The Challenges Commercial Estimators Face Vs Residential Estimators
If you have stumbled onto this blog, it means you are looking to learn about the difficulties faced by a residential and a Commercial Estimator.
Estimating the cost for any type of building comes with its challenges. Several factors can hinder the precision of a financial budget. And what use does an inaccurate budget have?
Get ahead of challenges by learning how you can overcome them. Let’s get into it!
GET AHEAD OF THE CHALLENGES BY LEARNING ABOUT COMMON HURDLES THAT RESIDENTIAL AND COMMERCIAL ESTIMATOR FACE AND DISCOVER THEIR SOLUTIONS TO ENHANCE ACCURACY!
Role of a Cost Estimator
- Accurate material takeoff
- Calculation of materials, labour and equipment cost
- Calculation of indirect expenses i.e. permits, utilities.
- Timely completion of the project
- Ensure proper planning and execution
- Enhanced cash flow
- Efficient resource allocation
Common Challenges Faced by a Residential and a Commercial Estimator
Before getting to the differences, let’s look at some of the common challenges faced by a residential and a commercial estimator.
Unforeseen Site Conditions
The construction site may present its challenges. Sometimes the terrains are easy to work on, other times they are not. The actual condition of the site may turn out to be different than expected. There could be hidden underground obstacles or poor condition of the soil
Solution:
- Conduct multiple visits to get familiar with the site conditions.
- Use drones to get a complete picture
- Conduct environmental assessments
Price Fluctuations
The construction market is highly unstable and prices are fluctuating daily. It can be exhausting to chase a moving target. Furthermore, it leads to inaccurate cost projections, harming the construction project and the estimator’s reputation.
Solution:
- Visit the marketplace yourself
- Lock in prices with suppliers
- Readjust your budget
Limited Timeframes
Time constraint is another challenge faced by both a commercial and a Residential Estimator. Time is a valuable resource. An unnecessary delay will not only affect the completion time but it will also increase the expenses.
Solution:
- Use historical data
- Work in teams and divide the work
- Use advanced software such as Planswift or RS Means
Availability of Information
Insufficient information can cause real problems. Estimators need data to draw out cost predictions. If the data is limited, then the chances of inaccuracy increases.
Solution:
- Communicate with clients and stakeholders
- Use historical data
- Develop a contingency plan
- Use industry-standard benchmarks
Specific Challenges Faced in Residential Projects
Customization and Unique Project Requirements
One of the most time-consuming challenges faced by Single Family Residential Estimators is the specific requirements of clients. Residential projects are more prone to customization.
Solution:
- Collaborate with designers and architects
- Divide the project into smaller parts
- Stay up to date with new designs and types of materials
More Chances of Project Variability
Residential projects are also more prone to changes. Indecisiveness is more commonly faced by Multi Family Residential Estimators, as there are more stakeholders involved. Client may change his mind in-between the construction project. If the objectives keep changing, it will have a negative impact on the estimation process.
Solution:
- Clearly define goals at the start
- Be adaptable and flexible
- Develop a contingency plan
Unrealistic Expectations of Client
In some cases, the client’s budget and demand may not align with each other. Impractical demands can lead to a tassel between estimator and client.
Solution:
- Clearly communicate
- Aid decision making process
- Provide multiple estimates (low to high)
- Specific Challenges Faced in Commercial Building Estimates
Size of the Project
It is understandable that a commercial project is larger. Therefore the number of complex tasks will also be greater. The scalability poses as a troublesome task in Commercial Building Estimates
Solution:
- Comprehensively analyse the whole scope of the project
- Use drones imagery
- Use advanced cost estimating software
Higher Stakes
At a commercial project, there are higher stakes. It can be nerve wrecking for the estimator to deal with all the pressure and present an accurate estimate.
Solution:
- Use stress relief techniques
- Organise your tasks
- Seek advice from mentors
Collaborating with Multiple Stakeholders
Managing the project can be hard for a commercial estimator. A commercial project usually involves multiple investors and stakeholders. Coordinating and communication might become a problem.
Solution:
- Use collaborative software
- Keep everyone in the loop
- Document everything
- Develop contingencies, use technology, increase communication to stay ahead of every problem!
GET AHEAD OF THE CHALLENGES BY LEARNING ABOUT COMMON HURDLES THAT RESIDENTIAL AND COMMERCIAL ESTIMATOR FACE AND DISCOVER THEIR SOLUTIONS TO ENHANCE ACCURACY!
To Conclude!
In the end, a residential and Commercial Estimator is responsible to counter any challenge that might cause any hindrance in the project. It is necessary to understand the common or specific differences between commercial and residential projects. As this leads to effective project management. This article points out some of the significant key challenges and their solutions for residential and commercial professionals. This guide will help you navigate through the challenges and provide the most optimal solution. Thus, making sure that the estimates are accurate and aligned with the actual costs.
