Construction Expenses for Architects, Engineers, and Contractors

Many architects lack the expertise to accurately price construction projects. On the other hand, contractors and engineers possess the knowledge but often lack the time to dedicate to this task. In such cases, they may choose between outsourcing the estimation to specialized companies or undertaking it themselves, provided they possess a solid understanding of real-world construction processes.

This article aims to outline the key factors to consider when calculating construction costs for various professionals, including architects, engineers, and local contractors. Let’s delve into these considerations.

Embracing Digital Takeoffs

The initial step in estimating construction costs is deciding where to conduct the takeoffs. Regrettably, many contractors still resort to the time-consuming practice of printing plans and manually measuring items with a ruler, calculator, and pencil. This not only consumes unnecessary time but is also less accurate compared to digital takeoff methods.

Digital takeoff software automates the measurement of lengths and areas in project sections with just a few clicks. Hand-estimated projects may take up to three days, whereas digital estimates can be completed in eight hours or less, offering superior accuracy and efficiency.

Inviting Bids

When individuals require construction work and lack a direct contractor, they typically initiate a bidding process. They invite a select group of potential contractors to bid on the project, with the winning contractor offering the most appealing service along with an accurate estimate.

Considering Location-Based Pricing Factors

Construction pricing varies from one location to another. For instance, certain areas in the US have union regulations that drive labor costs above the national average. Various local laws, practices, and market conditions influence item pricing.

Consequently, contractors, engineers, or architects should base their cost estimates on the project’s zip code, tailoring them to the specific area for increased accuracy.

Accounting for Jobsite Variables

Numerous unforeseen factors can impact construction projects on-site, from challenging field conditions to limited equipment space. These variables are often unanticipated during the estimation process. Therefore, estimations should account for these unpredictable changes to the project’s scope of work. Examples of such jobsite factors include:

1. Field conditions.
2. Complexity variations.
3. Limited space for equipment.
4. The need for unexpected excavations within the building.

To mitigate the impact of these factors, estimators should incorporate cushions in their pricing to accommodate potential issues.

Determining Realistic Overhead and Profit

Construction projects frequently encounter changes and disputes, making it nearly impossible to achieve a flawless, issue-free outcome. Therefore, estimators must not only provide pricing for what’s expected but also for what might arise during the project’s execution. Understanding the job site and the people involved, and factoring in contingencies, are essential aspects of creating a robust estimate.

Budgeting for Incomplete Plans

Preliminary estimates serve as budgets for projects lacking finalized plans. These estimates often provide ballpark figures due to the project’s early stage, making it challenging to predict precise costs. However, by utilizing location-specific pricing databases and preliminary blueprints, estimators can derive surprisingly accurate estimates.

The process involves using scaled drawings to gain an initial understanding of the project’s key aspects, such as grade beams, square footage, or wall heights. Takeoffs following the construction process are then performed and matched with a pricing database to generate predictable costs.

For instance, residential projects typically cost around $150 per square foot, while commercial projects average around $175 per square foot. These figures serve as useful benchmarks for estimating project costs.

Estimation at Different Project Stages

Estimating construction costs can vary depending on the project’s development phase. While early-stage projects may yield rough estimates with significant room for change, projects in advanced design development stages are easier to price because they clearly define the project’s components. In such cases, estimators can rely on digital takeoff software and pricing databases to calculate accurate costs.

In Conclusion

Estimating construction costs is a crucial aspect of ensuring the successful execution of construction projects. If you require professional construction estimates, please do not hesitate to contact us. We provide estimates for construction professionals across the USA. Explore our featured estimates for further information.