Estimate construction cost work exactly what it sounds. It is an estimated cost that needs to build a complete structure of any building. Even if it’s public infrastructure, every Businessman should estimate their building cost before constructing it. It is important to look after how to estimate proper construction costs.
In our blog post, we will discuss the basic types and ways how to estimate construction costs professionally. However, we will inform you about all the potential main points. They are useful before starting estimating any project.
Types of Estimate Construction Cost
The initial thing you have to understand about any estimated construction cost project is the levels of estimates. As you progress in your project line, you may conference many challenges that may push up the construction price.
However, you may need to find out all those ways that will help you to save additional money. According to the research of the American Society of estimates, there are all five top levels. You need to understand before starting to estimate construction costs.
Level 1:
Level 1 is an order of magnitude estimate. If you want to know how to estimate construction costs, then you need to first examine the first level professionally. It is on the back of the napkin. It is one of the simplest calculations that can be directly accurate and feasible to provide instantly.
Level 2:
Level 2 is the design estimate or symmetric construction cost. The type of estimate is useful for major construction companies. It is useful if they need to determine the closest amount of any construction project.
Level 3:
Level 3 is a developing estimate. At this level, the estimate gives a rough idea in the form of paper. It works along with the initial building design for clients.
Level 4:
The fourth level is known as the construction estimate documenting stage. Moreover, At this level, the estimator proposes a specification to construct any building along with the blueprints.
Level 5:
The last level is known as the bid estimate. The level comprises the contractor’s final estimate, which works on the plans, material costs and time. However, it is the final and definitive estimation. It is presented at the final stage of project accomplishment.
How to Estimate Construction Costs? – 3 Ways
Strategy 1: Unit Pricing
One of the best ways to estimate construction costs is unit pricing. It is the most common estimation method. It is useful for finding estimates of any services and products. Let’s suppose you want to start a project on hardwood floor refinishing.
You probably chart the work on the basis of square feet. The base rate per square foot is known as unit price. Moreover, your project will need the help of expert contractors and estimators. However, you might need to capture all those indirect costs that may affect the construction estimates.
Strategy 2: Square Footage Pricing
Most of the time, our clients need fast estimation and quotations for their construction projects. So it is important to give them a quick call on their construction project with the square footage pricing way. However, it is not an accurate construction cost. Moreover, it gives our clients an idea about their entire project estimates.
However, it might be slide risky to give them rough estimations. However, the best strategy always works on the construction area size. It also includes this scope of work and the time to complete the project.
Strategy 3: The Rule of Two
The third strategy is the rule of two methods. The strategy includes creating a series of rough estimation that includes your construction project. Moreover, it works the same as the other methods, but it works well when you need a direct cost.
The role of the two methods is mainly to work on the labour accounts and the construction costs. So if you are an expert contractor, then you probably will take a few hours to give estimate construction costs with the help of the rule of two methods.
Final Verdict:
We discuss how to estimate construction costs with the help of three effective methods. Are reliable construction cost estimates that will take a bunch of work to make the client budget? However, an upgrade estimate to start any project will more likely work to begin a new business.
You are free to use any hidden method or any other template to make a good estimation. You can even talk with the expert contractors like proficient estimation solutions. They will guide you with the best way to estimate your projects. Moreover, Get in touch with them to estimate your project cost!