In the world of construction, winning bids for contracts is essential to the health of a company. Fail to win sufficient contracts, and not enough income comes in to pay the bills. Therefore, for any struggling construction company, getting to grips with the basics of construction estimating is vital for improved financial performance. With a strong estimation game going on, job numbers will increase along with the associated benefits.
Anyone working in the construction industry understands that many parties are involved in the various aspects. As such, it’s vital to collaborate with the various entities from the very beginning so that all factors are correctly built into the estimate. You are gaining the necessary information for the architects and client and taking the first steps to creating a strong working relationship. A client who understands that they can work well with you will look more favorably on the estimate presented.
Industry Specific Software
Making use of the recent advances in software to use a robust industry-specific program to run the figures through ensures accurate estimates. A good program like Procore construction estimating allows potential clients to receive accurate estimates. You can also put together quotes quicker thanks to the inbuilt AI for faster take-off and using saved data regarding labor and materials costs.
When a company consistently delivers projects within the estimated budget and time, with minimal problems, they build a positive reputation. And, of course, a company with a good reputation for outstanding work will win more contract bids than competitors with weaker reputations. Procore helps consistently deliver promises by ensuring your company hits all these marks.
Effective Project Management
Due to the multifaceted nature of construction projects having effective project management in place is vital to the success of the estimate process. Having reliable subcontractors lined up from the beginning of the process is essential as they need to be costed in. Guessing how much the various subcontractors will cost at this stage causes issues down the line. For example, when the plumber you hoped to use for the project isn’t available because your company contacted them too late, the alternative plumber may cost significantly more, causing you to go significantly over budget.
Presentation Of Estimate
How an estimate is presented to the client at the final stage of bidding is essential to have it considered in a strong position. Running through how the project performs in the cost-to-profit margin assures the client of their return on the project. Revisit your previous collaboration with the architect at this stage, as they will help fill out the report’s details. It also lets the client see first-hand how well your working relationship is for bringing the project to fruition together.
By ensuring your construction company opens communications with all involved parties immediately, has strong management in place, and makes the best use of the industry tool available, you’ll be in a solid position to create accurate estimates that win more bids.