Having innovative and creative architectural design might seem like an easy job, and a lot is going on behind the scene. No matter if it’s a simple house or a stadium, an effort is always a demanding factor that is fulfilled through teamwork behind every construction. The main issue is when it comes to construction management, and it determines the budget for a project. Cost estimation is mainly critical in every project development, as it also defines whether a project is affordable or not and based on a detailed forecast. Our expert Mechanical Estimating Services engineers and estimators can easily manage budgetary and feasibility preparations to make it under budget. Of course, contractors and owners worry about the financial impact of cost overruns and failing to complete a project. That’s the reason they devote their real-time and effort in estimating how much a project will ever cost before deciding to move forward. Mainly, cost estimation is also considered a time-sensitive process because the prices of different materials and employee wages are usually changing in time.
To estimate a project cost, MEP Estimators know the real scope of work. Then it generally comes to the traditional approach, which follows a few steps:
- Splitting up the work and breaking it down into different parts, like Mechanical, Electrical, and Plumbing. It is known as Work Breakdown Structures (WBS).
- Each particular structure will further divide into cost items, with different measurable quantities of materials, labour, and few tasks that include equipment costs.
- MEP engineers assign a general unit cost to each item that is based on the local prices
- A particular unit cost is multiplied by the help of required quantity to attain the total and the sum of the total cost for each specific department that yields to the final cost estimation.
A detailed project can easily create the cost estimations, following multiple estimates during the pre-design and standardized design phases. These particular estimations will get more fine accurate when the definition of a project increases. There are five steps to estimate a cost that is classified by the American society of professional estimators.
Magnitude Estimate’s order:
This particular level’s primary purpose is to examine the historical information based on some adjustments to match the project specifications. The study will determine the construction’s overall feasibility when the project is at the design stage and has not yet developed.
Schematic Design Estimate:
It is generally based on one budget level; this level helps make the cost estimation a little bit more accurate to the relevant schematics. The designer will mainly have the opportunity to avail various designs to explore the perfect fit for the project’s budget.
Design development Estimate:
Design development is the fourth level where budget conformance is confirmed thanks to the significant finalized design, the primary work scope, and the selected materials. A considerable amount of accuracy is added as a design documentation to get more details at this particular level.
At this level, estimates develop the project’s probable cost in result to prepare and submit a contract to an owner.
- Begin with elements of a cost estimate.
- Quantity take-off: Cost estimator will mainly define the necessary quantity of materials for the relevant project. This particular element is critical as the cost can generally get higher if it’s underestimated.
- Labour hours: More frequently, Labor hours are required based upon the estimator’s experience, and labor productivity variety is also considered.
- Labor rates: The central wages required for labour rates will get estimated based on current local data and extra hours. It takes into considerations if overtime work appears.
- Price of materials: The actual material price is considered a big part of the total cost estimate, keep in mind that depending on the market demand and supply, it will affect the material cost to fluctuate on time.
- The cost of equipment: Few equipment installations may require, and the price will include the equipment’s capacity, and they are going to be rented.
- Subcontractor quotes: Sometimes subcontracting is generally required, and the estimator of MEP Estimating should consider the material and equipment necessary for the contractor.
In conclusion, price estimation is mainly essential and can be more challenging for beginners and new engineers, however, MEP engineers can get better in time due to years of experience and hard work.