Every project needs an accurate budget. Regardless of the size or scope of the project, a valid cost estimate can successfully establish an accurate project budget from an early stage and allow your organization to appropriately benchmark that budget throughout the course of a project. In order to be sure your estimate is valid, the estimator must have an understanding of multiple aspects of the specific job that will impact its cost. These aspects include but are not limited to labor, materials, location, schedule, and site conditions. Understanding the skill sets, labor rates, and required man-hours is essential. This includes any specialized expertise or certifications needed.
Materials – Knowing the types, quantities, and costs of materials is fundamental. This also involves considering potential price fluctuations and availability.
Location – Different regions have varying costs for labor and materials. Local conditions can also affect logistics and transportation costs.
Schedule – Estimators need to factor in the project timeline, as it affects both labor and materials costs.
Site Conditions – The nature of the site, including any unique characteristics or challenges, can significantly affect costs.
Your cost estimator should have the unique ability to price various options within the project in order to recommend the best path forward based on the schedule and cost impacts. It is also imperative that the estimator possesses an understanding of market trends including escalation and tariffs. Using these benchmarks, it is the cost estimator’s role to provide insights into future or potential unforeseen costs that could impact your project. Having an independent cost estimator engaged before the design has been completed allows the project team to make key decisions based on informed and detailed analysis.
