Even in negotiated bidding scenarios, construction estimates need to be accurate in order to strike a balance between the owner’s budget and the contractor’s profit. On the other hand, overestimating the actual project costs could lead a contractor to submit a bid that’s too high to be selected. A contractor that underestimates the cost of a project could be forced to cut into their own profit margin to cover project costs. After a preliminary estimate, design or scope modifications may be required in order to alter project costs.Ĭontractors also depend on accurate estimates in order to prepare bids that are competitive and profitable. Without an initial understanding of a project’s costs, owners cannot determine whether a project is feasible within the allotted budget. Both owners and contractors rely on cost estimates to move a project from preconstruction to completion. Data-driven estimating for long-term growthĪccurate estimating is essential for the success of any construction project.Turning an estimate into a bid proposal.Solicit pricing from suppliers and vendors
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