09Dec
By: On: December 09, 2020 In: Uncategorized Comments: 0

 

There is nothing more important to your business than being able to provide potential customers with accurate estimations. If you guess right, you can make a nice profit. However, if you guess wrong, you may lose money by spending too much on contractors or supplies. 

Unfortunately, this is a challenging thing to get right. There are no two projects that are exactly the same, and there are countless issues that may cost you in the long run. 

Quality construction management software will help, but there are several pitfalls that even experienced construction managers may fall into if they are not careful. Keep reading to learn more about some of the most common mistakes and how you can provide customers with accurate estimates and make the most money possible from the job. 

Agree on Plans with Your Customer 

A common and rather significant construction issue is if a customer’s idea of the final product turns out to be quite different from what you had in mind. You must take the time to nail down all the project details by creating an accurate set of plans you both agree on. 

Remember, actual plans are needed, not just drawings. 

It is not just enough to draw up basic concepts that you and your customers agree to. It would help if you had plans that outline all the different aspects of the project. Not only that, but your customer must sign off on this plan. 

If you do not have the measurements in place, you are asking for an upset customer and costly do-overs. This happens much more often than you may think – you should take steps to avoid being the next victim. 

Utilize the Unit Cost Estimating Method

A stick estimate is a time-consuming process. You have to list every part of the project, all sub-contractors, materials, and permits. After that, you must cost out everything. It can take weeks to finish, and this extended time frame could cost you a job if your customer doesn’t want to wait. 

Using unit cost estimating is a process that is two times as fast as stick estimating, and you don’t have to sacrifice quality or accuracy. It also helps you get something to your customer sooner

Ask for Help 

Some contractors miss the mark when they estimate a project because they do not have the expertise needed for a specific part of the job. 

If you create a detailed breakdown of something you know a lot of about, you will be on the money. However, if you don’t know as much about something, your estimates may not be as accurate. It is essential to flesh out all estimates and, if necessary, get an expert to help with things you don’t know about. 

Make More with Accurate, On-Point Estimates 

If you want to make the most money possible with your construction projects, using the tips here and avoiding the most common mistakes is essential. For more help and information, reach out to the pros

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