending on where you are in the project, different types of estimates come into play, each with its own purpose.
1. Preliminary or Benchmark? Estimate
When to Use: Right at the start, when you're just getting a feel for the project.
What it Does: Provides a rough cost estimate to see if the project is even feasible.
How Accurate: Not very—expect a margin of error around ±25% to ±50%. Think of it as a broad brushstroke to get the ball rolling. This is where EstimatorXpress can help.
2. Detailed Estimate
When to Use: Once the plans are in place and you’ve got all the details.
What it Does: Breaks down costs into fine detail—materials, labour, and everything in between. Start by simplifying your workload with EstimatorXpress, the software designed to make accurate estimating easier than ever.
How Accurate: Pretty close—usually within ±5% to ±10%. This is where you really get into the nitty-gritty.
3. Bid Estimate (for large contracts)
When to Use: When you're ready to throw your hat in the ring for a contract.
What it Does: Combines your detailed estimate with profit margins and risk assessments to create a competitive bid.
How Accurate: It needs to be spot on, or you risk losing money or the job.
4. Control Estimate
When to Use: Throughout the project, as a way to keep track of actual costs against your original estimate.
What it Does: Acts as a benchmark to help you manage the budget and handle any changes on the fly.
How Accurate: It should be as close to reality as possible—this is your financial lifeline during the build.
The Construction Estimating Process: Step-by-Step
Now, how do you go about creating these estimates? It’s not just about guessing or going on gut feel—you need a solid process to follow. Here’s a simple breakdown construction and building estimating:
1. Review the project
Firstly, open a brand new page for notes in a notebook. Nothing worse than reading something of an old job thinking it’s in your current one. Simple, but it gives you a fresh perspective on the current job. Once you have the set of plans, look at the imagery of the plan. Predominantly Existing vs Proposed. Flash between the two because not all plans describe what renovation works are going to be happening, its usually imagery only. Once you see the little changes, write notes isolating the location of the work. Doing this stops you from missing the little bits as you could do the large work and potentially miss the little bits later. After you’ve noticed the differences between the plans, start to think about accesses to the different parts of the build. Spacing down the side or rear of the house, this helps you think about storage and speed of the work. These are all things you should be writing down on a note pad as its going to help later on with the estimate. Then, give a read of the specification before starting on the estimate.
2. Quantity Take-off
This is when you start scaling off of the plan. Making sure measurements are accurate for the correct take-off. E.g. An external wall being built in brick and block 6m x 2.4m would be 14.4m2. Knowing that m2 size, you can then work out the number of bricks (60pm2) and blocks (10pm2) that are necessary. Luckily, EstimatorXpress software does all of this for us by putting in the length and height dimensions. Do this for all aspects of the job, from foundations to minor finishing. Including all the small renovation items. (This is the fast part).
3. Specification Application and Cost Analysis
Once that information is in the software, open the specification backup and go through the relevant lines of information. This is where you can make sure you have the correct material and the right Gangs doing the work. You can also adjust how fast jobs can be done. This will go back to analysing the plans for access (as if there is no additional space on the site, jobs are going to take longer to finish). Luckily, in the EstimatorXpress it adopts rates based off of industry standards such as SPONS/SMM7/NRM/NRM2. Simplified - The industry standard of how long it should take a qualified bricklayer to lay 1m2 of bricks. The software has this information on all trades doing all types of work on-site. (This is the slow part)
4. Risk Assessment and Contingency
Once the work has been estimated and the specification has been read through about 10 times, make sure profit margins and overheads have been applied to the cost. We would recommend 15% of the cost of the job on both of those items. Also, apply an inflation rate of 5% to the cost of the job as well. There is an average increase in cost in the industry of roughly 3-5%. So, choose the higher price making sure that funds aren't drained throughout the job.
5. Finalise Your Estimate
Bring everything together into a comprehensive document. Double-check your figures and make sure nothing’s been left out before presenting it to your client or using it for your bid. Financial consequences of risks need to be included in the total project expenditures.
6. Monitor and Adjust
Use your estimate as a guide throughout the project. Track actual costs against what you predicted and be ready to make adjustments if things change.
Why you can rely on EstimatorXpress for your Construction estimate costing:
Why It’s Great: EstimatorXpress is built for UK builders and is all about making your life easier – by saving you time and stress.
It helps you create accurate, detailed estimates in a fraction of the time it would take builders manually.
With built-in templates and a comprehensive price book, you can trust that your figures are spot on. Not to mention hidden expenses such as legal fees, site surveys and stamp duty are accounted for. It also takes into consideration wear and tear, wastage and inflation. Try our ROI calculator to see how much profit you could be missing out on.
You can rely on the automatic Price Tracker+ to give you the correct rates or manually adjust prices based on your own suppliers and avoid those nasty surprises that eat into your profits. By being precise, you’ll also build a reputation for reliability and professionalism, leading to more business and better margins.
The software provides detailed insights into the quantities and types of materials needed, the labour required, and equipment usage for each project phase. This precision helps prevent the common pitfalls of over-ordering or under-ordering, which can result in a waste of money and your time.
Check out essential features and benefits of EstimatorXpress here.
Let HBXL Estimating Service take care of your construction and building estimating:
Why It’s Great: Sometimes, you just don’t have the time or energy to do the estimating yourself. That’s where our HBXL Estimating Service comes in. Let our expert team handle the heavy lifting, delivering accurate, detailed estimates that you can trust. It’s like having a top-notch estimator on your team without the full-time benchmarks or full estimates.
Fast responses: A quick response, saves you time on the initial costing process – so you can focus on the jobs you need to get done such as business growth. This will enhance productivity and efficiency, enabling your business to grow its strengths and better project results.
Worry-free: With our team of estimators, you have expertise on demand, who know the latest industry trends, materials costs, and regulatory requirements.
Professional Accurate quotes: Be sure to impress your clients with professional quotes which include 3D models and colour using HBXL software EstimatorXpress. Accurate and attractive estimates are more likely to win jobs by demonstrating your reliability
Transform Your Building Business with Simple Changes to your estimating
At the end of the day, construction and building estimating is more than just a necessary evil. It’s a crucial part of your business that, when done right, can mean the difference between just getting by and really thriving.
Whether you choose to dive into the numbers yourself with EstimatorXpress or hand it over to the experts with our HBXL Estimating Service, the key is to make sure your estimates are accurate, comprehensive, and tailored to the way you work. So, if you’re ready to make these simple changes, take the guesswork out of your projects and start seeing the rewards you deserve, it’s time to get serious about your construction estimating. With the right approach and the right tools, you’ll save time and stress.
Start by simplifying your workload with EstimatorXpress, the software designed to make accurate estimating easier than ever. Or let our HBXL Estimating Service handle the heavy lifting, so you can focus on what you do best.
Try EstimatorXpress for free, download here.
Upload your plans to the Estimating Service website.
Or email them to estimatingservice@hbxl.co.uk today!
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