Exploring Different Estimation Methods in Construction

Briscoe also notes that estimation plays an important step in construction projects. It also helps to set the right expectations, it also helps in planning and putting the right mechanisms in place for a project to run. Among different parts of estimation, Quantity Takeoff Services are employed to measure materials, equipment, and labor for necessary construction works. Estimating has been done in several methods and tools which a contractor must evaluate to arrive at the best and most flexible for the job. Three significant types of estimating construction methods are explained in this blog post. 

Conventionally Used Approach

The traditional method includes the specifications, estimates, and costs from the expertise of quantity surveyors and estimators. These are obtained by manual calculations on the information that is contained in the project documents including drawings, material specifications, and site conditions takeoff quantities. Standard cost estimates and reference documents for such costs are utilized to estimate cost rates for various types of material and labor. 

Historically, there are onerous efforts required in the estimating methods or processes. This process allows a high probability of mathematical errors as well as missing some items. The extent of improvement of estimating accuracy is therefore greatly based on the worker’s ability to understand the project size and requirements. However, it enables estimators to qualify their practical experience in the valuation and estimation procedures. In general, it is possible to define that small-scale project contractors and teams can benefit from traditional methods more than from advanced methods at their initial stage.

Technology-Based Estimating

Technology-enabled estimating utilizes software tools and other advanced technologies like artificial intelligence or machine learning to offer better performance in terms of estimators’ effectiveness and precision in the estimation process. Preliminary Estimating Services utilize historical data and model-based analysis to produce initial cost estimates from limited input on a given project. Specialized estimating software facilitates the process of takeoff through the application of number crunching, as well as, price determination and reporting sub-routines.

As we see, historical and statistical analysis, goal and network analysis, etc. improve estimators’ productivity in time-consuming tasks; however, they do not eliminate the crucial role of qualified assessment and judgment by professionals. The tools should be set up, and the results reviewed by estimators, project managers, project controllers, or other persons who understand estimating and are familiar with good practice. While adoption entails up-front software expenses, large contractors obtain substantial economies of time and cost through the use of technology to eliminate repetitive tasks in the long run.  

Outsourced Estimating 

Some construction companies outsource part or all of the external estimation to consultancy firms in the event of limitations in resource availability or expertise. Estimators who are outsourced perform quantification and pricing tasks hand in hand with the team from the contractors’ side. 

Third-party estimators add domain expertise to Commercial Estimating Services based on the construction verticals. The outsourced strategy makes contractors concentrate on central activities while making use of skilled estimation power when required, thus, providing versatility. Nevertheless, oversight needs when engaging other stakeholders becomes slightly complicated. To achieve benefits, the contracts used for estimation and the right partner for teaming must carefully be assessed and matched.

Top Factors to Consider

Consequently, there is a call for an evaluation of project attributes, team expertise, and cost among other factors when it comes to the selection of the right estimation technique since advanced tools and outsourcing strategies come with the prospect of giving better solutions. Large multi-work projects are best managed using a mix of various approaches to achieving effective results. When construction companies wish to improve estimating processes, it will be relevant to understand the current available technologies and optimal strategies to better determine the right approach. Accurate estimation is the most appropriate key to the overall success of the entire project.

Conclusion

Apropos, estimation is one of the preeminent activities in construction projects and has a significant impact on all activities throughout the project’s life cycle. Many options ranging from the manual approach to automated and outsourcing solutions are available today to select from. To come up with an optimal strategy for executing project contracts, contractors have to study the business environments that surround them and the requirements of various projects to identify the strategy that best fits within their resource, competence, and cost parameters. 

Moreover, a purpose-built estimation framework that supports derived tools and technology involvement by professional expertise will be available to generate the complete direct benefits fairly well, by having the correct forecasts and planning. Subsequently, automation and artificial intelligence will replace conventional estimating and pave a new path for improvement in the future.