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The Importance of Construction Cost Estimating and How to Succeed

In the construction industry, winning a bid is the ultimate goal. However, the road towards achieving that goal is full of twists and turns, making it necessary for construction cost estimators to possess the ability to pivot and adjust to unexpected changes. The first step towards winning a bid is to provide an accurate cost estimate.

Construction cost estimating is a comprehensive calculation used to determine the total budget required to complete a project. A preconstruction estimate is a critical phase that directly affects the profitability of the project. To ensure a profitable endgame, every detail of the project must be factored into the estimate, as mistakes can be costly even after construction is complete.

Calculating construction costs involves collecting elements of information, including direct costs such as materials, labor, and equipment, indirect costs such as utilities, legal fees, and permits, labor costs, and subcontractor costs. However, common cost estimation problems, such as not reviewing the work or underestimating the cost of labor and material supply costs, can derail the accuracy of the estimate.

To mitigate these problems, construction cost estimating software such as PocketQS can be used to save time, increase accuracy, and win more profitable projects. This software compiles itemized costs, labor rates, and material, precisely predicting the cost of a job and avoiding bidding too low or too high.

In conclusion, construction cost estimating involves several moving parts that must be precise and cross-referenced to ensure total accuracy. By studying common mistakes, using estimating software, and staying organized, you can eliminate unwanted surprises in your estimate and win more bids. Make the most of your time and improve your takeoff and estimating process with PocketQS bidding tools to increase profitability in your construction projects.

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