4 Important Phases of Construction Cost Estimation Process

The construction cost estimating process is a comprehensive feature of the construction that describes the cost of a physical structure of a building. To perform these estimations, construction contractors and sub-contractors need to hire cost estimators who are fully responsible for researching and crafting.

The cost estimators are also responsible for presenting an extensive analysis of the cost of a project developed for construction purposes. There is a simple and easy method to estimate the cost that is by creating a detailed cost estimate. However, this process is so long and very time-consuming. Also, there is a high risk of performing wrong calculations which can further result in the wrong estimation of construction cost.

But there is no need to worry anymore. In this blog, we will tell you how a perfect cost estimation of construction is carried out, by breaking the simple method. We will also let you know that what a cost estimator does along each step of the way. In this way, you will be able to better understand the construction estimating process. There’s a lot to cover. Let us get started.

Before we dive into the cost estimation process, we should be well aware that each construction process and project is unique in its own way. It means that the cost estimation of construction projects cannot be the same all the time. Moreover, it also refers to that every estimator does not estimate in the same way. Keeping all these important points of view in mind, we have divided the construction cost estimation process into four different phases. These phases will be briefly discussed below. 

4 Phases of Construction Cost Estimation Process

Phase 1 

In Phase 1, the estimator works closely with the architect or design team and the client to get an idea of the client's desires and the project's planned scope. In other words, we can say that it is the phase where two parties meet and finalize their construction project and its working. In the meeting, the constructor gets to know the actual desires of the client and what type of work does the client is looking for. After the meeting, the estimator will love to visit the place of construction to visualize the building size and estimate the required cost. Moreover, the estimator may also begin to assess environmental considerations, especially those which will put an impact on the cost or length of completion time of the project.

These mostly include the presence of any protected habitats or species, environmental regulatory requirements like federal, state, and local ordinances. Even the local weather like monsoon and snowfall etc. are also added in the list of impacting the cost and time estimation of construction. Furthermore, an essential part of the process during this phase is building lines of open communication between the client, the estimator, and the architect. This will be very crucial as the project progresses. The client and architect will be able to discuss various things with each other quickly. And the first phase is completed here.

Phase 2

Let us now get well-known about the 2nd phase. Phase 2 of construction cost estimation is where the estimator literally, as well as figuratively, starts diving into the nuts and bolts of the project in order to get and create a detailed cost analysis. This phase fully revolves around creating a comprehensive list of the materials required for construction. It also includes determining a projected timeline for project completion. The list of required materials is also known as Material Takeoff or simply Takeoff. It is not as easy as it seems to create a list of materials. The estimator must carefully examine the blueprints or schematics for a project. Also, the list must include everything from the concrete for the foundation to the light switches and outlet covers. This will be crucial to determine a projected timeline for project completion. In the end, the estimator will also work towards fleshing out a realistic timeline for project completion.

Phase 3

During the phase three process of the construction estimating services, the estimator will seek to determine the labor requirements for a project, as well as, cost of the project. However, it is a very time-consuming process. In this phase, the estimator needs to closely work with the manager and the client. In this phase, you will also calculate how many laborers are required to complete the project.

Phase 4

Whereas in the 4th Phase, a detailed construction cost estimate is provided by the estimator. The relationship between the client, architect, project management team, and estimator can have a significant impact on the likelihood that a bid will be accepted. One thing more that must be noted is that the job of the estimator is not over yet. They must continue to work in an oversight capacity for the duration of the project to ensure that it stays on budget.