When you own a commercial construction company, you have many business concerns. Among them are how your construction costs breakdown. You need maximum visibility for success through well-informed decision-making.
Here are four areas to examine when determining your commercial construction costs and a solution that can bring them all together.
Ideally, you can gauge profitability even before the project gets underway. If not, you’re not only losing money on jobs, but the business may be at risk.
Is it possible to determine your commercial construction cost breakdown?
The reality is that when your construction company loses money, it’s likely due to a cost estimation error. And chances are you’ll be unable to obtain a proper commercial construction cost breakdown because of incorrect data.
Every successful project begins with a successful estimate. However, the issues behind unsuccessful project wins often lie with those estimates. Researchers have found that each cell in a spreadsheet has up to a 5% risk of containing an error.
Even in the construction industry, estimates that contain hundreds or even thousands of individual cells are highly likely to contain errors, making them the leading cause of poor estimate quality and lower bid wins. For example, a Florida construction company used @sum to total numbers in a range. The range wasn’t changed when an item was added, so the added item was not summed. This caused the company to underbid the project by a quarter of a million dollars.
Construction company Emerson came up $3.7 million short in their estimation of the total cost of a contract bid. One cell in their spreadsheet for the costs for electrical work was not included in the formula that calculated the final cost.
Where’s the data?
Commercial construction companies may face data that’s scattered in the wind across multiple teams, locations, platforms, and devices. Many of those users are adding data into multiple cells, so this information is compromised if mistakes are made. There’s no visibility to obtain a correct commercial construction cost breakdown due to these factors.
In order to avoid these mishaps that occur due to this decentralization, there is a digital solution that can help.
ProEst provides an automated, cloud-based estimation and takeoff solution that removes problems caused from using outdated estimating spreadsheets. It eliminates errors and increases accuracy. For construction companies, ProEst supplies the tools to not only enable you to quickly respond to bids, but accurately calculates detailed cost estimates and allows you to gain visibility of your commercial construction cost breakdown.
Construction project manual takeoffs are time-consuming and complex. When dealing with paper-based blueprints, these have the potential to negatively impact your estimates. With issues in inaccurate material, equipment, and labor totals, manual takeoffs only to serve to provide poor estimates that result in fewer bid wins, but an inability to view your true commercial construction cost breakdown.
ProEst uses digital blueprints to reduce takeoff times by up to 50%. With estimating and takeoffs in a single software, digital technology is built into ProEst. This gives the flexibility to perform on-screen takeoffs using electronic blueprints and a mouse.
Data integration is frustrating when you’re unable to view project data because it’s scattered across teams, files, devices, and platforms. As a result, you can’t centralize the information and gain visibility. Not only do you lose bids and profits, but you can’t determine your cost breakdowns.
ProEst centralizes data and makes it easily accessible, 24/7. It also supplies the integration of important data-sets seamlessly with business platforms like Procore.
Let’s face it. Normal reports don’t provide the information you need. Having such inaccuracies complicates your reporting, making it more difficult to view your commercial construction cost breakdown for a project. In addition, it’ll be hard to obtain proper insights and decisions. If you don’t have proper project estimates due to spreadsheet errors, scattered information, and poor takeoffs, you can’t provide the best reports for your clients. You may have fewer clients when those reports are inaccurate and look unprofessional.
ProEst’s reporting creates data-driven reports throughout the estimation process. Construction companies can choose from dozens of standard reports, or design customizable reports to view estimate details for project cost breakdowns. This also drives your better decision-making through these key findings.
What to look for in your commercial construction cost breakdown can sometimes be a daunting task. You need to obtain correct project estimates and takeoffs whose with integrative, visual data points. When data isn’t available, you take a chance with producing reports that show actionable information.
What you do need are ways to take charge of your projects to view how your construction costs actually breakdown. With ProEst, it is possible to determine your commercial construction cost breakdown.
ProEst is a cloud-based pre-construction estimating platform that helps you create accurate estimates and digital takeoffs directly from blueprints quickly, allowing you to determine the most favorable rates for your company within the estimation process. There’s no guesswork involved. ProEst makes quality assurance in commercial construction projects estimation effortless. You won’t have to engage your entire team to be sure your numbers are accurate.
If you would like to learn more about how your commercial construction company can increase its profits and reduce miscalculations during the estimation process, reach out today and schedule a 1-on-1 walkthrough with one of our specialists.