Date Written: 2023-08-30
Estimating plays a crucial role in the construction industry, helping companies determine project costs and make informed decisions. However, there are notable differences in the estimating process between a traditional construction company and a design and construction company. Let's explore these differences and understand how each approach varies:
In a construction company, the estimating process primarily focuses on the evaluation of project costs and the preparation of accurate estimates. Here are some key aspects of estimating in a construction company:
Construction companies typically provide estimates based on detailed project specifications, drawings, and scope of work. The estimating team analyzes these documents to quantify materials, labor, equipment, and other project-related expenses.
Construction companies often work closely with subcontractors and suppliers during the estimating process. They solicit quotes and bids from these entities to incorporate their prices and availability into the overall project estimate.
Construction companies commonly engage in competitive bidding to secure projects. They submit their estimates and proposals to clients, aiming to offer the most competitive and cost-effective solution while ensuring profitability.
Cost optimization is a significant consideration for construction companies. They strive to deliver projects within budget while maintaining quality and adhering to client requirements. Estimators analyze different cost-saving strategies and value engineering options to achieve this objective.
A design and construction company integrates both design and construction services under one entity. The estimating process in a design and construction company combines aspects of both disciplines:
In a design and construction company, estimating is closely linked to the design process. Estimators work collaboratively with designers to ensure that design decisions align with the project budget. Cost planning is integrated from the initial stages, enabling better cost control throughout the project lifecycle.
Design and construction companies emphasize value-based design, aiming to deliver projects that optimize both functionality and cost-efficiency. Estimators play a vital role in evaluating design options, identifying cost-effective alternatives, and ensuring the project aligns with the client's budget and vision.
Design and construction companies take on single-source responsibility for the entire project. This integrated approach streamlines communication, reduces conflicts between design and construction teams, and facilitates accurate estimating that considers both design intent and construction feasibility.
In a design and construction company, collaboration between design professionals, estimators, and construction teams is crucial. This close collaboration allows for real-time cost feedback during the design phase and ensures a seamless transition from design to construction.
The differences in the services provided by Design and Construction companies means that typical cost estimation software that is generally avialable is not usually suitable for Design and Construction estimating.
Software like NextEstimate allows Design and Construction companies to create a specification while they are creating an estimate, which provides them with a document to tender out at any stage of the process. It also allows for variations to be incorporated into the specification which means that this can form part of any tenders that are sent to subcontractors. These are both very important features for the Design and Construction process.