{"id":45670,"date":"2019-03-28t11:11:18","date_gmt":"2019-03-28t15:11:18","guid":{"rendered":"\/\/www.deco-dalles.com\/?p=45670"},"modified":"2019-10-18t13:28:54","modified_gmt":"2019-10-18t17:28:54","slug":"3-construction-cost-estimating-mistakes-missed","status":"publish","type":"post","link":"\/\/www.deco-dalles.com\/3-construction-cost-estimating-mistakes-missed\/","title":{"rendered":"3 construction cost estimating mistakes you may have overlooked"},"content":{"rendered":"
construction cost estimating is an important and major part of any construction project.<\/p>\n
to improve your estimating skills, you must first understand that each project is different and no two are identical.<\/p>\n
dr. saleh mubarak, expert on construction planning and scheduling discussed the most common construction cost estimating mistakes that are being made and how you can avoid them during a broadcast with 世界杯2022亚洲比赛时间 .<\/p>\n
there are various types of estimating methods that are used, but there are 3 methods that are used the most<\/strong>:<\/p>\n as you may know, cost estimating is the \u201cdetermination of a quantity and the predicting or forecasting, within a defined scope, of the costs required to construct and equip a facility, to manufacture goods, or to furnish a service.” note: explained here<\/a> is the difference between a estimate, quote. bid, and proposal<\/p>\n some cost estimating mistakes can seem insignificant, but can turn out to be the most catastrophic when investigated.<\/p>\n to help you avoid and prepare for these mistakes i\u2019ve highlighted below 3<\/strong> of dr. saleh mubarak\u2019s common cost estimating mistakes and how to remedy them<\/strong>.<\/p>\n <\/p>\n mistake #1:<\/strong> failure to apply common sense judgement on numbers produced by self or others.<\/p>\n people tend to depend on machines\/technology to answer questions, which may, at times, produce an incorrect answer. this inaccuracy is usually not questioned or noticed because it was calculated by a machine that is assumed to have the correct outputs at all time.<\/p>\n we blindly trust the computers outputs.<\/p>\n we don\u2019t use our heads anymore to memorize. in this day and age, everything is right at our finger tips (stored on our mobile phones). we all make mistakes, and nothing is wrong with that but being aware of these little anomalies can help in the long run.<\/p>\n remedy:<\/strong> always work on your \u201cmath intuition\u201d and \u201ceducated common sense\u201d judgement.<\/p>\n an example to help you strengthen your \u201cmath intuition\u201d or \u201ceducated common sense\u201d is grocery shopping. when you buy 40 items try to estimate how much you must pay before you go to the cash.<\/p>\n other methods are:<\/p>\n <\/p>\n mistake #2:<\/strong> failure to predict and calculate cash flow.<\/p>\n cash flow is vital. most failures of construction companies are the result of financial mismanagement.<\/p>\n <\/p>\n what you need to know\/think about when it comes to cash flow:<\/p>\n an example if this is the collapse of carillion, uk\u2019s 2nd largest construction company:<\/p>\n this is a typical case of lingering financial issues and increasing in debt until you can no longer borrow and\/or afford the payments.<\/p>\n remedy:<\/strong> work with the scheduling department on preparing cash flow diagrams and make sure they stay up to date. have red and yellow flags that note these issued and make it a note to inform management of these so it can be fixed sooner than later.<\/p>\n <\/p>\n mistake #3:<\/strong> failing to make appropriate adjustments to the unit cost number.<\/p>\n regardless of the type of database that is being used and\/or who owns it, the numbers must be constantly adjusted depending on factors such as location, time of the year, season, climate, size of project and complexity of design.<\/p>\n there is also productivity changes that need to be investigated that can impacts the durations.<\/p>\n different adjustments apply to materials, labour, equipment, and overhead. for example, in a very hot\/cold weather, you need to adjust productivity (labour + equipment) but not materials cost.<\/p>\n remedy:<\/strong> make sure accurate adjustments are being applied to each project separately. you shouldn\u2019t assume errors or successes, always check the unit price for each. for example, some countries that require you to import equipment\u2019s may create an issue due to pricing, location, shipping etc.<\/p>\n <\/p>\n — have you ran into any of them before and what did you do to remedy the problem?<\/p>\n will you start taking these mistakes into consideration so you can avoid inaccurate construction cost estimates?<\/p>\n leave your comment below.<\/p>\n\n
\ncommon cost estimating mistakes<\/h3>\n
\n
\n
\n
\n
\n
for more details, exercises and the remaining 3 cost estimating mistakes and remedies, click here<\/a> to watch the webinar.<\/h3>\n
\nwhat are your thoughts on these mistakes?<\/p>\n