How to Estimate a Construction Project

How to Estimate a Construction Project

How to Estimate a Construction ProjectHow to Estimate a Construction Project

Cost estimates for a commercial project are one of the things that need to go right for the success of the construction project. After all, among the most common things most commercial builders and owners look for is the financial part of the construction. Without it, your project runs the risk of stalling due to financial constraints. 

Therefore, what is the best way to estimate the cost of your commercial construction project, and what exactly is involved during the process? Our Sacramento commercial builders share all you need to know about estimating for a construction project. 

Why Estimate a Construction Project? 

There are two main reasons why estimation is a valuable part of any construction project. One, it allows contractors and commercial builders to win new projects. Considering that most owners are looking to save money, these estimations help them decide which contractor to pick. 

Also, they allow for easy approximation of costs. This is an important part. During the estimation phase, commercial construction companies Sacramento have to deal with take-offs, construction documents, and other related costs. This creates a useable roadmap on how much everything is going to cost and whether it is a worthy venture. 

What to Consider 

It is important to learn a few things before starting work. Some of the things you need to consider during the estimation process include direct costs and indirect costs. 

Direct costs are those that are related to the activities that are carried out during the construction process. For example, buying materials and paying for equipment is a direct cost. Labor is also another activity that lies within this category. 

Indirect costs are also known as overhead costs. They are important to the construction but are not directly related to the activities that happen during the construction. For example, costs aimed at covering utilities, temporary structures, legal fees and permits, security, quality control, and administrative costs are all indirect costs. 

Levels of Accuracy in Estimation of a Construction Project 

Given that this is an estimation of costs, it is not going to be 100% accurate. Especially in the very first stages of the construction process. However, with time, and as the project matures, you should expect to see these estimates getting more accurate. 

Usually, estimates are placed on different levels (1-5) as subscribed by the American Society of Professional Estimators. These include: 

Level 1: Order of Magnitude

This first stage usually has the roughest estimates. During this phase, the project is still in its idea stage so estimations are usually based on previous projects or expert judgment. Here, you can expect the level of accuracy to be -25% to 75%. 

Level 2: Intermediate Estimate 

The intermediate estimate level is an important level because it will determine the feasibility of the project by looking at the general cost construction. It is at this level that most owners, especially for large scale constructions, decide whether to proceed with the construction or not. 

Level 3: Preliminary Estimate

The preliminary estimate level is where the cost of construction is given more detail. Its accuracy is what informs financing. In some projects, the budget will be determined at this level. At this stage, accuracy is highly important. 

Level 4: Substantive Estimate 

This estimate depends on the estimated unit costs. Construction companies and other relevant stakeholders look at the objectives, deliverables, and reasonably finalized project designs before coming up with a substantive estimate. Turek’s Plumbing, Appleton kitchen remodel company, uses substantive estimates often to get their costs in order. They also recommend using this estimate as a roadmap to keep the project within budget. 

Level 5: Definitive Estimate 

This is the final stage where all costs are known. Therefore, the accuracy here is high. This estimate is used to create bids, tenders, and cost baselines.

Using Estimates to Determine Budget 

Usually, an estimator or project manager will handle the estimation process by calculating the overall costs, funding, and budget allocation needed for the success of the project. Our tilt-up contractors explain that these estimates also include risk management and reserves for contingency. 

Making Successful Estimates 

Finding the best construction company for your commercial construction project is paramount for your success. That is why Headwaters Construction Inc is ready to give you the best services.  Call us today and enjoy the best service for your construction project.

Reduce Injuries on a Construction Site

Reduce Injuries on a Construction Site

How to Reduce Injuries on a Construction Site

Reduce Injuries on a Construction SiteAccording to the Occupational Safety and Health Administration (OSHA), 1 among 5 workplace injuries is a construction worker. This shows us how hazardous commercial construction sites are. However, the industry’s ability to adapt has also made it easier for companies to identify the underlying causes of injuries. In turn, this has helped find ways to tackle those issues and reduce the rates of injury on site. Today on our blog, our Sacramento construction general contractors will be covering how to reduce injuries on a construction site.

Hold safety meetings regularly.

These meetings should be held every day, especially if your commercial construction workers are undertaking high-risk work.  Our friends over at McQuillan Brothers, emergency plumber Minneapolis, regularly implement safety meetings into their weekly schedules. These meetings highlight the importance of safety. Additionally, they remind the employees of the dangers identified during risk assessments while reminding them to stay focused. Addressing relevant issues that apply to the job-specific site information ensures that employees know the exposure points.

Conduct a Real Risk Assessment

Before a project begins, a commercial construction site should be inspected for any potential or unusual hazards. These inspections will allow you to develop a proper safety plan that takes into account these potential hazards. Alternatively, you can also have a job hazard analysis carried out on the site. This has proven itself as a savior, both for working capital savings and human lives. 

Additionally, for each potential hazard observed, a corresponding list of preventive measures should be compiled then implemented. A risk assessment document should then be provided for all workers during a safety meeting. The brief will highlight the right education, information, and training required to stop injuries from occurring on site.

Stop Falls Before They Occur

Falls are among the leading cause of injuries in the construction sector. They are also the leading cause of death in the industry. They make up about 33% of all construction injuries. Installing fall protection systems can go a long way in preventing a large number of construction fatalities from occurring. These protection systems include screens, guardrails, canopy structures, toe boards, scaffolding, and nets. For scaffolding, it is important to ensure that it is constructed well and installed properly to hold the intended weight. Scaffolding should also be inspected regularly by a qualified Sacramento commercial builder. Other protection methods include a lanyard or a safety harness.

Maintain Equipment and Conduct Checks Regularly

The machinery used in most construction sites today requires a lot of down-time responsibility, including inspecting the equipment regularly and maintaining it. More than 75% of struck-by injuries result from heavy machinery like cranes or trucks. Thoroughly and regularly conducting maintenance checks on this equipment will increase your ability to stop malfunctions. This is huge, as these malfunctions may cause serious injuries.

Use Protective Gear and Clothing

Workers should, at all times, wear the recommended safety equipment for their jobs. This may include goggles, a hard hat, gloves, high-visibility clothing, a protective suit, or steel-toed shoes. During the summer heat, outdoor commercial renovation Sacramento workers require nape protectors, wide-brim hard hats, and long-sleeve-lightweight shirts. These will help protect them from the sun’s harmful UV rays.

Ensure the workspace remains clean

Keeping the worksite clean and free of debris will reduce the chances of a commercial builder sustaining injuries and preventing worksite accidents such as falls, trips, and slips. Employees are encouraged to put away their construction materials and tools when done with the job. Walkways should also remain free from debris at all times. This will help avert any accidents that include falls and slips.

Exercise caution with vehicles

Many commercial construction site accidents usually involve vehicles. Workers should practice parking, backing, and defensive driving. Commercial construction companies in Sacramento can organize periodic refresher courses to sharpen construction equipment and vehicle operators/drivers’ skills.

Use the Equipment in the Right Manner

Using construction equipment or tools for something they are not designed for may interfere with the manufacturer’s inbuilt safety features.  Misusing equipment may also cause damage to the equipment, which may cause injuries to employees. 

Furthermore, any equipment used in construction sites should meet OSHA standards.

Develop a safety culture

Repeating safety information and warnings every day will help your workers but only to some extent. At the end of the day, working as a team to willfully approach safety will prevent construction fatalities. When your workers make an effort to conduct their own safety protocols and risk assessments, they will help prevent injuries by awareness and active discussion.

Headwaters Construction Inc. hopes that you consider all the useful information on injury prevention discussed above and implemented it on your construction site. If you have any inquiries about the services we provide or would like to learn more about our company’s services, please contact us today.