Importance of Cost Estimation for Competitive Construction Costing

Cost Estimation SoftwareModern building construction methods these days are very much dependent on modeling. These are not just 3D models of the buildings to be constructed, but also of the cost of materials.

Before computers were widely available, large-scale farm feeds were computed via numerical analysis tools. These models used standard tables of ingredients and their nutrients, with the cost of these materials entered as these fluctuated on a daily basis. The aim was to reduce the cost while maintaining the feed quality. In some instances, feed formulation tables were also created for various requirements, like fattening, or for egg laying chickens.

Building Information Modeling Methods

Today’s Building Information Modeling (BIM) methods borrow heavily from the agricultural industry. The cost of the materials and their properties, like tensile strength, durability, and others, are included in the equation. BIM also allows builders the flexibility to ask questions like how thin is a structure or the effect of using a different concrete mix for a wall. At the same time, the results of the models could be used as input for PERT/CPM charts. The amount of time required to cure a load-bearing concrete wall, for instance, is very important for construction companies.

Computing for Take Off Quantities

One other result which today’s cost estimation software allows is in computing for take off quantities. These can be used in creating various tables of cost estimates and scenarios. These are also effective tools for large projects where the cost outlay may be a substantial investment on the part of the building contractor.

Cost and time estimates are no longer limited to large projects. These are also used for bidding purposes. Specifically, construction costs are estimated according to various variables. In most cases, these variables are set to follow standards and are used as guidelines for the actual building dimensions.

Getting the right cost estimate requires the right information, the correct building requirements, up-to-date materials costs as well as powerful software with a lot of computing power behind it.