Construction Estimation Trends to Watch

Cost estimation in commercial construction project management is the process by which a general contractor forecasts needed financial and related resources to complete a project within its defined scope. This involves accounting for all elements of a building project to calculate a working figure for the project budget.

For a commercial construction contractor, holding the line on expenses is essential. An accurate estimate reduces the hazard that the contractor will lose money on a project. Owners use bidding along with the cost estimation process to select a contractor who will fulfill the requirements of a building project for the lowest possible cost. Owners rely on accurate cost estimations to determine a project’s feasibility and avoid overpaying for a contracted building project.

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Elements in Cost Estimation

The accuracy of cost estimations for building projects relies heavily on each of the factors listed below.

  • Project plan quality and cost information accuracy
  • How extensively the estimator defines a project
  • Estimator skill and the quality of the estimator’s tools and procedures
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Trends in the Commercial Construction Process

In the past, an estimator would develop only one or two versions of an estimate as a final bid or for a negotiated contract. While this approach still applies to hard bid projects, this is no longer the case with most building projects. Increasing reliance on Building Information Modeling (BIM) and design-build project delivery methods often results in nearly continuous project plan modification by building owners and designers alike. As a result, large projects can generate hundreds or even thousands of estimates before their ultimate completion.

"For a commercial construction contractor, holding the line on expenses is essential."

Wallace Construction Group

Generating Accurate Cost Estimates

Wallace Construction Group has more than 100 years of combined construction management experience. Our team has completed 200 construction projects since we started, including more than 50 AHCA certified construction projects. Contact us to discuss how our cost estimation services can help you plan and execute your next construction project.

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