How to Save Time Preparing Construction Cost Estimates

Trying to find a way to quantify and price a project more effectively, efficiently and accurately? The following is a checklist of steps to consider incorporating at the beginning of your takeoff routine:

Check the plans. If I had a dollar for every time I had a set of plans in hand that was missing a schedule or detail I would have more shoes. If any drawings are missing and they are important pages you need, the drawings provider can track them down. In some cases, depending on who your client is, this may have to pass through channels before the documents get back to you.

Check the dates on the documents. Nothing worse than working through a large project, getting close to the finish line and then finding out from your client "Sorry, wrong version of the documents, here are the correct ones." Then you have to start over. Rather than going through that awkward conversation with your client about time and cost, you may be able to avoid it altogether.

How to handle questions. Confirm the method of dealing with questions or requests for information. Your client might want all your questions at once or as they come up is preferred. Either way, confirming the method of submission and turn around times for answers and follow up will cut down on rushing and confusion for everyone.

Take some preliminary measurements. Get the gross floor area, gross exterior wall area and any other larger quantities that will be useful in your overall takeoff. You may need to send these high-level quantities to others on your team or verify them with the client before moving forward. 

Check the specification early. The specification typically contains information that may not show up on the drawings such as details on the materials, the scope of work, installation processes and special conditions and exclusions - and the list goes on. Reviewing this first can help you get started on researching special items early and make connections in the blueprints that may not have been as obvious before reading the specification. Stay tuned for our follow up article on construction specifications. 

Get a second opinion. Ask a colleague to review the finished report before finalizing. This is not always possible, colleagues might be busy or like me, you are solo. That's okay. Try setting a goal to complete your report a few days earlier than the deadline. Put a draft of the report aside for a day or overnight and come back to it the next day. Leaving a buffer like this allows for time to chase down any last minute pricing, follow up with other team members or organize backup documents. 

Be proactive and find a routine that fits you best. There may be a better way than described through my experience preparing estimates and concept cost plans. The important takeaway is to find a process that works for you - then rinse, wash and repeat.

Have anything to add to this list? Leave a comment below and share your experiences.

4 Benefits of Concept Budgets in Project Planning

Does your construction budget match your plan?

When I started my company the first thing I did was prepare a budget. My idea was a concept at best but the analytical spirit in me needed to know if my plan was financially doable.

During the design phase of your construction project, there is an opportunity to prepare a concept budget. A concept budget is a quantitative analysis of the components in a building broken down by specific categories or elements. This breakdown shows where the dollar value of a project is being spent. This analysis can happen at any time throughout the design process - but should be done as early as possible. A concept budget is usually prepared by a quantity surveyor or costing professional.

There are inherent benefits in preparing one before the design stage is over and before you go to a contractor.

Make decisions early. Avoid redesign in the final hour if the costs from your contractor come in higher than budgeted. This will cost you time for the redesign. It may also cost you money depending on the contract you have with your architect/designer. On the flip side, your design may prove to be below your budget (it happens sometimes). You may want to include a luxury item that you didn't think you could afford.

Have something for comparison. You can use the cost plan as a basis point in deciding which contractor bid to choose. The cost plan gives you an idea of where the costs of construction should land.

The second set of eyes. Getting the right combination  of perspectives on a construction project leads to success from the start. A costing professional can work with your design team to identify cost alternatives and risks associated with material, labour or equipment availability.

Funding and Loans.  Having a cost plan prepared will help back up a financing application. You may also need to apply for financing or funding before the design is complete. Having a concept budget will ensure that you are applying for enough financing/funding and keep you moving forward on your project.

The beginning of a construction project is like starting your own business. It starts with an idea and the plan grows over time until you are ready to launch or break ground. Consider including a concept budget as part of your planning process. Your bottom line and timeline will thank you for it.