The budget, scope, and timeline of a project are all important considerations when beginning construction work. To calculate these factors and achieve a successful project outcome, construction contractors, business owners, and other members of the team need precise cost information about every step of the process. If you're preparing a construction project, here's what you need to know about cost estimations before you get started.

What Is Construction Cost Estimation?

Construction cost estimating involves predicting how much it would cost to build a structure. Project owners or construction contractors use this information to determine the scope and budget allocations before moving forward with a project. Estimating costs ahead of time also helps prevent clients from overpaying and contractors from losing money. 

Construction estimators are generally responsible for making and revising the project estimates. However, large projects often have multiple cost estimates that both construction contractors and independent estimators have prepared. Then, contractors evaluate how the cost estimate will affect the project schedule and budget. The estimator will continuously estimate the project costs throughout the process and update the timeline accordingly. 

Why Is Cost Estimation Necessary?

Cost estimation keeps all parties on the same page regarding the construction project’s timeline and budget and provides transparency about the expectations and goals of the work. With a comprehensive construction estimate, the builder can also more precisely determine the project’s profit potential. This can help the project team make better decisions regarding the structure’s design, materials, and labor expenses. 

How Does Cost Estimation Work?

Prior to starting the cost estimation process, all involved parties must first agree on how the estimate is calculated. Then, the contractor will prepare a base estimate that includes all the forecasted costs, except for unforeseen future expenses. Next, they will develop a risk and contingency plan to plan and budget for unexpected costs that often arise.

Typically, another construction estimator will conduct a peer review to verify costs and quantities. When all the previous steps are completed, the estimate can be sent for approval by the project management team and client, allowing construction to begin.

If you're planning a new construction project, trust the contractors at BHI General Contracting in Fairfield, OH. With their help, you can look forward to an honest estimation process that lets you make the best possible project decisions. As one of the leading construction contractors in Ohio, Kentucky, and Indiana, they are committed to delivering quality and timely services whether you need commercial building, office building, or industrial general contractors. Discuss your project today with a friendly team member by calling (513) 330-5686, or visit their website to view their services.