Highlights Of Construction Bid & Construction Estimating
Every construction project always entails a construction bid and also the construction estimate.Most clients in the industry use one term while meaning the other. A construction bid is a proposal or the tender submitted by a general contractor to undertake or manage a building project. The construction bid involves the use of blueprints, cost estimates, and material takeoffs. The construction bid is often a published construction material that is made available to all the interested parties. Construction estimating mainly refers to the cost of the project.
In the construction bid, the contractor commits to provide the client with a detailed construction method at the provided budget and time. When the customer approves the bid, the contractor is required to honor their commitment and carry out the tasks specified in the proposal. Depending on the quantity of the project, the plans may take a given period. Before commencement of work, there is a need for the parties involved to sign the bid.
Price estimates in the construction industry are used to forecast how much cost you are likely to incur if you agree to undertake a given project. The degree of accuracy while project estimation should be reasonably high because this determines your profit after the project completion.
The overall project benefits the difference between the price estimate and the real costs incurred during construction. The categories of the estimates include:
The preliminary estimate, this assists in the assessment of the core purposes of a building project. An individual can then be able to determine the credibility of the project.
Square-foot estimate, in this step the project details are converted to provide industry standard unit costs per square feet.
Assembly estimate involves division of the project into components and determining the estimated cost of carrying out the individual components.
Assessment is more detailed and accurate and acts as a basis of the construction firm. It mainly involves the application of written commitments from those who will take part in the construction project like the subcontractors and partners. It also forms the basis of a firm or formal commitment made to the client.
The most accurate cost estimates are required to place the right price in your construction bid, so as to develop a good amount of profit from the project.
Construction bids and estimates for massive construction projects may take a considerable amount of time. It is mainly because the projects have numerous details and specifications that need checking before coming up with a decision. Also, the amount of capital invested in such projects is quite high hence there is need to have minimal sources of error. On the other hand, small project handling occurs in a short period hence they do not require a lot of emphasis like that placed on big projects.
Energy and time-saving in the preparation of bids and cost estimates by the use of software because of the accuracy provided and the small time frame with which the software can come up with a solution concerning either construction estimating or construction bids.