Benefits of Using Production Rates in Construction Cost Estimating
Why use production rate versus unit rate cost estimating? Using production rate cost estimating, also called “bottom-up”, is the very first level of knowledge a cost estimator should acquire. It takes time and consistency, but it is all worth the effort. From my observations in the field of cost estimating and working for various clients, […]
How a Cost Estimator Can Help Small Contractors Increase Profit
Setting the Stage As a cost estimator, working for a large construction corporation, or for a small contracting firm are two very different things. Most likely, the large construction firm has a cost estimating department, led by an Estimating Manager, they have procedures and policies in place, learning and career growth opportunities, etc. All the […]
Direct vs Indirect Costs for Construction Projects CAPEX
There is a question that comes up quite often. What are the indirect costs for a capital cost estimate? For the person who is not very familiar with the various delivery methods and contract types for the construction projects, it can get confusing. I am writing this post to shed some light on the topic. […]
Construction Cost Estimating – Composite Crew Rate
Firstly, let’s define the need to use composite crew rates. If you are using a cost estimating software, you do not need to determine a crew composite rate, the software does it for you. But, you still need to set-up your crew(s) for your construction activities. Setting up the correct crews for your construction activities, […]