5 ways to estimate the accurate construction cost

Different construction projects, regardless of their duration, design, area, size, requires essential budgeting for the right start.

Remember, the primary goal is not to exceed the budget and get the project delivered on time.

FINANCE well in advance- To know the cost estimation for construction, firstly, budget your project according to the feasibility and achievability. Make sure to execute it well on time.

‘’A clear objective of budget helps a complicated process of construction turn into a better to-do-plan.’’

Who does not like a well planned accurate construction estimation?

✔It helps you to keep a check on spending more than budget.

✔It allows your constructor to buy construction material in your approved budget.

✔It helps to choose the best construction material in the budget.

Why is material estimation mandatory?

The purpose of Construction Material Estimation

• Estimation helps to create a detailed cost explanation that is involved in the construction project.

• It gives you a rough but concrete idea about the cost and planning needed to finish the project efficiently.

• The possibility of budget quotes can overrun the actual budget of the project. Thus, it is crucial to have estimation done in advance.

• Keep the budget flexible to the point that you can afford it without burden. Cap that adjustable budget point.

• The online cost estimator can help you in quotes either above or below the actual budget because it ignores the external factors like- Labor cost, material transportation cost, location, duration, special machinery and many others.

5 easy ways to estimate construction cost

1. The Unit Pricing Calculation

As its name suggests, unit pricing is the process of knowing the base fare/cost of each material.

E.g., You require TMT Bars for the construction now before moving on to how many you need. You will try to know the base fare of each TMT bar in the market. It can vary based on different brands. The bottom line is that you will get a clear idea about the amount of each unit.

Pro Tip: Always add labour and transportation cost separately.

This will help you to know the extra costs over the material you are interested in buying.

• Once you have an idea of base fare, you can ask for discounts and choose the best quality materials.

To select the basic but mandatory material like TMT BARS for solid foundation and construction

THESE LISTS WILL HELP YOU TO GET BEST TMT BARS ON YOUR BUDGET

Why should you use this method?

✔ To get better accuracy of cost for each construction material.

✔ This method will help you to direct and efficiently allocate project needs.

✔ This will help you to strategize your purchase of each material separately.

2. Consider Labour Rates

In many cases, an estimator eliminates the most critical aspect of construction cost.

Construction cost does not only mean raw materials and transportation cost. It also includes the labour wages.

Look out for

✔Government-approved labour wages

✔ Work experience and old projects

✔Skilled workers

✔Add the approximate wage cost

✔Confirm if they are working on a project basis or daily wages.

3. Model Development Approach

According to the public residential building data from Korea, for the model development, Reinforced concrete (RC) work is selected because it occupies over 40% of the total cost of building construction.

The development process is divided into the following six steps:

(1) Framework selection

(2) Estimation method selection

(3) Item simplification

(4) Influence factor selection

(5) Modified parameter making

(6) Database establishment.

4. Considering Quantity Takeoff

The standard human calculation errors are unavoidable and are bound to happen. However, by taking extra care of certain things, we can reduce the error %.

• Like using appropriate units (e.g., square feet, cubic yards, etc.).

The most common errors experienced during quantity

takeoff are

1. Arithmetic: Errors, in addition, subtraction, and multiplication

2. Transposition: Mistakes in copying or transferring figures, dimensions,

or quantities

3. Errors of omission: Overlooking items called for or required to

accomplish the work

4. Poor reference: Scaling drawings rather than using the dimensions

indicated

5. Unrealistic waste or loss factor.

5. Regulatory Requirement

Projects like schools or hospitals require special grant and permission. These regulatory requirements establish minimum standards to be achieved in the construction of buildings.

Thus, it is advised to get clearance by making a series of approved documents that guide a wide range of reference documents.

The delay in this subject directly impacts the budget of the project.

Consider being on time= Saving money.

The value of accuracy and estimates are essential before a construction project

Why to analyse budget before construction in India?

• Budgeting provides a fair overview of the completion of the project on time.

• A feasible budget also should be a flexible budget.

• Approval of budget gives an easy hand on analyzing whether the funding is sufficient to complete the construction project from start to finish.

• An accurate and well-researched construction estimate helps to finish a project on time.

• It is also crucial that clients and other stakeholders in construction projects understand that estimates are subject to change.

• Vital factors for a project to be successful are by selecting the best quality of construction materials.

Bricks, Sand, Steel Bar, Cement etc., are the components with which there cannot be any compromise. It can lead to poor construction followed by fatal accidents in future. Therefore, research and analysis are essential before selecting the components.

Frequently Asked Questions (FAQs)

Q: Should I buy or build a house of my own?

A: To be accurate, it depends. There are pros and cons to each.

Consider the following factors:

Customization options

Costs

Maintenance

Time

Location

Sustainability

Investment

Quality

If you’re looking for high-quality materials to be used, a new build is for you with a maximum level of customization. When you move into an existing home, you see what you get on the surface of things.

An investment in the building can be considered a worthwhile investment. However, there can be a ''Surprise'' cost that can potentially increase the home rates.

Q: How to estimate an average price per square foot?

A: It depends. Your location, locality, ease of commute, market price, and geographical area are few factors that decide the prices. Prices are subjective to different City, towns, City outskirts.

However, research is the key to know the actual estimate and for a fair price.

Q: What are the critical components of a new build contract?

A: Some key components include realistic allowances if the land is included in the square footage costs, liability insurance costs, and more.

Q: How can custom plans affect the cost?

A: There can be many unknown factors while you are seeking out custom plans.

Custom plans can match your lifestyles and budget.

The builder is likely to build in more contingency or choose a time and materials contract to provide transparency around costs incurred, plus their management, overhead, and profit.

In customized plans, you can keep the quality check of materials and keep an eye on the expenses.

Checkout- 7 Essential things we overlook before construction

How to check the quality of TMT bars at home?

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