Every building in the world was once a construction plan. Some are well thought out and documented while others are simply an idea that comes to life in a matter of weeks. But regardless of what type of construction job the project is, there is some cost to it. Most consumers want to know how much a construction project will cost before it’s built but are unsure how it’s priced. So how exactly can a construction project be priced?
Make An Estimate
Every construction project begins with an estimate. This is because it is impossible to know the exact costs of any project until it is completed. This is especially true on larger construction projects. This estimate is based on the experience of the construction team and is usually based on the raw cost of all the materials necessary to complete the job. An easy way to keep track of this is by dividing the raw materials up into select groups and calculating several subtotals. Then, the combination of subtotals will give the contractor a first pass at a total estimate.
Revise The Estimate
While initial estimates are a great first step, they are almost never the final price of any construction project. This is why revising the project is so important. A good first step to revision is to ensure that the builder’s vision is similar to the vision of the client. The client often has requested a plan other than what the contractor had envisioned and thus the project must be repriced. This can occur in as many or as few iterations as is necessary.
Account For Labor And Potential Setbacks
The final step of pricing a construction project is to include both labor costs and build in a bit of cushion in case something goes wrong. Inevitably, there will be raw materials that are not usable and the number of weeks the project takes can often be extended, causing the cost of labor to rise as well. Clients don’t like paying more than they were originally quoted, so it is important to account for some unforeseen costs. A contractor can always charge less after the project is completed than was originally quoted and leave the customer happy.