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8 essential steps for effective project cost estimation and budgeting

Fieldwire

Estimating project costs correctly and managing the budget accordingly are just as vital. All subcontractors make project cost estimation and budgeting errors. Follow these eight essential steps to estimate project costs and budget funds effectively to prevent grave miscalculations.

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Elements of a Cost Estimate

Construction Cost Estimating

The foundation for a successful estimate depends on authentic takeoff of the quantities of the various materials involved in the project. The various elements that lead to an effective cost estimate are as: Labor Hours : Labor hour amounts can be prepared by crew analysis or applied on a unit man-hour basis.

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A glossary of terms with reference to Construction Cost Estimating

Construction Cost Estimating

Allowance - a value in an estimate to cover the cost of known but not yet fully defined work. As-sold estimate - the estimate which matches the agreed items and price for the project scope. This total or subtotal is usually identified as such in an estimate report. Also known as Total Estimated Contract Cost (TECC).

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Labor estimating is very crucial factor for calculating accurate construction cost

Construction Cost Estimating

In order to control cost of constructed facilities, labor estimating is one of the most important concerns. The thorough application of labor hours to a quantity result in managing the exactness and competence of labor estimating. Now-a-days computer aided design software are available for perfect labor estimating.

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Seven Construction Associations You Should Consider Joining

Fieldwire

Other benefits: Some associations provide financial benefits, such as discounts to car rentals, insurance, supplies and other items. Union organizations are not listed here, but also provide many similar benefits to members. American Society of Professional Estimators (ASPE). General Interest Construction Associations.

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Authoritative Source on BIM – Mission: Improve all aspects of the facility and infrastructure lifecycle by promoting collaboration, technology, integrated practices, and open standards

Building Information Management

Other components include, capital planning and management systems (CPMS), cost estimating and project delivery systems (IPD – integrated project delivery, JOC – job order contracting), computerized maintenance management systems (CMMS), building automation systems (BAS), geographic information systems (GIS), and others.

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Q2 Construction Labor Costs $28.13/Hour

Job Order Contracting

The following tables present an overview of the industry including the number of jobs, the unemployment rate of those previously employed in the industry, job openings and labor turnover, union membership and representation, gross job gains and losses, data for occupations common to the industry, and projections of occupational employment change.