Integration of digital technology, automation and big data in the operations of a construction project has given rise to the need for estimating services, to help project managers get realistic estimates to set development goals. Digital transformation has cut down costs by 4-6% while improving the productivity of the construction workers by 14-15%. To stay ahead of the competition, many construction managers have started to outsource ancillary departments to attain a critical level of flexibility.

One such area of beneficial outsourcing is the cost estimation department. Hiring an estimation firm for construction of any size, from commercial buildings to single-family homes can present a range of benefits that can substantially influence the workflow and boost the overall productivity. Professional studies have shown that the final estimated building costs can be up to 8% higher than the initial estimates, creating a wide margin for error. Employing a full-time estimating department, in this case, fails to seem a viable investment. Outsourcing estimating services gives project managers the flexibility of receiving reliable estimates while saving a lot of money spent on extra staff.

Benefits of construction estimates

Win more bids
Construction estimates along with project management software can help project managers and subcontractors make better decisions and place smarter bids, via market analytics and previous performance report analysis. Reliable estimates also enable managers to track development and be better prepared to face risks.

Eliminate overhead that cuts into profit
Outsourcing cost estimating eliminates the need to keep in-house and estimating teams who are often paid to sit idle, when construction projects are under development. An estimating firm will tend to your specific project and accept payment for the same. This saves a lot of money as investors have to pay only for the services they actively use.

Increase profit margins
Cost estimation not only saves money by reducing overhead but also influences cost-savings by delivering accurate estimates that ensure that the projects are completed within budget. This increases the profit margin of the project and can lead to better opportunities.

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