Estimate Construction Projects Properly and Profit Every Time

Real Estate Investing School: By Nicholas Hurd

Is it a hard task for you to estimate properly on your construction projects? Are you juggling money between projects because you just don't have enough? Do you use present job payments on previous job expenses? If this is true of you, you're not making estimates correctly because you are estimating improperly and not covering costs, as well as ensuring a profit.

Do You Guesstimate or Do You Estimate?

In order to estimate properly for your construction jobs, you have to take some time and effort to go into detail. You can't just look at what has to be done and guess what costs and time are required to do the job properly. If you guesstimate, it's very likely that you'll get in trouble because not only will you only be doing a very rough estimate, but it's likely that you'll overlook some areas you should include in your estimate. Actually sit down and work out construction estimates so that you take everything into account and make a profit instead of actually going into the red. If you want every project to be a success and earn you money, you have to make sure your construction estimate is accurate and fair. In order to plan the project properly, you have to estimate the cost of materials and hours accurately so that you cover these expenses thoroughly but fairly and are left with a profit after the project is complete. As an example, if you have a wall that you need to frame and drywall, you can't just look at it and throw out a guesstimate. You might actually underestimate not just what you have to do, but the materials and man-hours involved, and come out with a loss.

When you make a construction estimate, to do so accurately, you have to consider the time it will take, the material you'll need, and other costs involved such as labor, equipment and so on. If you guesstimate, you can actually overestimate and lose the contract to someone else who can undercut your costs, or you can underestimate the total cost and actually come out in the red on the job.

Compare your construction estimates thoroughly and carefully, based upon scientific techniques and methods. The results should be qualitative. If your estimate is correct, you'll come out with a good profit and will be able to complete work on time as per the schedule you come up with. To draw up the right estimates, you need to understand what each job requires and then plan properly. A correct construction estimate is necessary for you as a contractor so that you understand just the type of work the job requires. This is also of benefit to the customer, because he or she will have a clearer idea of the work involved and the cost he or she will be required to pay, as well as the time it will take to complete the project.

Nick Hurd is the developer of LiteningFast Estimating. LiteningFast is an estimating program that helps you estimate faster, easier and more accurately. It's integrated with QuickBooks to provide job cost.

It was introduced to the market in 1994 and currently has over 3,500 users in the US, Canada, and around the world.
You can find more information at construction estimating for contractors. You'll be glad you did.

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