Accurate construction

Construction cost estimating is the process of forecasting the total expenses required to complete a building project from start to finish. It’s a meticulous evaluation of all potential costs to arrive at an accurate predicted project expenditure.

Construction project costs are broadly categorized into:

Direct Costs: Expenses directly used in the physical construction. This includes:

• Materials: Raw building supplies (e.g., concrete, steel, lumber).
• Labor: Wages and benefits for on-site workers.
• Equipment: Costs for machinery, tools, fuel, and operators.
• Subcontractors: Payments to specialized outsourced trades (e.g., plumbing, electrical).

Indirect Costs (Overhead): Necessary expenses not directly tied to physical construction. This includes:

• Project Overhead: Costs specific to a project (e.g., site supervision, permits, temporary facilities).
• General & Administrative (G&A) Overhead: Costs for the company’s overall operation (e.g., office rent, administrative staff).
• Contingency: An allowance for unexpected costs, scope changes, or unforeseen issues.
• Profit Margin: The amount added to cover the contractor’s profit and business sustainability.

Whether you’re into a Stipulated sum contract or GMP contract or Cost-Plus fee contract; construction cost estimating is about knowing what a project should cost, while pricing is about deciding what to charge for it, taking into account internal costs, market dynamics, and strategic business goals. Accurate estimation is the backbone of effective pricing, ensuring both competitiveness and profitability.

Whether you need a budget for your next job or bid estimate, let our estimators help you through our historical pricing database gathered over the years coupled with industry standard pricing guidance by RS Means. Our Best Value service is No Brainer, Give it a shot!