Can you describe what goes into creating an initial estimate for a construction project?

An early stage estimate of the project cost differs from a construction budget, as it relies on the contractor’s past experience, and involves some art and some science. It allows the Owner an opportunity to organize funding sources and plan actual expenditures in advance.

When information and plans may not be complete, the estimator must blend known data, such as a building’s size and scope, with other details based on unit costs, assumptions, historical data, and best judgment. As the design is refined, the final budget is based more on solid information.

When creating a preliminary estimate, the estimator first must assess the level of detail of the plans to determine the best method of approaching the estimate. He’ll then assess the site and existing conditions, considering overhead power lines, presence of hazardous materials, site grades, etc. that will require additional scope and labor.

Estimators next must prepare accurate quantity take-offs based on the plans, determining the materials needed and factoring seasonal effects and price trends. The estimator will then extrapolate the associated labor needs, wage rates, and equipment needed to install. Finally, general project requirements such as permitting, insurance and design fees are also incorporated.

Resources

Consolidated Construction Co. Inc. and Maple Creek Construction Join Forces to Expand Services and Increase Geographic Reach
August 17, 2021
Consolidated Construction MRS Adaptive Reuse Project Honored with Gold “Projects of Distinction” Construction Excellence Award from ABC
April 5, 2021
Consolidated Construction Johnson Creek Senior Living Project Honored with Silver “Projects of Distinction” Construction Excellence Awards from ABC
April 5, 2021
Avoid Excessive Costs by Planning for “Winter Conditions”
August 31, 2020
If Speed to Market Important, Think Design-Build Construction!
August 5, 2020
Why should I start planning my Spring building project now, and what goes into creating an initial cost estimate?
June 26, 2020
Why Should Contractor Safety be Important to a Project Owner?
April 28, 2020
10 Things We Learned from the Hospitality Industry that apply to Senior Living Facilities
November 14, 2019
Working with Communities to Identify Needs and Build Cost-Effective Educational Solutions
October 15, 2019
How Interior Branding Can Benefit Your Business
September 19, 2019
Understand Soil Conditions Before You Build
April 29, 2019

Recent Comments

    Past News, Events, and Blog Posts