How to Improve the Speed and Accuracy of Your Construction Estimates
Introduction
Accurate and timely construction estimates are vital for successful project planning and delivery. Precise estimates not only ensure better budgeting but are more likely to lead to profitable job outcomes and a happy client at the end of the build. In a competitive industry, the ability to produce reliable estimates quickly can set you apart from the competition and lead to more project wins. Good estimating software should so be integrated with build program tools to help you allocate resources and schedule deliveries of materials, book in subcontractors and reduce the likelihood of project delays. This article provides practical tips to help you improve both the speed and accuracy of your construction estimates, ensuring your building projects stay on track and within budget.
1. Use Advanced Estimating Software
In today's building industry, leveraging advanced estimating software can significantly improve the speed and accuracy of your estimates. Estimating software solutions offer handy features that streamline the estimating process, ensure consistency across projects and help ensure you are only taking on profitable jobs.
Advanced estimating software integrates with other project management tools, allowing seamless data sharing and reducing the risk of errors from manual data entry. A great example of this is EstimatorXpress and BuildProjex. You can push your detailed estimate into the BuildProjex task and job management cloud-platform, along with order schedule, build details schedule and all your documentation, then in real-time collaborate with your team, subbies and clients to keep the job on track and on budget.
Tools like EstimatorXpress often include templates and predefined estimating calculators, which can save considerable time when preparing estimates. By using building specific estimating software, building professionals can handle more construction estimates in less time while maintaining high accuracy.
2. Develop Standardised Estimating Processes and Estimating Templates
A standardised estimating process is essential for consistency and reliability, a project or job specific template, if you will. Because while no two jobs will be exactly the same, most of same principles will apply.
By following a set procedure, you can ensure that all necessary steps are taken and nothing is overlooked. This process should start with a thorough work assessment, where you gather all relevant details about the job's scope and requirements.
Next, conduct a detailed material and labour cost analysis. Using standardised forms and checklists can help ensure that all potential costs are considered. Solutions such as EstimatorXpress guide you logically through this process.
Time is key to job profitability. Being able to run an efficient build project against your planned build schedule, will help you to ensure your materials, labour and plant are all where they are needed, at the time they are required.
It's crucial to include overheads in your estimates (EstimatorXpress helps you do this) as well as contingency planning in your estimates to account for unexpected expenses or changes in project length or scope (EstimatorXpress calculates wear and tear/theft/wastage etc as an allowance on each and every material so you have always got a buffer). With profitability in mind, you will also need to consider your own profit margin when establishing your estimating templates and processes. Again, a solution like EstimatorXpress can do this calculation in seconds. Just tell the software how much you want to make!
Once in place, you will find that you are able to produce more reliable and comparable estimates.
3. Maintain an Updated Cost Database
An accurate and regularly updated cost database is vital for precise construction and new build estimates. The cost of materials, labour, and equipment can fluctuate due to market conditions, so having the most current data is crucial.
The best estimating software tools have price tracking built in (although very few actually do!), giving you the confidence that your estimates are accurate, but also giving you the flexibility to adjust the prices as you require. An example of this may be where you have preferential below-market rates with a supplier.
If you wanted to manually maintain an updated cost database, establish a routine for reviewing and adjusting prices. This might involve subscribing to industry publications, attending trade shows, or using specialised services that provide regular updates on construction costs. Bear in mind though, you might have to manage literally hundreds if not thousands of prices across a big project!
By ensuring your cost database is up-to-date, you can produce estimates that accurately reflect current market conditions, reducing the likelihood of budget overruns and project delays. To run a profitable building company, you have to keep a close eye on your costs.
4. Historical Estimating Data and Analytics
Historical data from past projects can significantly improve the accuracy of your estimates, and links back to the previous paragraph about building up your estimating templates. Historical data provides a benchmark, helping you understand the actual costs and timelines of similar projects. By analysing this data, you can identify patterns and trends that inform future estimates.
Data analytics tools can assist in this process by organizing and analysing large datasets, revealing insights that might not be apparent through manual analysis. However, your own experience and local knowledge can also guide you greatly. Even just tracking your estimated versus actual costs in something like Microsoft Excel will give you a great starting point to understand how well you are estimating versus the job on completion.
By using historical data, you can make more informed decisions, anticipate potential challenges, and identify opportunities for cost savings. This data-driven approach ensures that your estimates are based on real-world outcomes rather than assumptions, enhancing the accuracy of your estimates.
5. Collaborate with Experienced Subcontractors
Collaborating with experienced subcontractors during the estimating process can improve the accuracy of your estimates. Subcontractors bring specialised knowledge and practical insights into the actual costs and potential challenges associated with specific trades. By involving them early, you can obtain more realistic and detailed cost information.
Subcontractors can provide quotes based on their expertise, which helps in identifying any aspects that might have been overlooked or underpriced. Furthermore, their feedback can help refine your estimating process and improve your understanding of market rates for labour and materials.
Job Management tools such as BuildProjex allow you are your subbies to communicate efficiently, before, during and after a job is complete. You can store and share any relevant documents to the job, upload images, exchange messages, update you build schedule and loads more. Once you have your subbies quote in, get it nailed in a contract from ContractsXpert which offers template contracts between your company and subcontractors.
This collaboration prior to job start not only improves estimate accuracy but also fosters strong working relationships. These relationships can lead to more efficient project execution and better overall outcomes. Involving subcontractors early ensures that your estimates are comprehensive and grounded in trade-specific experience.
6. Conduct Site Visits and Assessments
Conducting regular site visits is crucial for gathering accurate information about site conditions and the specific building project requirements. Physical site assessments allow you to identify potential obstacles, such as access issues, ground conditions, or existing structures that might impact the project.
During site visits, you can collect detailed data and photographs, which can be used to create more precise estimates. This hands-on approach reduces the risk of assumptions and errors that can lead to cost overruns and project delays. It’s also another way you can use tools like BuildProjex, which we touched upon in the previous section.
Moreover, site visits enable you to engage with on-site staff and gather their insights, which can further refine your estimates. Understanding the unique characteristics of each site ensures that your estimates are tailored to the specific project conditions, enhancing their accuracy and reliability. For example, you may need to account for certain Health & Safety aspects e.g. lack of access means you’ll need to crane something in? You need to incorporate this in your estimate.
7. Invest in Continuous Estimating Training and personal development
Investing in continuous training and education for whoever is doing your estimating is crucial for ensuring that your estimates continue to be as accurate as possible. The building and construction industry is constantly evolving, and so too are the estimating software tools that you are either already using, or looking to use,
Skills training, workshops, seminars, and online courses, such as Estimating for Construction Skills Bootcamps by HBXL offer valuable opportunities for professional development. These resources help estimators stay updated on new materials, techniques, and software tools that can improve the accuracy and efficiency of their work.
8. Validate Estimates with Third-Parties, or Benchmark your estimates
Validating your estimates through a third-party can add an extra layer of accuracy and credibility. Independent experts can provide an objective assessment of your estimates, identifying potential errors or overlooked aspects that might affect the final cost.
Third-party reviews involve having experienced professionals (such as those at HBXL’s Estimating Service) outside of your immediate team evaluate your estimates. This external checking can reveal issues that an internal review might miss. It also provides an additional level of assurance to clients, demonstrating your commitment to transparency and accuracy.
Alternatively, in order to gauge whether a job is viable before you begin a full estimate, there are Benchmarking services where the independent service will look at similar projects, and be able to give you a ballpark figures of whether there is the budget available to cover the costs of the project. You can find out more about Benchmark reports here.
By incorporating a benchmark or third-party review into your estimating process, you can enhance the reliability of your estimates and build greater trust with clients and stakeholders.
Conclusion
Improving the speed and accuracy of your construction estimates is crucial for delivering successful projects and maintaining client trust. By using powerful estimating software, developing standardised processes and templates, maintaining an updated cost database, leveraging historical data, collaborating with experienced subcontractors, conducting site visits, implementing real-time communication, investing in continuous training, and validating estimates with third-party reviews, you can significantly enhance your estimating practices. These strategies not only improve the reliability of your estimates but also streamline your workflow, leading to better project outcomes, increased client satisfaction and ensuring that the jobs you win work for actually make you money. Ready to give estimating software a try?
