Common Commercial Construction Mistakes
Estimating is one of the most demanding jobs in the building industry. However, incorrect estimates will result in a considerable amount of money being lost. Part of the calculation relates to the design of the construction projects: each construction project is special. Estimators obviously cannot use a one-size-fits-all technique, leading to multiple factors taken into consideration during the estimation process. Even with the best estimators, there will still be a certain degree of ambiguity that can lead to common commercial construction mistakes.
Here are five of the more common pitfalls that could lead to Sacramento commercial construction estimation errors.
#1. Accurate or ambiguous architecture, plans, and specifications
If the design, plans, or requirements are wrong or incomplete, the stage is set for cost overruns. This also occurs when the design phase of the project hastens to launch the project. It could mean that the design team or construction personnel are not experienced, and there could be additional problems along the route.
If you’re not sure what the plans and requirements are asking for, there’s no way to determine a reliable calculation.
#2. Accurate material take-off (MTOs)
For the construction estimator, a thorough, accurate list of all the raw materials, equipment, and quantities required to complete the construction project is necessary. An incomplete or incorrect material construction take-off list can discard the construction estimate by a considerable amount.
The material form requires specification; it is not enough to provide a list of general materials and quantities. For example, costs can differ greatly between grades of steel, specific material brands, or type of electrical cable. If this information is missing or wrong, the cost estimate could be a long way off.
Usually, the material take-off list is produced from the blueprint details and other design documents. Our retail renovation contractors explain that these records are incomplete or incorrect, the accuracy of the material take-off list would be compromised, further compounding the problem and making the material take-off list less likely to be accurate.
A less significant influence, but one that has an impact, is that an incorrect list of take-offs can result in employees not having what they need to do in the construction project. This can lead to commercial renovation companies to experience expensive delays and misappropriation of labor.
#3. Difficulty in calculating labor costs
Our commercial builders explain that the most costly building costs are labor costs. It’s also the toughest to correctly predict. In order to measure labor costs, the construction estimator must consider the degree of experience of each worker and the rate of pay and efficiency of each worker available.
The typical calculation guideline is to estimate how many hours each job will take. Using historical data from similar jobs can help, but every job is different, just like every work team.
#4. Not keeping up-to-date with business dynamics
The cost of building materials is another major part of the construction calculation. Although historical data can be helpful in some cases, a cost-effective construction estimator would remain on top of the market factors that may influence the cost and supply of materials.
Perhaps the employees at the plant are on strike, or the price of oil, gas or coal is rising. These factors would increase the cost of processing and shipping raw materials, thereby effectively increasing the cost of raw materials.
It can take a long time from the initial estimate to the start of a construction project, particularly when it is big. During this time, the cost of materials could increase considerably. Staying up to date on what is happening in particular sectors, such as the timber industry. will increase the accuracy of the estimates of the construction estimator.
#5. Not Accounting for Risks
Danger is an important part of the building process. Construction estimation should always provide an assessment of the level of risk associated with the project. This helps management to decide whether to bid or move on a task. Other Sacramento companies urge to account for risk as well. Gilmore Heating, Air and Plumbing, Sacramento HVAC company, says this is the best way to avoid making serious mistakes. Other factors to be considered in the risk evaluation which include the age and reputation of the project owner, whether the project pricing is set or adjustable, if the materials are custom or normal, or if the materials are subject to price fluctuations.
Make the estimation process simpler
Today, more than ever, direct cost estimation matters for a construction company. There’s so much riding about the precision of the building figures. Just the use of estimating tools is not sufficient to obtain the most efficient estimates and preserve profitability. Cost estimators can also use project management tools, such as eSUB, to provide the most reliable details. Both tools, used together will bring more peace of mind to your construction business.
Commercial construction should be left to the professionals. If you need a general contractor in California, contact Headwaters Construction, Inc. Our team is experienced in tilt-up construction, retail renovation, commercial planning, and general construction. Learn more about our commercial construction projects.
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