How to get rid of construction project drawbacks - Some useful measures
In order to run your construction business smoothly, you have to submit more tenders to get more projects. In this regard, you have to ensure that your bid submission process is perfect and bid is priced precisely as well as you have submitted the lowest bid. So all the project team members should have clear and concise ideas on all the costs associated with a construction project.
The following are some useful steps to get rid of the construction project estimation drawbacks:-
Unpredictability: In a larger construction project, it is often required to employ more than one estimator. If several estimators are appointed, the things can be messed up with improper activities. So, there should be concise and reliable guidelines for taking up identical estimation for the same service or product. The estimators should supply a high degree of detail to cope up with the stringent deadline. They should utilize simplified recording system to verify what each can offer and tally with the contract requirements. They should also offer clear definition to avoid costly errors & discrepancies. The reliability and consistency of all the informations collected should also be checked carefully.
Management: Use some sophisticated tools to maintain level of detail and complexity while making estimation of a construction project. Now-a-days template based spreadsheet for estimating becomes very popular for executing many tasks as well as automating the estimating process to analyze diversified scenarios. But spreadsheet based estimating may not be always perfect as maneuvering a figure in one column to get a individual cost item down will bring about results to a different place in the document and in the mean time all the calculations are completed, the end result will be multiplied to a great extent.
Low Bidding: In initial phase, if costs are calculated precisely at regular interval, the possibilities for errors may still occur any time. In your company one team out of the total teams can complete a job somewhere else and evaluate that the new contract would be suitable in a perfect way. Here the tendencies may arise to keep the rate of bidding lower to obtain the work & keep the staff engaged in figuring out how to get a profit from the work and it can always be performed afterward.
Besides, in order to keep the profit margin on top of the project costs, estimate should be clear and perfect. But sometime, we fail to notice the simple calculations. Mistakes may happen if you can't find out what costs the figures denote. In most cased, mistakes take place while documents are transferred among different departments. If the total costs are calculated in a wrong way, the profit margin can be ruinous. The proper software should be used to keep away from making the bidding too low.
Software issues: Software is very important in keeping the process times less as well as automatically pointing out holes in estimate documents. If you utilize imperfectly-built software, it can produce to errors which can't be identified throughout the estimating process. The errors can occur in software construction, programme performance, hardware inaptness and an failure to integrate data sourced from other software.
In order to improve the efficiency of the software, you have to check how the software interrelates with the "fleshware" that is the humans tasked with operating it. So you have to select easy to use systems and complete training and support for staff should be provided to improve buy-in and considerably make a better final cost estimates.
Lack of transparency: It is not sufficient to win the bid by providing all-inclusive assessment of costs. All the stuffs associated with a company should easily understand the detailed cost estimates. If detailed information is supplied in one inflexible format like on a single spreadsheet, then additional effort should be given to make out the figures easily as per requirements.
The cost estimate should provide a brief synopsis and a thorough breakdown for those at the top of the company structure. But it should also contain understandable and related information to lower level staff as well as project managers and members of the commercial team.