Construction estimating guide: How to make a construction estimate

When you’re in the construction business, knowing how to create an accurate estimate is crucial. A good estimate helps you win jobs and keeps your project on track. This guide will walk you through the basics of making a construction estimate, step by step.

What is a construction estimate?

A construction estimation is a detailed breakdown of the costs involved in completing a construction project. It includes everything from materials and labor to equipment and permits. The goal is to provide a clear picture of what the project will cost and help you plan accordingly.

Steps to create a construction estimate

Gather project details

Before you start, you need to collect all the necessary information about the project. This includes:

• Project plans and blueprints

• Specifications

• Client requirements

• Site conditions

Having this information will help you understand the scope of work and avoid missing important details.

List all materials

Make a list of all the materials needed for the project. Include everything, even the small items like nails and screws. Break down the materials by:

• Type (e.g., wood, concrete, steel)

• Quantity needed

• Unit cost

This will give you a good idea of the material costs.

Estimate labor costs

Labor is a significant part of any construction estimate. To calculate labor costs, you need to consider:

• Number of workers needed

• Hours required to complete the job

• Hourly wage rates

Remember to factor in overtime, if applicable, and any additional costs like benefits or insurance.

Include equipment and tools

Some projects require special equipment or tools. Make sure to include the cost of:

• Renting or purchasing equipment

• Operating costs (fuel, maintenance)

• Tool costs

If you already own the equipment, consider any wear and tear costs.

Add subcontractor costs

If you’re hiring subcontractors for specific tasks (e.g., plumbing, electrical), get quotes from them and add those costs to your estimate. Make sure to review their bids carefully to ensure they cover everything needed. 

Factor in permits and fees

Every construction project needs permits and may have other fees, such as inspections. Be sure to include:

• Permit application fees

• Inspection fees

• Other legal or regulatory costs

Check with your local building department to get an accurate estimate of these fees.

Calculate contingency

It’s always a good idea to add a contingency to your estimate or outsurce to the esimating company. This is a buffer for unexpected costs that might arise during the project. A common practice is to add 5-10% of the total estimate as a contingency.

Review and finalize your estimate

Once you’ve gathered all the information, review your estimate carefully. Double-check your calculations and make sure you haven’t missed anything. It’s also a good idea to compare your estimate with past projects to ensure accuracy.

Tips for making accurate estimates

• Use up-to-date prices: Material and labor costs can change, so always use the most current prices.

• Be detailed: The more detailed your estimate, the less room there is for errors.

• Consult with experts: If you’re unsure about any part of the estimate, don’t hesitate to consult with specialists or colleagues.

• Keep records: Save your estimates and notes for future reference. They can help you with future projects and make your estimates more accurate over time.

Conclusion

Creating a construction estimate can be complicated if you are not aware with this.. By following these steps and being thorough, you can create accurate estimates that help you win jobs and keep your projects on budget. Or you can hire a best construction estimation company that can handle the entire estimation for you.