Construction estimation errors can add up and take a large chunk out of a company’s expected revenue. When taking the time to learn a process, mistakes are going to happen. They are, after all, a large part of the learning process. But when it comes to cost estimation, mistakes are something that a company cannot afford to make.
Thankfully, construction estimating software can help prevent a lot of these mistakes, but like any technology, user error is always going to exist. That’s why a company should always invest the time in learning to properly use their software as they implement it into their daily operations.
Until you have become a master at using your construction estimating software, take care to avoid these commonly made mistakes.
Mistake #1: Arithmetic Errors
Even the most brilliant mathematicians are not immune to making simple arithmetic errors when dealing with large numbers. When it comes to cost estimation, there will always be a large amount of materials, man hours and other costs to keep track of. Failing to correctly add up all of the associated costs with a project, misplacing a decimal or any other mistake can cause the numbers to come out incorrect.
Always make sure that you have your numbers double-checked by another member of the team so no careless mistake becomes costly.
Mistake #2: Overlooking or Misrepresenting Costs
There are many costs that can be mishandled, misrepresented and even overlooked by software users. These can include:
Materials that are improperly labeled and described in terms of size, quality, etc.
Labor rates that are not up to date (or forgotten overtime to be added)
Not accounting for transportation costs
Overlooking minor items whose costs can add up to a greater sum
Mistake #3: Not Examining the Prospective Site
Before estimating costs for a potential job, construction companies should always send out a representative to inspect the site. During this visit, the cost estimator should be able to inspect and ascertain what needs to be done before the project starts, during the project and after it is finished. Does a structure need to be taken down? Are there any areas that need to be cleared? All of these questions and more can be answered by taking a visit to the site.
Estimators should also review building codes, permits and any other regulations that may hinder progress or increase the overall cost of the job.
Get the Job Done Right
Besides avoiding these common estimation errors, construction companies should always ensure that they are using an up-to-date software package. At Techware, we always have the latest Sage products. We also help integrate any new software into a company’s daily operations through training, support and more. Contact us today to get started.