How to Ace your Construction Management Estimation
- Monday, 30 May 2016
One of the toughest things to do in construction management is to have an accurate budget estimation. There are a number of factors that alter the end result, and with enough miscalculations, your project can end up being a costly endeavour. Which is why making sure you have the following factors in place is of the utmost importance.
Top factors needed to accurately estimate your construction project's budget
There is no universal skill or factor that will ensure a 100% accurate budget. However, a mix of the right skills and resources will render an acceptable budget range for your construction project. Consider the following:
Real-time data
Things change, and they do so continuously. Whether it's a change in the original design, a change in certain materials, or employee turnover, these changes have an impact on your final budget. Make sure you are using a real-time construction information management system so that you are always in the know of what's affecting your bottom line.
Resource allocation skills
If you haven't done so already, you should always be brushing up on your resource allocation skills, especially if you are the construction manager. Overallocating equipment or human resources may be catastrophic for some parts of your construction project. Make sure you have a clear overview of your resource allocation. Be prepared to have spare resources or a contingency plan in case something is amiss.
A network of trustworthy suppliers
A supplier is not delivering on time? If the materials you need take too long to get to the site, then time setbacks can cost your dearly. Make sure your materials have easy-to-find substitutes. If for some reason your order is a special one, keep an eye open in your network for anyone who can replace your supplier or material as fast as possible.
Flexible sponsors
We can only hope for the best sponsors possible. It makes things easier when it comes to fixing issues, or if needed, when you need more budget. There is only so much flexibility you can count on to deliver a successful project though. Too much or too little flexibility, and everyone in the project suffers. An experienced sponsor will understand and be prepared to implement a contingency plan.
Negotiation skills
Prices, resources, delivery dates, and quality. Your negotiation skills should be top notch if you are to deliver quality.
With these 5 factors in place, your estimation ought to be within scope.