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1
Know the scope
2
Use reliable data
Be the first to add your personal experience
3
Choose the right method
4
Involve the experts
5
Review and revise
6
Learn from experience
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7
Here’s what else to consider
Project estimation is a crucial skill for any construction professional, as it affects the budget, timeline, and quality of the work. However, estimating can also be challenging, as there are many factors and uncertainties that can affect the final outcome. How can you ensure your project estimation is accurate and realistic? Here are some tips to help you improve your estimation skills and avoid common pitfalls.
Key takeaways from this article
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Involve the experts:
Bringing in specialists who understand complex systems, like HVAC control wiring, can prevent underestimation. These pros can identify potential issues and provide accurate man-hour estimates for these tricky tasks.
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Use the right tools:
Carefully selecting and fully understanding estimation software can make a big difference. The right tools streamline the process, reduce errors, and help you avoid the pressure that leads to rushed, inaccurate estimates.
This summary is powered by AI and these experts
- Josh Luebker I Solve Anxiety and Uncertainty For…
- Blessing Fadumila MNIQS CEC Cost Consultant | Estimator | Quantity…
1 Know the scope
The first step to accurate estimation is to have a clear and detailed understanding of the project scope. This means defining the goals, objectives, deliverables, specifications, and assumptions of the project. You should also identify any risks, constraints, dependencies, and changes that may affect the scope. Having a well-defined scope will help you avoid underestimating or overestimating the work required, and allow you to communicate effectively with the stakeholders and the team.
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- Josh Luebker I Solve Anxiety and Uncertainty For Construction Business Owners Through Construction Accounting, Improved Cash Flow, WIP Reporting, and Operations Consulting. Specializing in Subcontractors.
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In my experience in electrical construction, you always run into areas that general contractors assume are one specialty but are a gray area for trades. An example of this is control wiring for HVAC. One would think wiring is the electrical contractor and the rest is the HVAC. However, every HVAC unit has a special wiring diagram that isn’t on the bid documents and can be extremely complicated and take 10x the man hours than what’s shown on the drawings. Best practice is to either have the electrical team put a per unit budget price to help cover cost OR have the mechanical team cover wiring with the electrical team having a single point connection (disconnect) that the mechanical team ties into.
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Like Celebrate Support Love Insightful Funny 15 - Blessing Fadumila MNIQS CEC Cost Consultant | Estimator | Quantity surveyor | Project Coordinator
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With all that was highlighted, Estimators need to be careful with the software they use. Estimators should ensure they understand the software well and be sure to use the right software propertiesAlso, bosses should stop putting estimators under pressure because this sometimes makes them not do due diligence during estimating thereby resulting in errors.
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2 Use reliable data
The second step to accurate estimation is to use reliable and relevant data to support your calculations. This means gathering historical data from similar projects, such as costs, durations, productivity rates, and quality standards. You should also use industry benchmarks, standards, and guidelines to validate your data and adjust for inflation, location, and market conditions. Using reliable data will help you avoid guessing or relying on intuition, and increase your confidence and credibility.
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3 Choose the right method
The third step to accurate estimation is to choose the right method for your project. There are different methods of estimation, such as parametric, analogous, bottom-up, and top-down, and each has its advantages and disadvantages. You should consider the size, complexity, and uncertainty of the project, as well as the availability and accuracy of the data, to select the most appropriate method. You should also use more than one method to cross-check and verify your estimates, and account for contingencies and uncertainties.
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- Josh Luebker I Solve Anxiety and Uncertainty For Construction Business Owners Through Construction Accounting, Improved Cash Flow, WIP Reporting, and Operations Consulting. Specializing in Subcontractors.
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In my experience, a good rule of thumb for accuracy is price things out for 3-5 quotes if the price is over $2,000. 3 if it’s around $2,000 and increase as the projects go up. Updating commodity pricing in your estimating software as well as NECA rates helps you stay competitive in the market as well.
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4 Involve the experts
The fourth step to accurate estimation is to involve the experts who have the knowledge and experience to provide valuable input and feedback. This means consulting with the project manager, the team members, the subcontractors, the suppliers, the clients, and any other relevant stakeholders. You should also use tools and software that can help you automate, streamline, and improve your estimation process. Involving the experts will help you avoid errors, omissions, and biases, and ensure your estimates are realistic and feasible.
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- Hadeel Dabbagh I help construction estimators get more accurate estimates done in less than half the time
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Involving experts is critical, as well as using a common language and process around estimating that all stakeholders can get behind to facilitate collaboration and enable business results. Estimators cannot estimate effectively in a vacuum. They need to estimate in the way that projects are expected to be carried out (align with the field), price in the way that projects will be paid (align with business), report in the way that projects will be tracked (align with finance/cost control).
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One of the backbone of getting an accurate estimate is to actively collaborate with experts in the field, they provide raw data, and these data are expanded with the available tools to provide realistic estimates.
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5 Review and revise
The fifth step to accurate estimation is to review and revise your estimates regularly and systematically. This means checking your estimates for accuracy, completeness, consistency, and clarity. You should also compare your estimates with the actual performance and results of the project, and identify any variances, gaps, or issues. You should also update your estimates as the project progresses and changes occur, and document any changes and reasons. Reviewing and revising your estimates will help you avoid surprises, conflicts, and disputes, and improve your estimation skills and practices.
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- Temitayo Daramola Quantity Surveyor and Project Manager
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In my own opinion, experience has shown no one is perfect, it is imperative to always have a third-eye review of work done. Usually, this could be done by a senior manager or another professional at the same level with better experience. The degree of perfection could be determined by having several checks and re-evaluations on parameters which can eventually affect the results at the end of the day.
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6 Learn from experience
The sixth step to accurate estimation is to learn from experience and apply the lessons learned to your future projects. This means collecting and analyzing the data and feedback from your completed projects, and identifying what worked well and what did not. You should also seek feedback from your peers, managers, clients, and mentors, and ask for suggestions and recommendations. You should also keep track of your estimation performance and results, and set goals and action plans to improve your estimation skills and processes. Learning from experience will help you avoid repeating the same mistakes, and enhance your estimation quality and efficiency.
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7 Here’s what else to consider
This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?
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- Hadeel Dabbagh I help construction estimators get more accurate estimates done in less than half the time
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It's important to differentiate clearly between cost and price in estimates. Cost estimating reflects best effort analysis and assumptions about what the project costs could be, while pricing is a business decision that may deviate (sometimes significantly) from the estimate for various reasons. Despite best intentions of estimators and stakeholders, allowing these numbers to blend together in estimates gets in the way of accuracy, visibility, and good business decisions.
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