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Use multiple sources
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Adjust for location
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Update regularly
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Here’s what else to consider
Finding reliable construction cost data is essential for accurate estimating and bidding of construction projects. Cost data can vary depending on factors such as location, material availability, labor rates, market conditions, and project specifications. How can you source and use cost data that reflects the reality of your construction business? Here are some tips to help you find and apply reliable construction cost data.
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- Peter Cholakis Improve facilities repair, renovation, maintenance, and new build outcomes and reduce costs 1
- Vince Garcia Proposal Coordinator @ TAMAS Projects | Procurement, Project Control 1
1 Use multiple sources
One of the best ways to find reliable construction cost data is to use multiple sources and compare them. You can use online databases, publications, trade associations, suppliers, subcontractors, and your own historical records to gather cost information. However, you should not rely on any single source blindly, as it may be outdated, inaccurate, or biased. You should always verify and cross-check the data you find with other sources and your own experience.
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- Peter Cholakis Improve facilities repair, renovation, maintenance, and new build outcomes and reduce costs
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Objective, current, and granular locally research cost data should always be used prior the the procurement of repair, renovation, maintenance, or new build services. Sufficient cost visibility is not provided by national average cost data, location factoring, economic factoring, historical cost data, or assembly cost data. 4bt.us
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Certainly, it's insightful when you have data from multiple sources. Not only it reflects behind-the-scene reality of individual supplier but also provides you a bird's-eye view of the suppliers world. Different pricing for a high technology item from popular locations like Japan, South Korea, Western Europe & North America and now China provide you a chance to make effort to explore the optimum product instead of the best product. Getting data from multiple sources also protects one's interests from single source conditions where supplier or the service provider unwillingly tosses a price against the inquiry while having practically no appetite for the job.
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2 Adjust for location
Another important factor to consider when finding reliable construction cost data is the location of your project. Different regions and markets have different costs for materials, labor, equipment, transportation, taxes, and overhead. You should adjust the cost data you find to reflect the local conditions and availability of resources. You can use location factors, cost indexes, or regional modifiers to adjust the cost data. Alternatively, you can contact local suppliers, subcontractors, or other contractors to get more accurate and up-to-date cost information.
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Proposals from trade contractors typically gives you the trade specific granularity needed to assure pricing. We all need to be reviewing the trade specific scopes and ensuring completeness. Timing is a factor as well, since costs tend to increase once the subcontractors have booked a backlog.
UnhelpfulLike Like Celebrate Support Love Insightful Funny 4 - Peter Cholakis Improve facilities repair, renovation, maintenance, and new build outcomes and reduce costs
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Wrong. The use of location factors, cost indexes, regional/area cost factors does NOT provide sufficient cost visibility to proceed to procurement. Exclusively contacting local contractors, etc. also is insufficient. 4bt.us
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3 Update regularly
Construction cost data can change rapidly due to fluctuations in supply and demand, inflation, regulations, and other external factors. You should update your cost data regularly to keep up with the current market trends and avoid underestimating or overestimating your project costs. You should also monitor the changes in cost data over time and analyze how they affect your profitability and competitiveness. You can use online tools, newsletters, reports, or alerts to track and update your cost data.
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Another element to keep in mind is making sure the material specified in the specs is still being manufactured…there have been instances where manufacturers run out of business or no longer manufacture certain models. This can cause wide fluctuations in project materials costs when the newer models are quoted.ASo making sure equipment model specified (both designed and approved) are still current and verifying material pricing with manufacturers are additional tools to utilize when validating cost from various sources.
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4 Customize for project
Finally, you should customize your cost data for each specific project you are estimating or bidding. Every project has its own unique requirements, specifications, design, scope, quality, schedule, and risks. You should adjust your cost data to account for these factors and reflect the reality of your project. You can use unit costs, assemblies, or models to estimate your project costs based on the project details. You can also use modifiers, contingencies, or allowances to account for uncertainties or variations in your project.
Finding reliable construction cost data is not easy, but it is crucial for successful construction estimating and bidding. By using multiple sources, adjusting for location, updating regularly, and customizing for project, you can find and use cost data that suits your construction business and helps you win more projects.
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5 Here’s what else to consider
This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?
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- Vince Garcia Proposal Coordinator @ TAMAS Projects | Procurement, Project Control
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It can be difficult to find reliable data on construction costs, particularly for large or complex projects. The cost of construction can vary greatly depending on various factors such as location, design, materials, labor, regulations, and market conditions. To obtain accurate and reliable cost data, it is advisable to consult a variety of sources including professional estimators, contractors, suppliers, industry publications, and online databases. It is also important to regularly update and adjust the cost data to account for inflation, changes in scope, and unforeseen circ*mstances.
UnhelpfulLike Like Celebrate Support Love Insightful Funny 1 - Abdelhafid BOUKHOULDA Senior cost estimator
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It takes time and experience to collect data for your upcoming projects, also it's hard to use the exact data for other projects, it varies from many aspects.The key for a good and exact cost, you breakdown your project in three major groups. Materials, labor, and management.Materials: send submission to the suppliers to get all the prices that you need.Labor: from your previous projects, hand power, and machinery... Management: saving money and time.
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