The Complexities of Labor Cost Estimation

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Construction estimation is a complex task, even if it doesn’t seem like it at first. Although preparing a basic plan for a construction project may follow a particular structure — the cost estimation for any project has to be prepared on such a detailed level, that no one method or structure works for every project.

Every new plan brings new requirements, design, region-specific requirements and complexities that make it different from the ones you may have done before. That means that there are multiple steps that your residential and commercial project estimation services will go through before presenting the final report to you.

Understanding the Plan and Manual

Before any estimates are made or meetings are had, the first thing an estimation service will do is look at the plans and the manuals. When you start looking at the proposal guidelines for a bid, you’ll probably receive a package of project documents which will include these plans.

The architectural, structural, mechanical and electrical drawings are all essential for your chosen estimation team to be able to create a comprehensive report. The estimators will work from the top down to create an organized system through which they’ll look over all the various kinds of expenses that will apply to this project. In this age, software is usually used as a tool at this stage.

Collaborations with Stakeholders

Getting the right kind of localized cost estimations means knowing what the local vendors and suppliers are selling material at. Moreover, if you’re going to be outsourcing labor, that’s also a cost that will have to region specific.

This means meetings or quotations taken from suppliers and labor companies near where you are. They may also consult with you to get a feel for how you approach a construction project, since your methodology can alter time-sensitive and labor costs.

Get the Calculations Done

The next step is to get the calculations done. This is where the software steps back in to supplement the work the team members are doing. From flooring estimating services to lumber takeoffs — every single expenditure is evaluated, estimated and calculated.

This usually also involves creating profit margins, adjusting for unforeseen event cushions and making sure every last detail is accounted for. This includes rental equipment, estimations for special requirements and ensuring that the rates mentioned are up to date.

Cross-Checking for Accuracy

The last step here is usually cross-checking. Since this process is so involved and takes up a lot of time, the best way to be sure everything is done properly is to have another member of the time review the report generated.

Even though this extra step can seem unnecessary, the only way to be sure that no mistakes or oversights were made.

However, each estimating service may have their own process, which is definitely something you should discuss with whomever you choose to hire!

Isabelle J. is an online tutor. She has been an IT instructor for the past few years. Being a certified IT trainer herself, she encourages people to learn top IT skills and provides tips on finding high-end jobs in the industry.