Are you stressed about the various Challenges in Construction Estimation and Tendering?

The competition in cost estimation can be brutal. Failing to keep up with the recent changes, could result in loss of your business. So how can you create accurate estimates that increase your chances of winning clients?

If you are tired of low bid-hit ratios or are just starting in the construction industry, this article is for you. We are going to talk about 5 of the most common challenges in construction estimation and tendering, and how you can overcome them.

Challenges in Construction Estimation and Tendering

1-  Market Price Changes

Chasing a moving target has to be one of the most difficult things that contractors do. You have to create a budget for a building that probably won’t be created for 6 months.

Fluctuation in the construction market is a significant challenge in estimation and tendering. It is important to have a firm grip on the variations in materials, equipment, and labour costs.

How to Deal With it?

Choose the Right Construction Cost Estimator who stays up to date with recent prices. They also have contact with various suppliers. You can also use pricing guides such as RS Means for real-time pricing.

2- Complexity and Intricacy of Project

Globally, construction projects have become more complex making tendering and estimating more difficult. Design, structure, and architecture have become more intricate.

Some construction projects may present themselves with a number of risks and variables. It could baffle even the most expert estimators.

How to Deal With it?

Complexity is one of the most common Challenges in Construction Estimation and Tendering. Before starting a project make sure to analyze the scope. Fully understand the level of complexity and plan accordingly. Also, make sure to include the stakeholders in the loop at every step. Identify risk factors and take steps to mitigate them beforehand.

3- Strict Adherence to Time Frames

The process of tendering often faces the challenge of tight time frames for contractors or subcontractors. Professionals have to provide accurate estimates within the set duration of time. Completion in time is necessary because if a project exceeds its time limit then the client may not even consider your proposal despite how it is planned.

How to Deal With it?

To rectify this issue, experts must break down the project into individual tasks. Thus, allocating an appropriate amount of time to each task and making sure that it follows through on each task. Task scheduling and checklists can save time. Moreover, you can also outsource your work to other estimation services such as Bidding Estimate. Bidding Estimate in a rising cost estimating company that delivers precise estimates.

4- Problems with Data Handling

Managing large amounts of data manually is one of the most hectic Challenges in Construction Estimation and Tendering.

Not to mention that it can consume a lot of time. Inefficient handling of data may lead to confusion, inaccurate estimates, and rework. This should be avoided at any cost.

How to Deal With it?

Use advanced cost-estimating software with cloud-based sharing. Shifting to digital software will help you to organize and present data in an orderly manner. Some of the most utilized software are as follows:

• PlanSwift
• Bluebeam
• STACK
• Quest Estimating 
• ConEst
• Trimble 
• RS Means 
• On Screen Takeoff 
• Fast Duct 

5- Availability of Data

One of the main issues is the availability of accurate and credible data. Estimators heavily rely on historical data in order to acquire precision in the estimating and tendering process. That is why finding the correct data which is relevant to the project is paramount. Having a proper database of past projects can be helpful and support estimators a great deal.

How to Deal With it?

This issue can be dealt with by utilizing the appropriate bidding or estimation software that suits your particular project.

Construction Estimation Company: The Answer to All Your Problems

Outsourcing your work to a Construction Estimation Company, can improve your bid hit ratio and help you to gain more clients. Cost estimators are professionals with years of experience in predicting expenses. The perks of hiring a professional estimator are as follows:

• They use advanced tools and technology to enhance accuracy.

• Outsourcing allows you to work on multiple projects.

• It gives you time to focus on other aspects of your business.

• Estimators can help you land more jobs by winning clients.

Conclusion

In summary, Challenges in Construction Estimating and Tendering are always present. So it is important to pre-identify them and strategize your planning accordingly. These challenges might include the availability of historical data, fully comprehending the complexity and competitive bidding. In this article some of the prominent challenges have been addressed and how to rectify them productively. Experts need to tackle them on time. As if not timely handled it can create a detrimental effect on the whole project. Make sure that proper strategies are placed for these challenges for a smooth and streamlined process.