Getting the correct cost estimate for your construction project is crucial in ensuring you don’t exceed the budget. Many people underestimate the cost of construction, which can lead to disastrous results. Here, we will discuss five tips you can use to get the right construction estimate, and avoid costly mistakes.
How to Approach Construction Expenses
A lot of factors can affect the final cost of the project. For example:
- The location of the construction site- If the site is in a remote location, it will likely cost more to transport materials and labor to the area.
- The type of building materials to be used- If you’re looking to save money, you can opt for lower-quality materials. However, it’s essential to balance cost and quality when choosing materials.
- The size and scope of the project- The bigger the project, the more it will cost. But even small projects can get expensive if they’re complex. When estimating the cost, you need to take into account all hidden elements
- The labor costs involved-Labor is one of the most significant expenses in any construction project. The type of work that needs to be done and the number of workers required will affect the final cost.
Why Accurate Construction Estimates are Important
According to a National Association of Home Builders report, the average cost of a single-family home in the United States was $290,000 in 2016. The report also found that the average construction cost per square foot was $100. With predicted future inflation, it can only get higher.
It’s vital to get an accurate estimate of your construction project if:
- You want to complete it on time;
- You want to avoid going over budget;
- You want to get the most value for your money.
Five Tips for Generating the Correct Estimates for Your Construction Project
1. Know what you want
The first step in getting an accurate estimate is knowing what you want. You need to have a clear idea of the scope and nature of the project before you can get an estimate of the costs. You can decide by:
- Visiting a building site or model home that is similar to what you want
- Making a sketch or blueprint of your project
- Looking through magazines or online for inspiration
If you’re unsure what you want, get help from a professional architect or designer who can help you develop a clear plan.
2. Get Multiple Bids
Once you know what you want, the next step is to get multiple bids from different contractors. It will help ensure that you get the project’s best price.
When getting bids, be sure to:
- Get at least three bids
- Make sure the bids are for the same work
- Get the bids in writing
3. Compare apples to apples
You should ensure that the bids are for the same work. Otherwise, you won’t be able to compare them accurately.
4. Get multiple estimates
Once you have a clear idea of the project, get estimates from multiple contractors. A simple way to do this is to get a quote from each contractor for the same work. It will help ensure that you get the project’s best price.
5. Don’t forget about hidden costs
There are often hidden costs associated with construction projects. The most common include:
- License and permit fees
- Inspection fees
- Utility hookup fees
- Dumpster rental fees
Be sure to ask each contractor about any potential hidden costs so that you can factor them into your estimate. If they’re not upfront, moving on to another contractor is okay.
Pitfalls to Avoid
A major pitfall to avoid is ignoring local building code requirements. These codes cover everything from the types of materials used in construction to the minimum requirements for structural integrity. Failing to adhere to these codes can result in costly delays
Others include:
- Failing to get the proper permits
- Hiring an unlicensed contractor
- Not getting multiple bids
- Choosing the lowest estimate without considering building materials quality
Building a home is a huge investment. You last want to get caught up in a construction project over budget. These tips highlighted can save you big money by reducing unnecessary costs. Try them the next time you generate estimates for your construction project and see the difference.