What are the Major Types of costs Estimating Company in Management?

How to make an estimate?

The cost estimating company is made before the start of the repair. To properly make an estimate requires accurate data space: the walls length, ceiling height, location of windows, etc.. . At first, I counted everything according to the BTI plan and asked a friend-architect to draw the diagram. To our amazement, the plan turned out to be inaccurate: one of the walls on the project was slightly longer than in real life.

The discrepancy was noticed by the measurer of the company from which I ordered the kitchen. He used high-precision laser equipment for measurements and drew plans in a unique program that controls the result and will not allow mistakes in calculations.

Measurements are taken quickly, and the result can be obtained within a few days. I received detailed drawings, which indicate the lengths, floor areas, and the areas of the walls, which are very difficult to calculate on your own because of the windows and doors.

I spent one and a half times more money and time on repairs than I expected.

I made repairs without an estimate: since the foreman announced the amount of 10 thousand rubles per square meter, it will be so. Never in my life have I been so wrong.

After the construction dust had settled, I decided to figure out what I was wrong about and how I had to do it wisely, so I turned to a budgeting specialist.

Better late than never. But now I can share the knowledge I have gained with you.

What are examples of techniques for estimation?

This service costs an average of 5000 P. But it will simplify the calculation of the required amount of materials and avoid mistakes. For example, the measurer saved me from unnecessary expenses: I was already planning to order equipment that would eventually not fit where I prepared according to the BTI plan.

Please note that the dimensions before dismantling, after dismantling and after rough work are different. This is important for ordering everything planned to fit into the room: furniture, kitchen, doors, built-in wardrobes. Even a centimeter error matters here. For example, they sawed off the shelves and polished the plastic inserts for light with sandpaper: because of the layer of plaster, the space between the walls became a couple of centimeters smaller.

techniques for estimation
techniques for estimation

I believed in the infallibility of the BTI plan, but the wall that I highlighted in red turned out to be smaller, and the window, in reality, is located closer to the middle of the border than on the plan. In addition, the BTI plan does not indicate the dimensions of each of the walls.

What are the three basic types of cost estimating?

The estimate lies at the intersection of the interests of the customer and the contractor. The customer wants to spend as little as possible on repairs, and the contractor wants to earn as much as possible.

Why is it important to correctly draw up and draw up an estimate?

Without an estimate, you, as a customer, have fewer arguments to protect your budget: you may be forced to do additional work or take money for something you didn’t even do. But even an ideal cost estimator company may not save you from other expenses. But it will help you decide whether these expenses are justified or not.

If you have entered into a contract with a construction company, you can explain why more money is required from you than indicated in the estimate. They are obliged to tell in an accessible way why additional work is needed.

The estimate also determines the technology of the work carried out. Imagine: the foreman calls you and demands money. He says that he had to putty the walls using a different method, and he bought additional materials and plumbers at his own expense.

If you have made a correct estimate and agreed on it with a representative of the company, you can say: “You did not agree with me on the cost estimating company, change in the technical process and did not warn about additional work. Therefore, I cannot confirm whether these expenses are justified or not. And there was no plumbs in the estimate at all – I don’t understand why it is needed, and I will not pay for it. “

Estimate tasks

These are the tasks the estimate performs.

Fixes the volume and cost of work. The contractor will not be able to suddenly increase the cost estimating company of work or assign new ones without discussion with the customer. The estimate protects the customer from sudden, unreasonable changes in the cost of repairs.

Estimates material costs. It serves as a guide for purchases and helps not to spend extra money.

Provides legal guarantees. On the basis of the estimate, the courts in disputes between the customer and the contractor make decisions.

Gives a control tool. Based on the estimate, you will be able to determine what is happening at the facility. It is easy to compare what is on paper with what is actually done.

costs Estimating Company
costs Estimating Company

Types of estimates and methods of calculation

In professional construction, there are many different estimates, each with its own requirements and characteristics. But repairs in the apartment will not be inspected by harsh inspectors, so you can limit yourself to the following types.

Work estimate. A preliminary estimate for the work – the price tag for the services of the brigade. It allows you to estimate what needs to be done and how much it will cost estimating company. The final estimate for the work reports on everything that was done by the team at the facility.

Estimate for materials. It is impossible to accurately predict prices in stores: they are constantly changing. In addition, the final cost estimating company depend on your choice of parquet, wallpaper, tiles. Therefore, the preliminary estimate for materials only serves as a price guide. The final estimate for materials is essentially the sum of all receipts.

How to choose the best way to calculate the estimate. It is impossible to describe a “standard” estimate. How many builders – so many estimates. Everyone does what is more convenient and familiar to him. Some make estimates using the “from the bulldozer” method: in such estimates, dismantling can easily stand after installation.

The most convenient option for the customer is to request a chronological estimate. In other words, for the builder to arrange the work in the estimate in the order of their planned sequence.

Such an estimate reduces uncertainty and anxiety: the customer begins to at least roughly imagine the course of work without becoming a foreman. If the customer sees that the work from the end of the list for some reason is being performed now, then he may ask what the change in plans is connected with. This helps to track down the problem and prevent it from escalating into losses.

How to choose the best way to calculate the estimate. It is impossible to describe a “standard” estimate. How many builders – so many estimates. Everyone does what is more convenient and familiar to him. Some make estimates using the “from the bulldozer” method: in such estimates, dismantling can easily stand after installation.

When the customer understands the sequence of work, it is easier for him to plan payment and delivery of materials to the builder. The builder is also comfortable – he does not need to rebuild and change something significantly in his work. He performs the work sequentially according to the estimate.

To do this, you can say the magic phrase: “I need to plan time and money so that you do not have downtime and I do not delay your payment.”

It takes a little longer to prepare the chronological estimate. For example, they are dismantling and gluing new wallpaper can write how to “make wallpaper”. You have to explain this approach: tell them that it will allow you to quickly check the progress of work and pay for what was done.

The builder may say that the chronological ordering of the estimate will not work. In this case, it must be said that the works are arranged as if they would be done by one person.

In addition to the chronological estimate, several more calculation methods can be distinguished.

By stages. This is the most popular method of calculation, as it allows you to assess the state of the object after each stage and adjust the estimate in time.

All adjust estimates by an average of 20% – this is normal. For example, after dismantling the old wallpaper, it turned out that the wall was crumbling and had to be re-levelled. The cost estimating company of additional materials will be agreed upon with the customer and included in the estimate for the installation.

By room. Suitable if you are not doing repairs in the entire apartment. Or, conversely, if the object has too many rooms and it is easy to get confused as to how many materials are needed.

But there may be a catch in such an estimate. When you’re making room-by-room estimates, it’s easy to buy excess supplies. For example, you plan to paint the ceiling and write a bucket of paint for each room. It is also more profitable to buy paint in large volumes – and if you take small containers, it can be more expensive.

By type of work. Such estimates are one of the most common, but it is difficult for the customer to track the remnants of materials and the progress of the repair.

Who is authorized to handle the estimate

It is better for the customer and the contractor to deal with the estimate together. This is in the interests of both parties.

If you hire a team, the foreman will make an commercial building cost estimator and agree on it with you. If you ordered services from a company, the estimate would most likely be made by a professional estimator. In any case, you will supervise its implementation together with the contractor.

The foreman makes all changes to the estimate only with the approval of the customer. If materials and work are needed that are not included in the estimate, the foreman must stop the repair, call the customer and get his consent.

For example, during the planned replacement of the door, it was discovered that the wall between the rooms would collapse at any moment. A good foreman will invite you to the site and agree on changes to the estimate.

is almost impossible to forge them. But even a large construction supermarket will have a more modest assortment than the market one.

Basic principles of budgeting

Before starting work, the estimate must be approved by both the customer and the contractor. All changes in the estimate must be agreed upon with the customer.

Be sure to pledge the amount for unforeseen expenses. Usually, it is 30% of the planned estimate. In my case, it turned out that the walls needed to be dismantled and built from scratch. This is not only extra spending on work and materials, but also on delivery from the warehouse and garbage collection. For me, these expenses were an unpleasant surprise since I did not pledge money on them.

The more detailed the estimate, the fewer discrepancies will arise in the process. It is better to break down the work of “tidying up the walls” into smaller tasks: “tear off the old wallpaper”, “level the walls”, “prepare the walls for painting”, and “glue the wallpaper”.

Correctly named works are already half of the estimate.

How many builders, so many wordings of work – each formulates the work as he is used to or stuck in his documents.

One and the same job for different builders may have different names and include different actions. For example, in the concept of “leveling the walls,” each builder will put his own idea, depending on the situation. This makes life difficult for customers and leads to misunderstandings.

An incorrectly formulated task reduces the effectiveness of control, management, and acceptance. Errors in calculating the required amount of materials and payments are growing, and confusion is increasing.

I will tell you how to identify correctly and incorrectly formulated works.

In one cell of the estimate table, there can be only works that have common materials. Ideally, each job has its own cell.

How the estimate is drawn up

The estimate is a simple table. In its simplest form, it contains the following columns: name, unit of measure, quantity, price and amount. It is good if there is a column “discount” – this will allow you to indicate the discount not for the entire estimate, but for a specific job. This will make it easier to understand what exactly cost estimating company you less. If you give a discount on the entire estimate, it is not clear whether the discount will be valid if some work has to be added to it and the estimate expands.

It is not so important how exactly it is framed and in what program. It is important that the customer and the contractor understand the estimate in the same way.

The easiest way is to make an estimate using a ready-made template.

Form. Many construction sites offer to download an estimate form. Usually, it is a text document in Word. It is better not to count the estimate in such a document – the table in Word will not calculate the amount for you – but download a template for Excel or Google tables.

Main Mistakes When Drawing Up Estimates

It is impossible to take into account all the nuances if you make an estimate yourself and have never done something like this before. Here are the main things that are most often forgotten.

Delivery and rise to the floor. The most overlooked expense item. Usually, shops deliver building materials only to the entrance. Either movers or builders will have to pay for getting to the apartment. I live on the eighth floor in a building without a freight elevator, and I cried softly at the rates of the movers every time an order didn’t fit into a cramped elevator car.

I was taking out the trash. It will not work to throw construction waste into a regular trash heap – you will have to order a container. It is not always possible to load a 3-ton container with a 3-ton container: drivers are prohibited from loading a container above the sides. I had to order several cars, although I was counting on only one.

Before starting repairs, ask the foreman or a senior construction worker how much it will cost to pick up the garbage at the end of the work. It is difficult to calculate the final cost estimating company of garbage collection. Lay it at least 10 000-15 000 Padded. If there is no elevator in the house, the price will go up.

Entrance door. After repairs, many change the locks and door trim. These expenses are rarely included in the estimate, and I did not take this into account either.

Paint. A common mistake is to include only one coat of paint in your estimate, not two. I had to not only pay twice as much as I planned but also fork out for another delivery.

Counters. Repair is a good reason to change the meters. I forgot that it is worthwhile to include in the estimate not only the cost estimating company of the devices themselves but also the installation with verification.

Main Mistakes When Drawing Up construction Estimates
Main Mistakes When Drawing Up construction Estimates

Is it permissible to exceed the figures indicated in the estimate?

The estimate is a rough plan, and the renovation never goes according to plan. It is normal to change the takeoff estimating services during the repair. The main thing is that all changes in the estimate are agreed in advance with the customer and are reasoned. If possible, conclude additional agreements for work beyond the estimate.

Some foremen write the prices with a margin. For example, the estimate considered flooring the price of 2500 P and bought it for 2000 p . Or they specially calculated the volume of work more than necessary in order to have a reserve of funds for unforeseen expenses. It is acceptable if the difference is then returned to the customer and not put in his pocket.

How to make an estimate

Renovation is a pain. At some point, I just closed my eyes and gave the foreman whatever he asked, if only it would end quickly. I was knocked out of a rut by unplanned expenses, and because of the nerves and haste, I made several wrong decisions.

Here’s what I figured out now:

1. Before starting repairs, you should definitely invite a measurer. You cannot trust the old plans of the apartment.

2. Repair without an estimate – shot yourself in the knee.

3. Always something goes wrong, and it is necessary to postpone 20% above estimates. If all of a sudden everything goes as it should – 20% will be a nice bonus on the purchase of furniture.

4. If you are not a builder, then it is difficult to make an accurate estimate on your own; you will only get an approximate alignment, which will have to be corrected with the foreman.

1. It is better to insist in advance that the foreman agrees on all the changes in the estimate with you than to swear at a stack of sudden checks.

2. It is better to order furniture and appliances after finishing work. It will be a shame if something does not fit because of a couple of centimeters of putty.

3. Even if the repair is delayed and you spent more than planned, do not make decisions in a hurry and on the nerves. They will bring even more problems.

Leave a comment

Your email address will not be published. Required fields are marked *