What are Construction Estimates?

• Construction estimates are price quotes a contractor calculates, which attempt to reflect the overall cost of a given construction project. The point of a construction estimate is to give the person funding a construction project an idea of how much the project will cost ahead of time, and for the construction company to get an idea of the time and resources that will be required for the job if they are contracted to carry it out--as well as the profit they stand to make. A construction estimator, like the laborers, can be employed by the construction company; but often, the contractors themselves make construction estimates.
  
  

Gathering Information

• The majority of a construction estimator's time is spent gathering information to make estimates. Gathering information involves traveling to the site where construction is going to take place and communicating with whomever is funding the project as to their exact needs and the specifications of the construction project. The estimator must determine the exact materials the client intends to use and the dimensions of the structures that are going to be built. The terrain around the construction project must also be taken into account, to plan where machines and materials will be able to travel and how difficult it will be to work with the terrain. If a client is putting in a basement, for instance, the cost can vary greatly depending on whether the home is above soft dirt, soil full of large stones, or bedrock.
  
  

Calculating Estimates

• After the estimator has gathered all necessary information, he calculates an estimate and relays it to the client and (if applicable) the management of the construction company. Calculating the estimate involves using mathematical formulas to arrive at expected costs per square foot of construction using given materials, factoring in the man hours required to complete the project. For large projects, estimators will sometimes use computer programs that assist in formulating estimates based on data the estimator has gathered. For smaller projects, the estimator may be able to create a rough approximation on the spot and relay it to the client immediately. For instance, if the client wants a new bathroom added to a home and the contractor just finished a similar project, the estimator can probably make a good guess as to the cost of the project.