When it comes to providing your customers with construction project estimates, our Ft. Myers contractor lawyers know that as you produce more accurate estimates for projects over time, the more confident you will become in your estimating. This will help you attract more customers and make your business more profitable. In section one, we shared a few dos and don’ts of estimating. In this final section, we will share some practical tips for getting more accurate estimates.
Start With an Accurate Set of Plans
Never attempt a construction estimate without an accurate set of plans that you understand. Without these, it is impossible to know if the customer’s desires match your understanding of what they want. If you do not read and understand the plans it is highly likely that your concept of the job will be different from the customer’s concept of the job.
Get Help in Areas Where You Lack Expertise
It is easy to produce more accurate estimates on portions of the project where you have the most experience. However, you should rely on subcontractors or consultants for help in those areas where you lack expertise.
Identify Risk and Factor in Their Costs
No construction project will flow smoothly 100 percent of the time. Smart project planning involves factoring in all costs, even the unforeseeable. Identifying risks and factoring in their costs beforehand can help you avoid issues that could potentially derail your project. This is one area where contractors may find themselves seeking a Ft. Myers contractor attorney to handle a resulting legal dispute.
Determine Accurate Labor Rates
Determining labor rates is essential for accurate estimating. Estimators can start by ensuring that workers are filling out time cards properly. They also factor in taxes, workers’ compensation, liability insurance, and other important costs to calculate an accurate labor burden rate. They understand that different crew rates are needed based on what a job entails. For instance, a more complex job may require more experienced crews; therefore, the crew bid rate will reflect this.
Understand Price Fluctuations
Construction prices fluctuate. In fact, material prices have been steadily increasing during 2018. Pay close attention to factors that can affect pricing when estimating costs. A price decrease depends on a number of factors including the demand of a material or product, delivery challenges, the speed at which the material is needed, and if there are seasonal limitations that affect logistics and adjustments to the price.
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.