If you work in the construction industry, you know that your business profits depend on delivering a solid estimate. Your ability to arrive at an accurate, competitive estimate is the critical first step to any successful building project.
For many business owners, this is also one of the most perplexing responsibilities included in their job duties.
There are some tools that can help to make construction estimating slightly less complicated, such as an online construction cost calculator. But, estimations can still be a daunting task, even for the most experienced builders.
Want to find out how to save money with your construction estimates?
Read on to find out five money-saving constructing estimating tips that really work!
The Top 5 Construction Estimating Tips to Save You Money
In the construction business, accurate building estimates are essential to making money. If you bid too high, you might lose out on getting the job. If you bid too low, you might end up overspending on costs that could leave you in the hole.
A winning construction estimate comes down to a careful balancing act that requires you to consider the calculations of time, materials and labor while also keeping your final bid lower than your competitors. Then, you have to ensure that you will be able to deliver work that is cost and time-efficient, while still maintaining the highest possible quality.
Many would find this part of the job far too stressful, if not downright impossible. And, there may be times that you feel the same way.
Still, it must be done.
So, we’ve come up with 5 tips that will help you save money when making your construction estimates.
1. Plan for Success
Creating a plan for success right from the start can save you and your client a lot of time and tension in the end.
Sure, everyone knows that you need to have an idea which direction you’re heading before take off, but guaranteed success requires much more than that.
It’s imperative that you cover every detail of the project with your customers, and leave no stone unturned during the planning phase.
Mapping out the perfect plan is a lot easier before you get started versus after you’ve already begun, or even worse, once you’ve completed the job.
2. Use a Master Checklist as Your Guide
In addition to calculating the costs of labor, choosing the materials, creating a timeline, and planning the job’s details, you have things like building permits and landscaping to think about, along with a host of other elements and soft costs that are included in any project.
Make sure that you have put together a master checklist, and that you bring it with you to every job site. This way, you won’t forget the less obvious items that, although seemingly inconsequential, can end up costing you time and money.
3. What You Don’t Know Can Hurt You
If you find that your expertise is limited, don’t try to extend yourself beyond those limitations. Instead, call in the right professionals to help you along the way.
It might appear that carrying the load on your own would be the most cost-efficient method, but that can lead to costly mistakes, especially if you happen to run into a problem mid-project that you can’t solve.
Be willing to allow others to take the lead in areas that you might be lacking.
4. Don’t Underestimate Labor Costs
Labor costs are a major chunk of the overall budget in practically any construction project. However, many construction business owners are tempted to cut costs of the price of labor in hopes of shaving down the price.
This can prove to be a major misstep once you get started on the job. It can quickly eat into your profits, and, if you aren’t careful, it might even cost you more than the job itself is worth.
If you are having doubts about your labor costs, it’s better to err on the side of caution. Overestimating your labor costs comes with an easy fix. And, it’s doubtful that you would hear any complaints if you wound up recalculating the final price by removing the cost of added labor.
But, underestimating labor costs is likely to play out an entirely different, and not so advantageous, way.
5. Get the Right Construction Project Management Software
The right construction project management software can save you time and money by doing a lot of the work for you. And, it’s sure to make your job, and your life, a lot easier.
Today’s high tech construction software offers options like timekeeping, labor productivity, and production tracking. And, the most technologically advanced software can actually give you a whole lot more. Even details like construction applications can be easily managed and organized with the right system.
Want to Find Out How Construction Software Can Help You?
Although construction estimating will always take some effort, the right software can make the difficult parts of your job much easier.
If you’re looking for just the right construction management software to lighten your load, you don’t have to look any further. We provide expert construction technology that fits your needs.
We have the solution that can help anyone who works in the construction industry save time, money, and stay organized from start to finish.
Are you ready to find out how construction management software can make your next job simpler?
Contact us today to find out more about the construction software that can help cut the time and costs of project management and save you money along the way!