Don’t let common estimating mistakes cause you to lose out on profit for a job.
Every construction manager has been there: you make a simple estimating mistake and, suddenly, you are
facing a loss of profit from a job. Poor estimation practices are the most common reason for losing profit on a job because estimates are one of the most important things to consider when determining if a job will be profitable or not. Errors can be incredibly costly, but the good news is that, with the right construction management software, you can avoid many of the most common estimating mistakes. The following is a list of the most common estimating mistakes that construction management software can help you avoid:
Mistake #1. Not considering every angle.
While it’s always smart to take a more top-level approach to any project, you shouldn’t overlook the details. Specific line items can really start to add up. It’s also important to take advantage of the expertise of your team as much as possible. For example, if the majority of your experience lies in materials handling and you don’t have a lot of experience with equipment costs, utilize someone on your team who does have experience with equipment costs before putting your estimate together. By considering the expertise and advice of your team, you can predict costs much more precisely.
Mistake #2. Not including labor costs.
There are so many factors when determining an estimate for a project, including materials and permits. It’s all too easy to get lost in the weeds with everything else that you need to include in your estimate that you forget about labor costs. Although you won’t get anywhere without the labor, you may be surprised to learn that labor costs are one of the most common costs left out of estimates. There are many factors that make the cost of labor difficult to predict, so it’s important to be as detailed as possible when you consider which kinds of workers you are likely to need, as well as the average costs of hiring those workers.
Mistake #3. Not including inspections and permits.
Inspections and permits are important aspects of any job, and it’s important not to overlook the costs of them when putting together your estimate. Contact your local municipality to find out about any necessary documentation or permits you may need for the job, and make sure you also find out about the costs associated with them. It’s also essential to take building codes and other regulations into account so that you can avoid fines while completing the job.
Mistake #4. Not staying organizing.
With so many moving parts and things to consider, it’s essential to stay organized when coming up with an estimate for a project, particularly if you are overseeing multiple projects. The right software can keep everything you need in one, easy-to-find place, making it easier to stay organized and provide an accurate estimate for the job.
Estimation mistakes can be costly, but Trimble construction software from SITECH Rocky Mountain can help you avoid the most common estimating mistakes. Visit us online to learn how we can help you find the right software in Colorado, New Mexico and El Paso, Texas.