An Overview on Cost Estimation in Texas
To ensure accurate construction estimation architects must submit accurate plans, estimates, bills of materials, and details to scale. Some factors should be considered before developing high precision construction estimation. One of the most significant important steps in project management is accurate cost estimating, as it establishes the base line of the project cost at different stages of development of the project.
The cost estimate at each stage of project development reflects the estimate provided by the cost engineer or estimator on the basis of existing data. The two different types of cost estimates practiced in Texas as the project progresses are:
- Rough Order of Magnitude (ROM) Estimates:
ROM estimates are generally comparative and are based on the experience of the estimator as well as historical data on similar construction projects. These types of estimates are the first step in project preparation. They provide the estimator with a cost range, such as $5,000-6,000 or $10,000-12,000, so that he can obtain an idea of the size and scope of the project. This kind of estimate can be used for funding requests and budget planning, and get detailed cost estimates before the beginn9ing of construction or renovations.
- Detailed Cost Estimates:
A detailed cost estimate can be obtained after the funding has been approved or identified for a project. The detailed estimate provides the specific breakdown of project costs. A preliminary design is required to get this type of estimate. The existing building conditions need to be investigated and all remodeling projects for heating and air conditioning capacity, electrical service, plumbing, potential hazardous materials, and interior elements such as paint and carpet should be evaluated.
External forces result in phenomenal rate hike for a vast range of integral construction supplies, raw materials and services. Consumer demand and finite supplies have led to the rise in the cost of concrete, steel, gasoline and petroleum. With the rising rates of fundamental raw materials like steel, concrete and petroleum, the amount of time for which cost estimators, material suppliers, subcontractors, and general contractors can commit to pricing grows short.
Due to this volatility of raw materials and supplies, developers must look for methods to compress the construction schedule and work with eminent industry partners to enhance the legitimacy of their project budget. To control time in the initial planning phases, engaging a construction manager or general contractor earlier in the process is suggested. As they understand permitting and other legal requirements and can make sure that all documentation is filed carefully and in a timely manner, to reduce schedule delays.
Building owners should be attentive in the designing, bidding and building process and work as a team member to streamline communications and drive faster completion of projects. Developers and business owners should work with general contractors who are related with authentic suppliers to increase their ability to project and budget construction costs precisely through the end of the building's construction process.