Any construction work, ranging from commercial construction to a home renovation project, is a process that involves many stages. Cost control is an important factor in the management of projects meaning that cost, material requirements, time, and human resources need to be accurately estimated to avoid unnecessary project holdups. This article will, therefore, explore how cost estimation in construction affects the probability of delay.
These are some of the high costs that construction delays have to the parties involved, and therefore the construction managers need to make sure that construction schedules are adhered to at all times.
Delays in a construction project can have serious financial implications when construction projects go over time. These lead to added labor and material costs, rental costs of idle equipment, and higher administrative costs. Construction delays also affect the other costs for other stakeholders such as marketing, legal expenses, and the forgone revenues from the uncompleted project.
The most relevant one is that when there are delays there is a likelihood that the project owner and the general contractor may proceed to law court to sue each other for failure to comply with the set contractual provisions. Litigation usually takes more than 15 months and costs an average of $500,000, which does not include the project size or the contract value.
What are the Root Causes of Poor Estimation
One of the leading causes of delayed construction projects is inaccurate estimates regarding the time it will take to complete the project. Common causes include:
- Lack of clarity in the design drawings and specifications
- Scope creep which is the alteration of project plans and specifications in an unplanned manner
- The use of inaccurate data in estimating.
- Lack of integration planning into the designs
- Project teams not communicating with each other
Lack of adequate Budget Estimating Services at the initial stage of a project results in additional revisions at a later stage when accurate data is obtained. Lack of accurate cost control causes contractors to offer low bids to win contracts but from staff and resource constraints required to execute the project at the bid price.
The role of the estimator is to prepare a cost estimate of the project so that the project manager, the project sponsor, and other stakeholders can make the right decisions.
Thus, the strategic value of an experienced estimator is undeniable in the planning stages to prevent underestimation of costs. This specialist professional prepares correct budgets by studying technical drawings, estimating the cost of materials and labor, pricing the regulatory charges, and suggesting the correct period for the particular project.
The quantity takeoff services offered by the estimator involve the breakdown of the different types and quantities of materials that will be necessary, in addition to identifying necessary equipment and workforce. Since the estimator factors probabilities of supply costs throughout construction and the state of the market, the actual cost estimates offer direction when it comes to designs and potential contractors.
Similarly, including the costs such as permitting, bond, insurance, and project management ensures that there are no extra costs that crop up in the middle of the project. When an estimator has a complete understanding of the project, they can simulate various budget plans to improve decision-making while the construction is still in the pre-construction phase.
How Improved Estimating Helps to Minimize Delays
Here are four ways enhanced estimation practices reduce delays from cost overruns and unplanned events:Â
1. Accurate Material Takeoffs
Accurate material quantities are used to order the material in advance to ensure there is no lack of supplies. This helps avoid work stoppages due to waiting for urgent supplies to arrive on the production line. The right materials that are sourced ahead of time contribute a lot of time to the course hence minimizing the delay.
2. Realistic Milestone Scheduling
The estimator gives an overview of the possible construction stages that can be attained given the detailed plans and approximate resources required. Resource availability, scheduling that is based on the correct time estimates, and integration of the effect of delays are some of the benefits of accurate activity duration.
3. Effective Risk Assessments
Expert estimators include them in budgets as they review blueprints to assess constructability risks or events that can affect costs like weather conditions or the need for particular tools or equipment. Coming up with such risk mitigation strategies before they occur helps to prevent the occurrence of these delays.
4. Increased Due Diligence
When budgets are accurately forecasted, it ensures that the expectations of the owner are met by the capabilities of the contractor. Since the bid price mirrors the actual costs of the project, the contractors cannot afford to understudy costs to shave down their expenses hence implying better quality of work done within the stipulated time. As for all such due diligence, much depends on realistic estimations.
The Value of Outsourced Estimation
While some large contractors employ in-house estimating teams, many construction firms leverage freelance services for specific needs like:Â
- In addition, seeking second opinions on in-house estimates from third-party practitioners and consultants.
- Assessment by professionals for the specialized or technical subtasks of the project.
- Anticipated maximum workload for the contractor’s estimating department
Third-party estimators provide objective views of costs and non-cost overlooks and specialized services such as Freelance Electrical Estimating. Other reliable estimating consultancies also utilize the most advanced equipment for more precise estimations by analyzing drawings with tools such as machine learning and VR rendering.
The outsourced estimator serves as a neutral consultant who offers a full range of estimating services without affiliation to any construction solutions. All such analysis is unbiased and pertinent to purely operational needs with an emphasis placed on reducing delay through careful planning.
Conclusion
Summing up, it is necessary to note that estimation accuracy plays a significant role in construction project results. Wrong estimations give rise to wrong budgets and schedules, which cause delays due to wrong planning, lack of resources, unrealistic deadlines, and unnecessary risks.
Professional Cost Estimator uses formal methods in predicting expenses and resources for the entire project duration thus providing crucial information to the managers for better decision making. Companies focused on project estimating were ready to deliver on time, on a fixed budget, and without delays through preparation during the construction phase.
External consultants give assurance of reliable cost estimation which is an economical way of managing risks rather than having to incur expensive costs from disputes and failure redundancies as a result of delayed timelines. In conclusion, as the construction industry optimizes the use of the predictive planning capacity, they are likely to enhance the progress of their projects to the realization of all the stakeholders.