Commercial construction estimates are important because they help you predict the costs of completing a construction project. They also can be an indication of quality. Read this article for more information about commercial construction estimates.
Types of Commercial Construction Estimates
Commercial construction estimates are generally used in three situations. First, they help you determine whether a project is feasible. Second, they help you determine costs and evaluate bids. Third, they track actual costs to ensure accuracy during the project’s life cycle.
Industry Standard Commercial Construction Estimating Software
Industry standard commercial construction estimating software programs are generally less expensive than those designed for individual contractors and, therefore, more accessible for small businesses. Industry-standard programs include CostCertified, which gets used for custom design and remodeling for general commercial construction.
Getting Commercial Construction Estimates
You can get commercial construction estimates from two sources, general contractors and subcontractors, or you can figure them yourself using industry-standard cost data available online or in books.
Getting Multiple Bids
You may need to build a construction estimating tool to get multiple bids. It can help you estimate costs, find quality subcontractors and estimate the cost of materials.
Prices vs. Costs
Costs are the actual dollar amounts it takes to complete a project and is often higher than what the contractor initially quotes you. Similarly, the price quoted by a contractor is simply that amount plus any applicable fees or surcharges. It is important to remember that all numbers posted online are estimates.
Uses of Commercial Construction Estimates
Construction estimates get used to determine the amount of funding needed for construction projects. They also help contractors design their projects and prepare a bid package. The cost estimate gets included in the bid package submitted to the general contractor, who, in turn, submits it to the owner or subcontractor.
Contractor’s Commercial Construction Estimates
Commercial construction estimates help contractors make quick decisions on the bids they receive from subcontractors. They also help them determine what design changes should get made to lower costs or improve quality. In addition, they are used to determine whether to accept or reject a subcontractor’s bid.
Subcontractor’s Commercial Construction Estimates
Commercial construction estimates are prepared by subcontractors who must have them available for the general contractors with whom they work. The information in estimates is confidential; therefore, no reference may be made to the trade or name of the person giving the estimate or any other person or firm referred to in it unless authorized by both parties.
Commercial Construction Estimates and General Bids
Commercial construction estimates should align with the general bid. If it is lower than the available bid, the contractor may question if it is too low. If it is higher than the general bid, the contractor may question why they were not for a higher bid.
Preparing Commercial Construction Estimates
To make a good commercial construction estimate, you must clearly understand what you want to achieve and how. You need to know your business goals, where you want to be in one year, five years and ten years and how you will get there. Having a clear vision should help you prepare accurate estimates.
How to Prepare Commercial Construction Estimates
Commercial construction estimates are prepared using various tools, including industry-standard cost data, templates, and software programs. They are generally prepared by a project manager, although the owner may prepare certain estimates, such as annual operating costs.
Commercial Construction Estimating Software
Commercial construction estimating software is a computer-based tool usually used by contractors. Computer-based tools allow you to use industry-standard templates, industry standard cost data and create your templates for each project.
Areas Where Commercial Construction Estimates Are Used
Commercial construction estimates are used in residential, commercial and industrial areas. They are for individuals or groups of related projects where it is necessary to have a ready reference of prices and costs.
Commercial construction estimates are the most important tools for determining the cost of building a house. They give you all the information you need to make decisions about your project, whether it is to build a house or extend your business.
