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Strategic Cost Estimation for Contractors in 2024

Construction Business Owner

Strategic Cost Estimation for Contractors in 2024 ccapoccia Fri, 03/01/2024 - 16:03 As we navigate the complexities of the construction industry in 2024, the ability to provide accurate cost estimations remains the cornerstone of a contractor’s success.

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Credible Construction Estimate Core Elements

Job Order Contracting

A credible construction cost estimate is required prior to engaging in procurement. The follow elements are common to a credible construction cost estimate. Credible Cost Estimate Core Elements #1 Objectivity – The information used and those invovled in the creation of the construction cost estimate must be objective.

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Collaboration and informed decision-making in the construction industry

Job Order Contracting

Improving construction cost estimating requires collaboration, transparency, and a robust process. Relying solely on contractor or subcontractor costs, especially lump sums without collaborating on a detailed Scope of Work (SOW), will not lead to verifiable construction costs. Check it out!

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12 Step Program for Creating Credible Construction Estimates

Job Order Contracting

The below 12 Step Program for Creating a Credible Construction Estimate is a valuable tool for any real propery owner or services provider. #1 1 Define estimate’s purpose ■ Who will use the estimate and how. Monte Carlo simulation) to develop a confidence interval around the point estimate. ■

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Benefits of Local Market Cost Data to Create Estimates – 4BT

Job Order Contracting

This enables simplified data management and the ability to update estimates with various other databases as needed. #4 Our platform can manage multiple Programs, Contracts, Proposals, Estimates, Work Orders, Documents, Forms, Contractors/Subconstractors, Teams, Buildings, Graphics, Issues/Tasks, and even leverage BIM information.

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Objectively Validate Contractor and Subcontractor Quotes

Job Order Contracting

Objectively VALIDATE Contractor and Subcontractor Construction Cost Estimates Construction cost management capabilities are critical to the success of any repair, renovation, maintenance, or new build activity. 2 Validating contractor estimates using a locally researched cost database can save 30%-40% of overall project costs. #3

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Adopting Labor Operations Software for Contractors

Construction Business Owner

CDT A growing consensus of contractors believes labor utilization can be greatly improved with the right software. He’s passionate about leveraging technology to champion the skilled trades, accelerate digital transformation and make construction an industry of choice for a new generation entering the workforce.

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