Do I Really NEED an Accurate Residential Construction Estimating?

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Residential home construction is a whole new kettle of fish when estimating construction costs because building a house is reliant on several very distinct sets of costs.

The first, which is commonly referred to as 'sticks and bricks' costs encompass each and every material that is required to build a residential property. The direct costs included in this evaluation include framing lumber, foundation material (concrete or other), windows, doors, roofing material, flooring material, drywall, carpeting, plumbing fixtures, etc.

Most of the tasks relative to the above list are generally performed by the builder's choice of sub-contractors and, because of their volatility and the fact that control of the project is dependent upon the work ethic and skill of others they must be carefully factored in when performing a residential construction estimate.

Other cost indexes that must be carefully considered are indirect costs which are made up of any labor that must be undertaken by the builders' own staff. Some of the variables that can influence this costing module are special tools that may be required for any distinctive projects, costs related to correcting any work not performed up to acceptable standards by other trades, or any other stage of construction that has to be redone due to shoddy workmanship or other extenuating factors.

Of course, the true cost of residential construction must also include expenditures relative to how much money the builder has to borrow. This estimate will have to include the cost of the loan and any interest charges that will be levied by the lending institution. The cost of the land, development fees, and any additional municipal or state permits that may become necessary must also be pre-determined and recognized as an integral part of residential construction estimating.

Labor, administrative, sales, taxes and marketing costs all need to be evaluated during residential construction estimating. And finally, the fluctuating cost of options is also an important factor that can and will eat into profits if not included in variable costs when doing a residential construction estimate.

A residential construction project estimate encompasses a calculation of the quantity, quality and accessibility of the many varied items required to perform a reputable job in conjunction with the expenses that will be incurred with each selection.

An estimated cost must be as close to the approximate total actual cost of the project as possible. Under estimating costs can lead to your company not providing quality service or materials, or worse still being unable to complete the job at all for the quoted price. Over estimating costs can lead to the project being undertaken by one of the many competitors in an often glutted market.

Residential construction estimates are an absolute necessity so that the buyer can obtain a reasonably accurate picture of what the finished product is going to cost. Based on the figures you provide he may then decide whether to go ahead with the project as set out, adjust his needs to meet his budget or abandon it altogether.

Accurate, realistic residential construction estimates are probably the most important of all the practical aspects that must be undertaken before any ground is broken for a residential dwelling.