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How To Estimate Construction Cost With Absolute Precision?

Anyone who works in the business of construction knows exactly how time-consuming the process of estimating construction cost (ประมาณราคาก่อสร้าง, which is the term in Thai) can be calculated. It is a process that needs to be followed rigorously without fail every time you decide to take up a project. But the problem is that we allocate very little time for it. We have come up with methods that allow you to do so and that too with perfection.

Price Per Unit Method

This method allows you to speed up the time taken to calculate costs while also taking care of accuracy. A big help would be to automate the whole process by which you can keep track of every penny that you spend. You can start by using the cost of all your raw materials and add the total labor costs to it. Then divide that amount by the total square foot area for your project. Add that amount to the recommended databases that are standard within the construction industry and you will get the final cost.

Square Foot Method

 This method is used by construction firms both to attract prospective customers as well as while submitting their bids. Here you are using the historical data that is available generally for the past few years at least and then analyze the average costing per square foot basis. One important thing that you need to keep in mind is to estimate the labor cost. Labor costs are generally almost half of the total construction cost, the other half being the cost of the materials. But your estimates should be as accurate as possible. So you need to factor in all possible expenses that you can think of.

Rule Of Two Method

This method is pretty simple. All you need here is an estimate of the total labor cost. Take that amount and multiply that amount by two and then add another 10% of that calculated amount as a cushion. This method uses the maximum that almost half of the construction cost is that of labor, similar to what we had used in the previous method.

Conclusion

We give more attention to things like labor, raw materials, and organizing teams to get the job done. No doubt that they are important but so is the job to estimate construction cost. Projects are won and lost solely based on what your cost estimate is. So we hope that the methods we have listed will help you in accurately finding out the total construction cost of the next project you undertake.

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Gonzalo Bayer

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