No matter how big or small our Project is – whether it is just a repair or we should build a dam – we need to have a clear insight in all project aspects and project cost. The job of construction cost estimator is to determine the costs of each activity. We calculate the costs of work hours, equipment costs, cost of materials and contingency costs. Every hidden spending must be revealed in order to make the project successful.  Â
The best practice for any type of cost estimation in project management is to divide the project in as many work phases as you can, in order to have a better understanding of project costs and dynamics. Insight into each project phase allows you to make better decisions.
By using Good Estimating Software you can divide project in phases easily and you will have a clear insight in costs and bill of materials of every project phase. Use of estimating software is indispensable for any serious construction cost estimator and project manager.
Often we need to make several combinations of equipment, work force and materials for one project in order to find the best solution – often it is the lowest project cost. Doing it manually will take much time from construction cost estimator and could be inaccurate. You don’t want that – bad estimating leads to the project failure or even company shut down! Today, with good estimating software, it can be done in minutes and you don’t have to worry about accuracy.
We are using four types of cost estimation in project management:
Analogous Estimating
Parametric Estimating
Three Point Estimating
Bottom up Estimating
Deciding which method to use depends on how much time we have – more accurate techniques are more time consuming. In any case estimating software is useful to get an insight in project cost.
Being construction cost estimator is a very responsible role. Estimating Software can save your head!