A construction estimate template is an important document used to perform an estimate for a construction project. Using this document is the best way to make sure that you don’t spend more than the project costs. To avoid financial issues, the estimates that you make from the start of your project should close to accurate.
Table of Contents
- 1 What is a construction estimate template?
- 2 What is an estimator in construction?
- 3 What to include in the construction estimate template?
- 4 How to estimate the cost of building a house?
- 5 Steps to follow for using a construction estimate template:
- 6 How to make a construction estimate?
- 7 Who can use the construction estimate template?
- 8 Conclusion:
- 9 Frequently Asked Questions (FAQs)
- 10 Why should you use a construction estimate template?
- 11 How to estimate the cost of a job?
What is a construction estimate template?
It is a document that includes a breakdown of the anticipated costs of a construction project. This document is important for you to properly make the budget for a specific project. This ultimately makes sure a great return of investment and a timely evaluation of possible financial risks.
It is imperative for the document to be quiet accurate as you will use it to make a budget for your project. This makes sure that you have enough funds to accomplish the project. You may also like the Construction Schedule Template.
What is an estimator in construction?
An estimator, in the construction business, identifies the costs and prepares estimates on construction projects. There are specialized estimators for different projects such as architecture, civil engineering, electrical, and more.
In cost estimation, an estimator may also specialize for only one construction trade such as the electrical project. The construction estimation template is used by estimators for different projects.
The estimators generally work with those companies that deal with commercial, industrial, and residential projects. They also work with them that deal with major mechanical, trade, and electrical contractors.
What to include in the construction estimate template?
You should include the following elements in your document;
Completion time for the estimate
Estimates generally give the timeframe that is required for project completion. You have to be clearer in this aspect.
Licensing information and contact details
Include your complete name, physical address, and contact details such as mailing address, phone number, and email address. During or after the completion of the project, your clients might want to contact you. It is also essential to add your license information. Your clients with this information will feel more confidence and trust.
When hiring contractors, most clients look for liability insurance. Therefore, if something happen in the process of completing the job, you have to include insurance information to cover any potential damage. In standard construction or home repair estimate templates, there is a section where you can enter your insurance information.
Scope of the project and the timing
Every construction project typically consists of various small steps in its completion. For example, you will buy materials, develop the structure, and more. You should also have everything in writing aside from having blueprints for your projects. You can write down each step of the project, the estimated material costs, and labor costs. You should mention all these in your template. Furthermore, your client won’t have to ask any questions in the course of your project in case you can clarify everything in the document.
Project payment’s estimates and expectations
Your template should have a section that pay attention to payment that will concern both you and your client. It is usual practice for contractors that throughout the course of the project, they require payments with part of the costs serving as the down payment. When you discussed the project with your client, the schedule of payments may vary on the basis of your preferences and the agreement you’ve had.
Itemized list of the bid information
Here, you have to write down all of the costs associated with each task that requires completion. There is also a requirement to identify who will handle the acquisition of the required permits and licenses that are required for the project’s completion.
How to estimate the cost of building a house?
You should break down the process step-by-step in order to make it more understandable. At the same time, give you with a framework for more accurate estimation. You should follow the below steps to estimate the cost of building a house;
Identify the floor plans
For the new home, the process begins with the selection of a floor plan. It becomes easier with this to identify the style, quality, features, and size that the client wants for their home. This acts as the baseline for your project.
Search for the new home construction costs as per square foot
It is important to get the closest estimate possible, however, it is impossible to get an exact amount for building a new home. By taking the total cost of the project, you can do this as mentioned in your construction estimate template. Then, divide this amount by the total square footage of the entire project.
In relation to estimating the construction costs, identify what features refer to
The new house price isn’t only analyzed by its size. When identifying the home’s construction costs, you also have to consider other features such as quality, features, and style.
To accommodate additional costs, leave room
It’s a good idea to factor in some additional expenses while making the contractor estimate template. These additional expenses are generally overlooked in the excitement of building a new home.
Consider cost overruns
Finally, when identifying the construction cost of a new home, it is essential to prepare for any cost overruns. Always keep in mind that the cost of a finished home is almost always more than the original price bid. This can assist tremendously in avoiding this outcome. By discussing the creation of a detailed construction contract, you can initiate this. The more accurate the estimate you will make by revealing more details. As a result, within the estimated budget, the more likely the expenses will stay. You should also check the Construction Proposal Template.
Steps to follow for using a construction estimate template:
Here are the steps to follow;
Determine the project
At first, you have to determine the project. There is a section at the top of the page where you have to name your company, the project, its number as well as provide details about the client, location, date of the document, and project manager on the site. These details are helpful for the companies who are running more than one project at a time.
Write down activities
There are three main stages of construction projects that are pre-construction, construction and post-construction. The construction estimate template list down the following;
- All the general activities that occur during these phases
- The people such as a subcontractor or vendor who are responsible for it
- The labor and material costs
- A line item total
- A cell to add notes
The pre-construction phase has the following;
- Expenses for creating the design
- Getting permits
- Looking into zoning regulations
- Survey costs
The construction phase has concerned with the following;
- Digging a foundation
- Pouring concrete
- Structural work
- Adding electrical
- Plumbing and heating
- Ventilation and air conditioning and more
While, the post-construction phase has smaller fixes. They are captured by the following;
- Punch list
- Trash removal
- The closure of all construction documentation
In the construction estimate template, every section has a row for any additional costs. They have a subtotal to tally those costs. Then, at the very bottom, a grand total added up. You will become able to capture all your expenses throughout the planning process by having this construction estimate template.
How to make a construction estimate?
With the help of a template, you can easily make an estimate. These templates contain guidance regarding a process from the start to a finished proposal. In order to make construction estimate, you require a plan for the project and you have to calculate the estimated materials and labor required to complete the project. A markup for profit and overhead will be included in the estimate.
Make a construction estimate checklist so that you can use it as reference for each estimate you make. Also, there is a few helpful construction cost calculators and construction calculator collection that will assist you in calculating your cost.
Who can use the construction estimate template?
Anyone who wants to estimate the total costs of a residential construction project can use this template. Generally, it is used by the;
- General contractor
- Custom home builder
- Residential remodeler
- Specialty contractor (plumbing, HVAC, etc.)
- Construction estimator
- Project manager
In conclusion, a construction estimate template should has all the necessary elements that the client wants to see. It would be recommended that a professional or licensed contractor make the template.
Frequently Asked Questions (FAQs)
Why should you use a construction estimate template?
You should use a construction estimate template for following reasons;
- To stay organize and include all crucial information
- To avoid errors by including mandatory form fields
- In order to become more professional
- For avoiding repetition of data entry and save time
- To keep track of rates, prices, expenses, and receivable accounts
- For the protection of your business with terms and conditions
- For your project managers, it simplify construction projects
How to estimate the cost of a job?
The industry doesn’t matter, there are a few necessary elements for every estimate such as line items, estimate totals, and terms and conditions. The difference lies in a service categories that are specific to the construction industry. You should consider these steps;
- Decide what services you would like to provide
- Make a list of standard line items for bids and estimates
- Set prices for every service