Factors Affecting the Estimate of Building Construction Costs
Estimate of Building Construction means to calculate the cost of a project from start to finish. When you are starting a construction project, it is helpful to devise a financial plan first. Cost estimation involves carefully including every little cost and coming up with a total budget. It includes; but is not limited to
- Masonry
- Lumber
- Metal
- MEP Components (Mechanical, Electrical and Plumbing)
- Concrete
- Drywall
- Paint
- Flooring and Roofing
Who is a Building Estimator?
A Building Estimator is a professional who is trained to carry out cost calculations. They create accurate, customized budget plans for their clients. Clients may include
- Contractors
- Subcontractors
- Homeowners
- Property developed
- Restorationists
- Architects
- Vendors
Estimators have ample knowledge about the construction process as well as cost estimation. Most cost-estimating companies have incorporated the use of cost-estimating software to increase accuracy. SMA Estimating LLC is one of the best building cost estimation agencies that uses several software such as
- Planswift
- Stack
- Trimble
- Con Est
- FastPipe
- FastDuct
- RS Means
- Quest Estimating
- On Screen Takeoff
- Xactimate
- RS Means
Elements Impacting Estimate of Building Construction Cost
The cost estimate of building construction varies from project to project. Some projects are expensive while others are relatively cheaper. Let’s take a look at what are some of the cost-affecting factors.
1) Size and Complexity of Construction Project
The size of the project is an obvious factor that impacts the estimated cost. The greater the size, the more will be the cost. Smaller residential projects are much cheaper than large commercial or industrial projects. Apart from the size, the complexity of the building also affects the cost. Some projects are harder to deal with. It could mean that they have a detailed architectural layout or there could be several risk factors. This will increase the cost.
2) Material Preferences
Estimates of building construction largely depend upon the type of material selected. Material prices can vary from low-end to high-end quality of material. While cheaper material is going to cost less, it may not be the best choice for the project. Using cheap materials increases maintenance costs which is not good for the long run. It is important to balance material price and quality.
3) Labor Cost
Labour cost or worker wages has a drastic effect on the total budget. Labor costs can be unpredictable in the estimate of building construction It depends upon
- The scale of the project
- Skill level of the labour
- Indirect expenses of labour such as benefits, insurance etc.
- Amount of workers needed
It is important to note that some labour charges by a flat rate while some charge on the basis of hours. So the time taken to complete the project also affects the cost.
4) Building Regulations
Some people may be surprised to learn that building codes and regulations also affect the estimate of building construction costs. Each area or building has its own set of rules for construction. It is important to abide by those rules to avoid any legal problems.
Let’s look at an example to understand this. Some buildings may require you to install fireproof drywall for safety purposes. So there is no choice but to pick this type of drywall.
5) Site Condition
Construction sites need to be made construction-friendly through excavation, grading, clearing etc. The current condition of the construction location may increase or decrease the cost. Some land is tougher to deal with so they need to get smoothen out first. Site-clearing work means an increase in labour, equipment and material costs.
6) Market Conditions
Anyone who’s remotely familiar with the construction industry knows that the construction market is constantly fluctuating. Prices are increasing or dropping unpredictably. So the current prices of material and labor costs also impact the cost prediction. For an accurate estimate, it is important to stay up to date with price changes.
Advantages of Building Estimation
Although Building Estimation may seem like a difficult task it’s not without its perks.
- It streamlines the construction process
- It helps to prevent any unnecessary expenses
- It saves time and money both
- The allocation of resources becomes more practical
- It aids decision making
- Cost estimation increases coordination among project managers and stakeholders
- It can help contractors win bids
Final Words
An estimate of building construction may be difficult for a non-professional. Especially if they are new to the construction industry. Cost estimation is better left to professionals as they can yield accurate results in a short amount of time. There are many different factors involved in cost estimation. These internal and external factors are hard to predict if one doesn’t know what they are doing. So getting help from a professional is the best course of action.