When Does Construction Estimating Become Critical?

Accuracy and foresight, these both factors are important in Construction estimating processes. But the main question arises here when does the estimation process become critical? You must understand its importance and apply this operation to make the difference between a project’s success and its failure. In recent years, the need of construction estimation has become a need for contractors and investors. Why so? Because inflation has caused so much instability in construction-related work. 

If you do not want to take risks on your construction projects then hire cost estimation services from a well-known company like SMA Estimating LLC. Use these services to finish your project on time based on exact estimates. The right figure of these estimates is the reason that can either be a success or failure of your project. 

In this contemporary construction industry, the work of construction is not difficult when done with the right tools and well-executed construction plans. That is why in this article, you will get to know when you need construction estimating for your projects!

Key Moments When You Need Construction Estimating!

In Starting Phase of Project Planning

Suppose you are working on an Electrical estimation project. To make things work out properly you need to use construction estimating during the initial planning time of the project. In this stage when little information is known, a preliminary estimate is best for building up the base for your project. You can consider it as a preventive step to not facing budget overruns or, worse.

Strategic Criteria

Pilot Experiments: look into the details of whether the project is feasible within the project budget or not!

Budgeting: After confirming, make sure to generate a clear financial framework.

Stakeholder Confidence: This criteria will help you give confidence to investors, lenders, and other stakeholders.

During the Design Development Stage

When the project starts developing from the planning stage. There comes the stage of design development and here comes the role of construction estimation. Accuracy is a must! Make sure to match your designs with your budget. Whatever materials, methods, and design you are choosing, make sure it does not exceed your construction budget.

Strategic Criteria

Cost Control: Design your project in a way that aligns with your budget!

Value Engineering: As an estimator, find alternatives and cost-saving methods without compromising quality

Scope Management: Make sure that the project’s scope matches the budget.

In Bidding Phase

The bidding phase is the most important part of any contractor’s life. Construction estimates have a very important role in winning bids but until they are accurate. This phase in the construction determines the exact cost of materials, labour, and other construction work.

Strategic Criteria

Bid Comparisons: You must evaluate bids based on comprehensive cost estimates.

Contract Negotiations: You can use construction estimates for negotiation purposes.

Vendor Selection: Choose suppliers and subcontractors who offer the best value.

On-Going Construction Phase

When the construction work starts, the alignment of construction estimating is very critical to the project budget. Also, real-time cost tracking helps to identify over-budgeting.

 Strategic Criteria

Cost Tracking: Make sure that nothing affects the allocated budget.

Change Order Management: If a client wants to change something then estimate again and match with the project budget.

Cash Flow Management: Make sure sufficient funds are available when needed.

 In Project Closeout

Do you know construction estimates are also very important in the project closeout time? Why so? Because final estimates are critical for financial reconciliation.  

Strategic Criteria

Final Reconciliation: You must compare actual costs with estimates.

Lessons Learned: Analyze estimating accuracy to improve future projects.

Stakeholder Reporting: The reports of your estimates must be presentable and accurate. Re-check everything and then submit it to stakeholders.

In bad Market Conditions

You can need the construction estimation process in bad market conditions. There is no way out! Economic fluctuations and market conditions can derail your projects. That is why it is important to take smart steps and maintain project viability.

Strategic Criteria

Material Price Volatility: Adjust your estimates even if there is a bad market condition or fluctuation in the prices of the materials.

Inflation Rates: Accounting for inflation and its impact on project costs.

Conclusion

In the current year, the construction industry still facing some challenges due to inflation. Fluctuating material costs, labor shortages, and stringent regulations have caused difficulties for contractors. But everything has a solution! In short, construction estimating becomes critical for such types of situations. You need to estimate everything from the starting phase of your project to the last stage to execute your projects within budget and time. But now when you have read our article, you can understand the importance of accurate estimation. Project managers, estimators, and stakeholders should handle their challenges with expert cost-estimating methods. However, you can hire a professional estimating company for your project needs in whatever phase of the project you are standing.