Construction is not easy and straightforward. It requires a lot of effort, planning, and design to execute projects. Because of this, the cost of construction must not be underpriced or underestimated.

Accurately estimating construction costs is vital for your construction work to go through. Whether it is a modest residential home or a luxury complex, the significance of a precise cost estimation cannot be overstated.

In construction, budgets can be tight, if not often, and the margins between them are slim. Hence, you need to get the cost right from the beginning. One of the most common challenges beginners face in cost estimation is underestimating the time, costs, and efforts required to ensure deadlines and budget overruns do not happen.

As a beginner in construction, this article is a must-read as we will be looking into how to estimate construction costs.

Why Accurate Construction Cost Estimation Matters

The stakes in construction are high and you cannot afford to overlook any factor in your estimates as they can lead to overruns, strain relationships with clients and even delay projects.

Here are what an accurate construction cost estimate will esure:

• Preventing cost overruns and delays in projects
• Establishing trust with clients and investors
• Improving project planning and decision-making processes
• The effect on profitability and the viability of projects

Key Factors That Influence Construction Costs

Various factors can influnce the cost of construction. The major ones are:

• Project Size and Scope: This is one of the most common factors that can influence construction cost. Ths size of the project has a direct impact on the labour and materials required, which also directly affects construction costs.
• Location of the Project: the location of a project can incfuence the construction cost especially in high-value areas like Lagos, Abuja. Aside from that, if your project site is located in areas that have a high altitude, is flood-prone or rocky, your construction project will become difficult and since you will require more labour, the cost increases.
  Access to materials and labor will also influence cost, especially of they are far from the location site.
• Design and Quality of Materials: The complexity of the design of a project will also determine the quality of materials to be use. These also affects construction cost. The building geometrical design, including the shapes, size and its complexities. Building with uniques features will need costlier materials, and if the client requires it.
• Labor Costs and Availability: Depending the state you are in, construction costs may vary widely. Also, in some areas, labour wages may be charged hourly or on a daily basis. Hence, you must understand labour standards and properly estimate building costs. However, you should know that you may have to pay for more labour as the work demands.
• Permits, Fees, and Regulations: Depending on your location, you may need the authorization of your governing authority while you pay charges for for registration, approval and permits. These costs may vary depending on the authority and so, it is important that you consider such costs when making your budget along with your other expenses.
• Others include: Site Conditions and Preparation, Project Timeline and Delays, methods of construction, etc.

Types of Construction Cost Estimates

When preparing construction cost, it is advisable to have several cost estimates, especially during the pre-design and design stage. The more refined your project is, the more accurate your estimates would be. The following are types of construction cost estimates:

• Preliminary Estimate (Rough Order of Magnitude): This refers to rough estimates made during the early phase of the project. It gives a value to build on, assisting interested parties on making easy decisions on a project to see how feasible it is financially.
• Budget Estimate (Schematic Estimate): This is more detailed and based on conceptual plans. Here, each step of the project is carefully estimated and measured. It calls for a trustworthy starting point for budgeting and a reference point for monitoring the project expenses as it proceeds to completion.
• Definitive Estimate (Detailed Estimate): This is highly accurate, based on final plans and specifications. It is more thorough and estimates all expenses, accounting for even the smallest expense. It allows for careful planning, exact calculations, and an understanding of the building procedures.
• Unit Price Estimate: this is a cost per unit of measure (e.g., per square foot). Here, the construction cost is estimated by multiplying the quantity of each work by its unit and is commonly used in construction by identifying the materials, equipment, and labor costs for each of the components.

Step-by-Step Guide to Estimating Construction Costs

• Step 1: Determine the scope of the project 
• Step 2: Develop a comprehensive project plan 
• Step 3: Identify materials and their quantities 
• Step 4: Assess the costs of materials 
• Step 5: Estimate labor expenses 
• Step 6: Consider equipment and tool costs 
• Step 7: Include overhead and desired profit margins 
• Step 8: Incorporate contingencies and allowances for risks 
• Step 9: Review the estimate and finalize it 

Construction Cost Estimation Methods

• Square Footage Method: A quick calculation based on size of the project
• Unit Pricing Method: thecost per unit of work (e.g., linear feet, cubic yards)
• Assembly or System Method: thecost of entire assemblies or systems
• Detailed Estimation Method: this is anIn-depth, and itemized method calculations.
• Historical Data Method: This uses data from similar past projects

Using Construction Cost Estimating Software and Tools

Estimating construction cost can be overbearing and because it involves complex calculations and detailed breakdowns, it can be challenging to manage especially for  abeginner.

For this reason, software tools have been made to allow this process to be simplifies by offering automated calculations, quantity takeoffs, real-time cost tracking and collaboration features.

Using this specialized software can help you produce a more accurate budget, mitigate errors, save time and also improve the project plans. Some of these tools incleude: PlanSwift, ProEst, RSMeans, Bluebeam Revu, HCSS HeavyBid, etc.

Common Mistakes to Avoid in Construction Cost Estimation

As said earlier, estimating construction cost is a very important aspect of construction as it determines the success of any project, residential or commercial. Avoiding mistakes when estimating construction cost can help you save time and manage your expenses. Below are the some of the common mistakes to avoid:

• Underestimating expenses and unforeseen issues 
• Disregarding alterations in design and project scope 
• Miscalculation of workforce efficiency 
• Failing to recognize hidden costs (such as permits and fees) 
• Relying on outdated cost information 
• Overlooking risk assessment 
• Incorrectly evaluating project deadlines 
• Erroneous material quantity estimations 
• Ignoring licensing and regulatory obligations 
• Not considering cost escalation 
• Poor communication with project stakeholders 

Expert Tips for Accurate Construction Cost Estimation

As a beginner, you need to have an adequate understanding of estimating construction cost. In doing so, you are able to avoice unnecessary damage to your projects. Below are the tips to achieving accurate construction cos estimation:

• Divide the project into smaller, achievable parts. 
• Utilize specialized estimation software. 
• Consistently refresh the cost database. 
• Cross-check estimates against industry standards. 
• Seek advice from seasoned contractors and specialists.

Conclusion

Estimating construction cost is the first step to getting an easily footing and manage your project expenses.

As a beginner in construction, you need to have enough practice and refine your skills. Managing cost can be hard to do and even a bit stressful if you do not have a clue, and this is why it is important to consult an expert, an estimator or you can also explore professional tools to help.

Avoiding a mistake during cost estimation should be your major priority, as it saves you from loss and unnecessary feeling of incompetence.