Making the right estimate is one of the most important tasks in the construction business and mistakes are very common which might lead into making very small amount of profits or even make a loss on a project. It has been seen that most of the mistakes happen on a regular basis and this often leads to not getting the job. For instance, if you make a large bid then the client might move on to the other construction company. Therefore it is very important to make the right bid in order to make a substantial amount in profit and also to maintain the competitiveness of the total costing of the project as well. In this section we are going to let you know about all the common mistakes that most construction firms make and all you need to do is to avoid them.

The estimating consultant must take everything into consideration

The most common mistake while drawing out an estimate plan for the construction project are the arithmetic errors. This means punching in the right digits is essential in making a correct estimate. Using a high end calculator which gives you the option to go back and check is a great option but at the same time it can be a very tedious and confusing job as well. While making the estimate you must take into consideration about the number of labors you are going to require, the number of hours those labors need to put in, the materials needed, the resources needed and all the licenses needed to finish the job. All this could easily make you very confused and you could also mix up things as well. This is the reason why most of the construction companies are switching to software programs to avoid all these.

Estimating service is a very important factor

The second most common mistake that happens while making an estimate is measuring the right timeline and deadline of the project. A small error here can put the entire project at risk and it would be very hard to make a profit then and also to finish the job on time. This can be avoided by making small targets or milestones. An error in the measurement can make the estimate to be either very high or very low and both of them could be catastrophic. A very high budget would drive the client away and a very low budget means there is a high chance that you will be making a loss. Also, double check everything before you show the estimate to the client.

Confirm the labor rates

It is very important to know that the labor rates varies from state to state and also depends on the location of the construction site. The labor costs are the third most common errors that the construction firms make while making an estimate. So, it is very important to confirm the labor rates before starting the estimation process. The best way to do this is to contact the union office and get the right rates of the labor for the designated place. Also, keep in mind about the overtime and the night rates as well when making the estimate as this might cut your profit as you would have to pay more for them also.

There are many estimating service software programs available in the market to choose from depending on your needs. You must hire an estimating consultant who must be experienced to work on such software. Most of these software programs are very easy to use and it does not take a long time to learn all the features included in the software.