Software Estimation-For Construction

Check Out Nick's New Book On Amazon

Once all the direct costs for the project have been priced, the estimator has two options. The Cost Analysis or Consolidated Estimate sheets can be used for any extra adjustments or price changes or the total costs for every subdivision can be kept on an Estimate Summary sheet, to allow everything to be carried on to one sheet when the time is ready for the bid. An Estimate Summary sheet is usually the best way of tracking the various costs unless there are not many items to price. Everything should be meticulously checked and double checked, to prevent errors. Either a plain form with columns on or a pre-printed form can be used for this. Software Estimation can be a valuable time saver if there are certain listings used frequently within the company. In this way, you can use sheets with the correct categories or column headings already printed on them.

If you use a Software Estimation program, the items will be listed in the correct columns, the categories will be on the sheet and the dollar values will have the correct mark ups added. So, for indirect costs, the sum of every column will have a different percentage near the end of the estimate. Subcontractors normally provide over half of the necessary work on a typical building so there are a couple of special points to remember when preparing the bid.

The contractor's scope of work needs to be well understood. Bids from the various subcontractors have to be compared, not only the pricing but checking that everything has been taken into consideration for pricing, whether the subcontractors have allowed for it or not. A competitive bid might only be low because of items not included in the estimate. Examples of such items would include temporary protection and scaffolding, hoisting, cutting and patching. Another common problem is that subcontractor bids sometimes arrive on very day that your bid must be in, leaving you precious little time to finalize your own bid, after comparing the subcontractor bids and checking what they have included and excluded. If you are using Software Estimation, the process will be a lot clearer and quicker. The cost estimator will apply unit prices to the quantities and the take offs will be clearer. Sketches, footnotes or symbols help to avoid ambiguities and the quantity estimator can help the cost estimator a lot.
 Construction Estimating

Accurate software estimation methods help contractors bid correctly and make more money