1 – Review the Project Scope and Specifics Whether it’s your first time bidding on a construction project or if you’ve done that several times before learning the tools and tricks will help you to make accurate construction estimates.
BUILDING ESTIMATE FACTORS HOW TO
Want to know more? Don’t worry we’ve made this handy guide about how to do a construction estimate so you can convert bids and win more projects. You need to bid low enough to compete with other companies offering the services and high enough to include labor, material, equipment, and indirect costs of doing business – plus profit margins. You just have to balance both the upper and lower limits. Well, the solution is not simple or easily achievable. If you aim too high the bid will go to someone else but bidding too low will cost you the profit margin. They’ll exclusively decide whether you’re going to win or lose a profit.ĭoing your estimate from scratch is a whole lot of work especially when you’re after accuracy. However, your survival as a construction business lies heavily with the accuracy of your estimates and quotes.
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Determining the cost estimate requires you to consider several factors including market dynamics.
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By the same token, their estimate is also a bit complex and requires more prep work. How to Do a Construction Estimate-Step by Step GuideĬonstruction activities are complicated, unique in nature, and are labor-intensive.