A good cost estimate is accurate and protects all parties as it ensures that money is not lost, customers will not overpay, and a profit is made. In parts one, two, and three of our series, we focused a great deal on the importance of cost estimation, the qualities of a good estimator, levels of cost estimates, and common estimating techniques.
In this final section, our Nashville construction dispute lawyers would like to briefly discuss common estimating mistakes. Because preparing highly accurate estimates is critical, we will also touch a bit on utilizing estimating software versus human cost estimating.
Avoiding Common Estimating Mistakes
Following standard estimating procedures will help estimators avoid common estimation mistakes. For instance, a common mistake that estimators make is not understanding the project scope and its associated costs. This is often due to a failure to carefully read project documents. In addition to this, estimators make the following mistakes:
- Not visiting the site to assess site conditions
- Underestimating labor costs
- Not adjusting costs based on site conditions
- Making arbitrary adjustments without considering prior quantitative comparisons
- Mistakes when using cost estimating software application
- Failure to check or compare project figures to ensure the final result is accurate
If you are concerned about faulty estimations on your projects, it is time to seek out a highly-qualified estimator to employ a mistake-proof strategy. If you do not estimate from a risk perspective, you increase the likelihood that your projected costs will be inaccurate. This can lead to legal disputes in which you would need to consult a Nashville construction dispute lawyer to resolve.
Investing in Software for Cost Estimating
Using the proper software tools can make a construction estimator’s job more efficient. This, of course, is dependent on utilizing the proper tools. Software solutions do not have to be complicated. Basic features such as the takeoff tool, integrated costs databases, and calculations for estimates can streamline and accelerate the estimation process. Cost estimation software offers the ability to collaborate online and interface with other applications such as your accounting system or an engineer’s computer-aided design files.
Utilize Estimating Software and Human Cost Estimators
Today’s customer demands a certain level of responsiveness that can be easily accomplished with software applications. Although these applications can help you provide your customers with faster estimations, the cost estimator’s role is still crucial. Cost estimating software is not sufficient on its own, and additional checks and balances are necessary to ensure that quality results are produced. When cost estimator makes intelligent use of software, they can leverage the capability and speed of the software application to improve results.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.