Construction Cost Estimation
Cost-Effective Measure
Be on target with your budget constraints by outsourcing your construction cost estimates with our experienced professionals.
Benchmark Standard
Use our construction cost estimation as your point of reference for value-engineering when you source multiple bids from contractors.
Control Point
Track the fixed elements and variables of your estimates effectively for healthy cash-flow and better profits.
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Experts in Construction Cost Estimation
NY Lead the Forefront in Construction Cost Estimation
Aside from the technical compliance or design criteria required to erect buildings that are strong and functional in style, one essential aspect that’s critical to your building project is its commercial compliance. In other words, construction cost estimates.
At NY Engineers, we recognize how healthy cash flow can be the life blood for your building project. Whatever market sector your building project belongs to, our specialized engineers and estimators offer you their expertise in calculating competitive bids, agreeable on either the owner or contractor’s end.
Inaccuracy is often the culprit of why building projects are overestimated or underestimated. We provide you in-depth details below of this critical issue at hand, and how this can be mitigated. Generally, there are dedicated sectors in the industry who provide construction cost estimation services, but what makes us different from the market is our touch of engineering expertise. We aim for the balance between overestimation and underestimation.
At New York Engineers, we walk our talk. We lead the forefront in construction cost estimation.
What You Can Get From Construction Cost Estimation
For simple residential projects such as bungalow houses, construction cost estimation can be done from the design-builder’s end. However, large complex projects reeling in complexity say otherwise.
We drill you in on the benefits and advantages of construction cost estimation, whether you go the do-it-yourself route or outsource it to a professional estimator:
- Track direct and indirect costs on all phases of the building’s project life cycle
From pre-design to turnover, all building project stakeholders are bombarded with costs showing up incessantly. This could range from fixed inputs to variable factors which can decrease or hit your margins. From high to low, brace for impact with our proficiency in construction cost estimation.
- Collect insights on multiple contractor bids with value-engineering approach
Clients or owners have a general consensus on how architecture, engineering and construction (AEC) industry works, but lack the legal and technical expertise to do the job. Hence, the need for professionals such as architects and engineers. Through our construction cost estimation, our team of engineers and estimators can help you weed out the low-value, overpriced bids from the high-value, fair-priced bids.
- Set the ground for future bids using competitive construction cost estimation as a barometer
In large mixed-use projects where there’s an assortment of building occupancies, having a baseline reference on a competitive construction cost estimation can lay the groundwork for your upcoming bids. Although building occupancies are located in a single contextual site, construction cost estimation still differs for every sector but with a yardstick in place, quality and cost control are implemented.
- Improve cash flow strategies in construction by identifying assets and liabilities through audits
Set the records straight on your audits and identify what brings value to you and what pulls money out of your pocket when you compare your actual construction expenses with our cost-effective construction cost estimations. Compare the discrepancy and zero in on the liabilities, so you can effectively gauge your cash flow in construction.
- Eliminate expense-heavy variables for better profits
Whether you belong to the client or contractor's side, eliminating uncontrollable cost factors without compromising quality should be your top item. For instance, opting for the cheaper but quality steel in your local market, rather than importing goods imposed with tariff can be the wiser choice. Put inflation in the equation, and you have materials taking a hit on your potential revenues. Avoid these common pitfalls with our construction cost estimation.
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Precision Aspects We Consider In Construction Cost Estimation
When managing the costs of small-scale to large-scale projects, the difference between the actual expenses and estimated costs can often give you a clue if you have positive or negative cash flow in construction. Such negligence on cost management can often spell the end for your building project. At New York Engineers, we show you the learning curve for generating accurate construction cost estimation.
Let our certified engineers and estimators list the critical items for the pricing breakdown:
- Building type and occupancy
- Building square footage
- Market sector
- Trade involvement
- Quantity take-offs
- Basic material costs
- Labor hour, rate and allowances
- Direct supervision charges
- Equipment costs
- Fabrication costs
- Material testing
- Subcontractor quotes
- Indirect costs
- Bonds
- Capital costs
- Operations and maintenance (O&M) costs
Variable Factors Influencing Your Construction Cost Estimation
Project to project, each construction cost estimation is different. In the previous section, criteria items were considered for consistency and efficiency, but these can be calibrated especially when unforeseeable factors in construction are inevitable.
Some fluctuating factors that can escalate or deflate your construction cost estimation include:
- Site logistics
Failure to integrate site logistics at the onset of construction cost estimation can be disastrous. Indirect costs, such as delivery and transportation might seem insignificant at first, but even a slight miscalculation on this item can hit you for real impact particularly when actual construction commences. Whether your site is in an urban area or remote location, site logistics can thoroughly affect your schedule, quality and cost constraints.
- Inflation
History shows that material prices were never the same a few decades ago as compared currently. All because of one single factor: inflation. This should be factored in as material costs can be volatile in the global market place, and the least that you want to happen when your construction project breaks ground is loss of purchasing power compounded with futile overspending — resulting in undesirable financial losses.
- Demand and supply of labor and materials
The law of abundance and scarcity is simple, and as such, can also apply to your construction cost estimation. Time-related or seasonal variations can often affect the demand of labor and materials, and sometimes the rates go up higher than necessary as there’s a scarce supply of said items. Here’s the professional advice of our experienced engineers and estimators: factor in contingency for hedging to offset any potential losses.
Five Levels of Construction Cost Estimation
Like any other building project dealing with laws, standards and codes, we take reference from American Society of Professional Estimators to guide us on how we can best provide you with construction cost estimation.
From pre-design to pre-construction, each level in the building project's life cycle calls for an estimate, namely:
- Level 1: Order of Magnitude Estimate
Call this the pre-design construction cost estimation. Your building project is on its early design phase, and the architect will make a general estimate based on the overall feasibility of your construction. We take these factors into account for your cost overview: market value, site location, unit price of materials, building occupancy, space allocations and more.
- Level 2: Schematic Design Estimate
From space allocations to bubble diagrams, concepts are slowly taking form as the architect concretizes your ideas in line with the applicable design considerations. Definitive construction cost estimation clearer than previous level is underway now for your building project.
- Level 3: Design Development Estimate
Architects dealing with medium to large-scale projects draw on the consultants' expertise in different building disciplines. Here's where New York Engineers enter. Generally, our specialized team of engineers will design the MEPF aspect of your architectural floor plans, elevations and sections through 2D CAD or 3D BIM software.
BIM is more efficient, as estimates can already be incorporated into the material properties. Afterwards, construction cost estimation from our expert estimators will be in place as you review the cost changes from the previous stages.
- Level 4: Construction Document Estimate
As your building project gears up traction for construction, higher level of details are now present in the construction cost estimation. Taking reference from the construction documents and specifications, our proficient engineers can now show you precise calculations on your fixed and variable input data such as labor rate, materials and equipment costs – giving you a comprehensive overview on your project developmental costs.
- Level 5: Bid Estimate
Contractors are now up for bidding process, where bid price offered to the client is commensurate to the bid estimate from the construction documents. Ultimately, client's discretion will be the final word but as professionals committed to your building project, we help you level all the contractor bids for your advantage.
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Dealing With Construction Cost Estimation And Building Systems
Designing and constructing complex building projects can have an extensive magnitude.
As such, building systems are in place not only for order and simplification, but also for easier evaluation on the technical and commercial compliance of each division in your building project. Such building systems include:
- Substructure
- Shell
- Services
- Equipment and furnishings
- Interiors
- Special construction
- Building site work
Each division calls for our distinctive engineering skills. Civil engineers handle the critical path item of substructure and shell, while MEPF engineers oversee services. All these engineering sub-disciplines have sector-specific functions, but all building systems have a starting point for cost optimization: construction cost estimation fares better with engineering expertise than the lack of it.
Expertise is where New York Engineers excel.
How Accuracy in Construction Cost Estimation Can Maximize Your Returns
As we strive to be experts in our field, fostering long-term business relationships with stakeholders also sits on top of our goals. How do we do that, exactly? We simplify the answer for you in three words: earned value management.
Take construction cost estimation as a perfect example of this principle. Inaccurate estimates can make or break the profit margins of the client or the contractor, which have two probable scenarios:
- Overestimation
Client unnecessarily overpays, while contractor can lose out on competitive bids due to overpricing.
- Underestimation
Contingencies may be insufficient due to unforeseen expenses, while contractor may leave the project unfinished, or worst-case scenario, file for bankruptcy.
At New York Engineers, we make opposite sides of the spectrum meet. Construction cost estimation will never be 100% accurate, but there's no place for mediocrity with us. We aim close for a bull's eye target on precision — putting a halt on small errors which when magnified, can cost you millions of dollars in discrepancy.
Client or contractor's end, you are guaranteed that overestimation or underestimation won't eat away at your profits. In the end, your maximum return on investment leads you back to square one with our accurate expertise and experience on construction cost estimation.
Why Pick NY Engineers for Your Construction Cost Estimation
Stop leaving money on the table and win more projects with our expert construction cost estimation. Our highly experienced engineers and estimators always err on the side of caution – giving you the surety that you will hit the right balance on cost control from wherever stakeholder’s end you are.
While we utilize advanced technology to aid in the efficiency of construction cost estimation, in the end it all boils down to this: technology can only go so far without an expert manning behind it. The innate ability to interpret construction documents, weave out through all the complex numerical data, and organize them into comprehensive sets of cost estimates with variable factors in place, all calls for our specialty on construction cost estimation.
With more experience, you get less mistakes. At New York Engineers, we help you set up for success. Discover how you can get the competitive edge and seal the deal on your next construction project with our industry-specific portfolio on construction cost estimation.
