Construction

Why Speed and Accuracy Are Important in Construction Cost Estimation

Here are reasons why speed and accuracy are important in construction cost estimation, along with tips and strategies to achieve it.
Togal.AI
8 minutes

Construction cost estimation is a critical aspect of any construction project. Accuracy is crucial for project planning, budgeting, and resource allocation, while speed is critical for staying competitive in the industry and delivering in a timely manner.

For example, not submitting cost estimates and proposals on time could disqualify you from the bid. Alternatively, submitting your proposal after your competition could bury your proposal in hundreds of other bids. When it comes to accuracy, inaccurate numbers could easily lead to delays and cost overruns.

This means that contractors need to find ways to achieve both speed and accuracy in their cost estimations to stay ahead. One way is by using AI takeoff software to achieve up to 98% accurate material takeoffs in just under a minute.

Keep reading to explore the importance of speed and accuracy in construction cost estimation as well as the strategies for achieving both. 

Why is Speed So Important in Construction Cost Estimation?

Here are some of the reasons why speed is so important in cost estimation: 

  1. Time and Cost Savings

The longer it takes to complete a cost estimate, the more money it costs in terms of labor and overhead expenses. Completing an estimate quickly helps reduce these costs and opens opportunities to participate in more bids. For example, Coastal Construction estimators were able to send 10 bids on average and get $1 Million in savings just by using Togal.AI to speed up construction takeoffs and the cost-estimating process.

  1. Competitive Advantage

In a highly competitive industry like construction, being able to provide cost estimates quickly can help you stay ahead of the competition and win more bids. Requests for proposals (RFPs) often have tight deadlines, and being able to quickly complete a cost estimate can help you submit a competitive proposal on time and ahead of your competitors.

  1. Client Satisfaction and Increased Business

Clients want to work with contractors who are responsive and efficient. Providing cost estimates quickly helps build trust and credibility with clients. Also, when you can complete cost estimates fast, you can take on more work and grow your business.

Why is Accuracy so Important in Construction Cost Estimation?

Here are the reasons why accuracy is so important in construction cost estimation

  1. Proper Resource Allocation

Accurate cost estimates help ensure that the project is properly funded and that resources are used efficiently. Inaccurate cost estimates can result in costly mistakes, such as overestimating or underestimating the amount of materials needed for the project, leading to waste or delays.

It can lead to poor decision-making, ineffective resource allocation, and other issues that can impact project success.

  1. Building Trust and Credibility

Accurate cost estimation demonstrates a contractor's commitment to transparency and builds trust with clients and stakeholders. When contractors provide accurate cost estimates, clients can trust that they are provided with a fair and honest assessment of the project's cost.

  1. Reducing Risk

Accurate cost estimates help reduce the risk of cost overruns, delays, and other issues that can arise during the project. On the other hand, inaccurate cost estimates can lead to disputes, litigation, and other legal issues, which can be costly and time-consuming.

4 Ways to Achieve Speed and Accuracy in Construction Cost Estimation

Some of the most basic approaches for ensuring accuracy include attending site visits and pre-bid meetings. You can take a look at site conditions, take measurements, and inspect the topography, as well as ask questions and clarifications regarding the project scope.

As an estimator, it will help you consider factors that could impact the cost estimates that aren’t found in the RFP such as road access, site traffic, and soil conditions. Doing site visits can also help you assess potential risks and create contingencies to ensure they don’t cause delays and unforeseen costs.

Beyond implementing this basic, yet essential step, here are the other ways you can achieve speed and accuracy when it comes to your takeoff and construction cost estimation.

1. Utilize Construction Technology for Takeoff and Cost Estimation

Performing takeoffs and cost estimations involve many repetitive or tedious tasks, such as data entry, measurement, and calculation. These tasks can be time-consuming and prone to human error, which can negatively impact the accuracy and speed of your cost-estimating process. 

Here are two ways to address this: 

Use Specialized Calculators 

Specialized calculators can eliminate manual errors that often occur when calculating by hand. By streamlining the calculation process, estimators can complete estimates faster with reduced errors and inconsistencies, especially for complex calculations.

Below are some of the calculators that you can take advantage of: 

Calculator Description
Lumber Takeoff Calculator With this framing calculator, automatically calculate the number of studs, top and bottom plates, as well as sheets of plywood required to build a stud-framed wall.
Concrete Calculator Determine the amount of concrete needed for various commercial construction projects such as slabs, walls, footings, columns, and curbs.
Plumbing Calculator Get all the calculators you need to determine material costs for installing faucets, pipes, fixtures, and water heaters. This compilation of plumbing calculators will help you calculate rolling offsets, pipe volume, flow rate, and more.
Flooring Calculator Enter the width and length value, then click “calculate" to determine how much flooring material you need and the cost to install it.
Drywall Calculator Determine the room surface area, the net room area, the number of panels, and the total cost by simply inputting the room dimensions, door and window sizes, ceiling options, and panel type.
Roofing Calculator Check out various roofing-related tools that calculate pitch, specific roof materials, and geometric shapes.
Interior Wall Framing Cost Calculator Discover the top 8 interior wall framing cost calculators from Homewyse, Omni Calculator, and more.

Use AI Takeoff Software, Togal.AI

Despite not directly profiting from completing cost estimations, estimators still spend weeks, even months on this process due to manual takeoffs or the use of outdated digital takeoff processes. 

In fact, before using Togal.AI, the estimators at the Coastal Construction Miami office used to spend about 50% of their time on manual clicking, dragging, and tracing lines on a set of drawings to perform takeoff with on-premise software. Similarly, around 15 million estimators globally continue to spend around 20 hours a week doing the same. 

But with the help of AI-powered takeoff software, general contractors and their team of estimators can now automate up to 80% of the takeoff. Here’s how: 

Feature Description
Deep-Learning Technology With Togal.AI, make use of proprietary AI algorithms and machine learning to automatically detect, label, and measure project spaces, walls, and objects within seconds.
Time Savings Complete takeoffs in just under a minute and with just a few clicks. Through Togal.AI, save 14.5 hours per plan set and average 10 bids a month just like the estimators at Coastal Construction.
98% Accuracy in Takeoffs on Floor Plans While manual takeoffs can be tedious and prone to human error, with Togal.AI you can complete takeoffs in just under a minute with up to 99% accuracy.
Focus on Value-Generating Activities With Togal.AI’s efficiency, you can shift your focus toward value-generating activities such as scoping, value engineering, and identifying the right trade partners - helping you sharpen your competitive edge.

2. Standardize Estimating Processes

Use a Checklist

Establish standardized estimating processes to ensure consistency and accuracy across all estimates. One way of doing this is using a checklist. 

Here’s a sample checklist you can follow:

  • ☑️ Get familiar with the project scope and expectations
  • ☑️  Explore the site layout, soil quality, weather conditions, and existing geographical challenges.
  • ☑️ Attend the preconstruction meeting for any clarifications
  • ☑️ Use manual, digital, or AI-powered takeoff tools to analyze the project drawings.
  • ☑️ Build a comprehensive list of materials needed for the project.
  • ☑️ To account for the labor, determine the types of trade and the time needed to dedicate toward the project. 
  • ☑️ Determine any technologies or equipment needed. 
  • ☑️ Once you’ve determined the cost estimate, ensure all the requirements have been fulfilled.
  • ☑️ Craft your proposal to include branding and any format the project owners require.

Use Templates

Another way of doing this is by using templates to reduce the time required for data entry and ensure all the necessary information is included. 

Construction Proposal Template by Project Manager

Below is a sample construction proposal template from Project Manager

Construction Proposal Template

Source: Project Manager

Quantity Takeoff Sheet by QTO ESTIMATING

Download a takeoff sheet example complete with the list of materials needed, along with the breakdown of material quantity and total costs.

Quantity Takeoff Sheet

Source: QTO ESTIMATING

Construction Quantity Takeoff Sheet

Source: QTO ESTIMATING

Download a complete version of QTO ESTIMATING’s quantity takeoff sheet here.

Construction Cost Estimate Template by QTO ESTIMATING

Estimate various types of construction projects and different trades. With this template, you can also input material quantity, labor cost, equipment cost, and total cost.

Construction Cost Estimator sheet

Download a complete version of QTO ESTIMATING’s construction cost estimate template here.

Construction Cost Estimator Template by SmartSheet

Construction Cost Estimator Template

Download this simple cost estimator template here.

Construction Budget Template by Smartsheet

This template by Smartsheet can help you create a detailed project budget for both building and remodeling projects. 

Construction Budget Template sample

Download the spreadsheet here

3. Focus On Training and Education

To ensure the speed and accuracy of construction cost estimates, provide ongoing training and education to estimators and staff to increase their knowledge and skills. Encourage participation in industry associations to stay up-to-date on best practices and new technology. 

Some of the sites and forums you can follow include:

Construction Blogs Descriptions
Construction Dive Construction Dive helps you stay updated on industry stock prices and job trends, and read various commentaries on the future of the construction industry. Construction Dive also analyzes current events with in-depth articles.
ConstructConnect Blog ConstructConnect connects general contractors, subcontractors, and building product manufacturers. It also provides complete, accurate, and actionable construction data in the North American market. Read their blog to get access to commercial construction projects and the latest trends in commercial construction.
Togal.AI News Discover the latest trends in cost estimating and AI takeoff and estimating technology within the construction industry.
Capterra While Capterra is a review site for heaps of different industries, it has a section devoted to construction management solutions and cost-estimating software. You’ll be well-informed before investing in your next construction solution to streamline your processes.
Reddit (r/estimators) This free forum is a great platform for estimators and other construction professionals to ask questions, network, and share methods, tools, tips, and even experiences.
American Society of Professional Estimators (ASPE) ASPE is a great resource for construction estimators who needs certification and online education. Through the membership, you can also network and build lasting professional relationships with leading estimators.

 4. Improve Communication and Collaboration

Accurate and speedy cost estimation depends on effective communication and collaboration among all project stakeholders. To achieve this, you need to follow some best practices that will ensure that everyone has access to the necessary information, can provide feedback, and can work together smoothly. 

These best practices include establishing clear lines of communication, setting expectations, fostering a culture of openness and transparency, scheduling regular check-ins, and using collaboration tools.

Some of the collaboration tools you can use include:

Tool Description
Togal.AI Simultaneously work and collaborate on a single drawing through the web-based platform, boosting overall productivity.
Accessible from any device with internet access.
Work on takeoffs and complete proposals from any location with ease which is particularly important for today’s more flexible work environment.
Share your takeoff easier than ever with one click, allowing multiple members of one team to work on the same takeoff.
Bluebeam Revu PDF editing software that is commonly used in the construction industry.
Includes document sharing and easy real-time collaboration on project plans and documents
Includes features such as markup tools, document comparison, and project organization.
Procore Cloud-based construction management software
Enables easy collaboration among all stakeholders through messaging and commenting tools.
Includes features such as document management, project scheduling, and financial management.

Get Up to 98% Accurate Takeoffs in Just Under a Minute With Togal.AI

In the highly competitive construction industry, achieving both speed and accuracy in cost estimation is crucial. Being able to provide cost estimates quickly can help contractors win more bids, increase their bottom line, and build trust and credibility with clients. On the other hand, inaccurate cost estimates can result in costly mistakes, disputes, and legal issues.

Fortunately, there are strategies and ways to achieve both speed and accuracy in cost estimation. Utilizing technology such as AI takeoff software like Togal.AI can increase the speed and accuracy of takeoffs and cost estimation, allowing contractors to achieve up to 98% accurate takeoffs in just under a minute. Standardizing estimating processes, providing ongoing training and education, improving communication and collaboration, and conducting post-project reviews can also contribute to achieving both speed and accuracy in cost estimation.

By incorporating these strategies and utilizing tools like Togal.AI, contractors, and estimators can reduce costs, win more bids, build trust and credibility with clients, reduce risks, and deliver successful projects.

Want to streamline your construction takeoff services? Explore how Togal.AI can streamline the takeoff construction process. Try Togal, book a custom demo, or get Togal.AI today.

Book a Demo of Togal.AI

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Why Speed and Accuracy Are Important in Construction Cost Estimation

May 4, 2023
Togal.AI
8 minutes

Construction cost estimation is a critical aspect of any construction project. Accuracy is crucial for project planning, budgeting, and resource allocation, while speed is critical for staying competitive in the industry and delivering in a timely manner.

For example, not submitting cost estimates and proposals on time could disqualify you from the bid. Alternatively, submitting your proposal after your competition could bury your proposal in hundreds of other bids. When it comes to accuracy, inaccurate numbers could easily lead to delays and cost overruns.

This means that contractors need to find ways to achieve both speed and accuracy in their cost estimations to stay ahead. One way is by using AI takeoff software to achieve up to 98% accurate material takeoffs in just under a minute.

Keep reading to explore the importance of speed and accuracy in construction cost estimation as well as the strategies for achieving both. 

Why is Speed So Important in Construction Cost Estimation?

Here are some of the reasons why speed is so important in cost estimation: 

  1. Time and Cost Savings

The longer it takes to complete a cost estimate, the more money it costs in terms of labor and overhead expenses. Completing an estimate quickly helps reduce these costs and opens opportunities to participate in more bids. For example, Coastal Construction estimators were able to send 10 bids on average and get $1 Million in savings just by using Togal.AI to speed up construction takeoffs and the cost-estimating process.

  1. Competitive Advantage

In a highly competitive industry like construction, being able to provide cost estimates quickly can help you stay ahead of the competition and win more bids. Requests for proposals (RFPs) often have tight deadlines, and being able to quickly complete a cost estimate can help you submit a competitive proposal on time and ahead of your competitors.

  1. Client Satisfaction and Increased Business

Clients want to work with contractors who are responsive and efficient. Providing cost estimates quickly helps build trust and credibility with clients. Also, when you can complete cost estimates fast, you can take on more work and grow your business.

Why is Accuracy so Important in Construction Cost Estimation?

Here are the reasons why accuracy is so important in construction cost estimation

  1. Proper Resource Allocation

Accurate cost estimates help ensure that the project is properly funded and that resources are used efficiently. Inaccurate cost estimates can result in costly mistakes, such as overestimating or underestimating the amount of materials needed for the project, leading to waste or delays.

It can lead to poor decision-making, ineffective resource allocation, and other issues that can impact project success.

  1. Building Trust and Credibility

Accurate cost estimation demonstrates a contractor's commitment to transparency and builds trust with clients and stakeholders. When contractors provide accurate cost estimates, clients can trust that they are provided with a fair and honest assessment of the project's cost.

  1. Reducing Risk

Accurate cost estimates help reduce the risk of cost overruns, delays, and other issues that can arise during the project. On the other hand, inaccurate cost estimates can lead to disputes, litigation, and other legal issues, which can be costly and time-consuming.

4 Ways to Achieve Speed and Accuracy in Construction Cost Estimation

Some of the most basic approaches for ensuring accuracy include attending site visits and pre-bid meetings. You can take a look at site conditions, take measurements, and inspect the topography, as well as ask questions and clarifications regarding the project scope.

As an estimator, it will help you consider factors that could impact the cost estimates that aren’t found in the RFP such as road access, site traffic, and soil conditions. Doing site visits can also help you assess potential risks and create contingencies to ensure they don’t cause delays and unforeseen costs.

Beyond implementing this basic, yet essential step, here are the other ways you can achieve speed and accuracy when it comes to your takeoff and construction cost estimation.

1. Utilize Construction Technology for Takeoff and Cost Estimation

Performing takeoffs and cost estimations involve many repetitive or tedious tasks, such as data entry, measurement, and calculation. These tasks can be time-consuming and prone to human error, which can negatively impact the accuracy and speed of your cost-estimating process. 

Here are two ways to address this: 

Use Specialized Calculators 

Specialized calculators can eliminate manual errors that often occur when calculating by hand. By streamlining the calculation process, estimators can complete estimates faster with reduced errors and inconsistencies, especially for complex calculations.

Below are some of the calculators that you can take advantage of: 

Calculator Description
Lumber Takeoff Calculator With this framing calculator, automatically calculate the number of studs, top and bottom plates, as well as sheets of plywood required to build a stud-framed wall.
Concrete Calculator Determine the amount of concrete needed for various commercial construction projects such as slabs, walls, footings, columns, and curbs.
Plumbing Calculator Get all the calculators you need to determine material costs for installing faucets, pipes, fixtures, and water heaters. This compilation of plumbing calculators will help you calculate rolling offsets, pipe volume, flow rate, and more.
Flooring Calculator Enter the width and length value, then click “calculate" to determine how much flooring material you need and the cost to install it.
Drywall Calculator Determine the room surface area, the net room area, the number of panels, and the total cost by simply inputting the room dimensions, door and window sizes, ceiling options, and panel type.
Roofing Calculator Check out various roofing-related tools that calculate pitch, specific roof materials, and geometric shapes.
Interior Wall Framing Cost Calculator Discover the top 8 interior wall framing cost calculators from Homewyse, Omni Calculator, and more.

Use AI Takeoff Software, Togal.AI

Despite not directly profiting from completing cost estimations, estimators still spend weeks, even months on this process due to manual takeoffs or the use of outdated digital takeoff processes. 

In fact, before using Togal.AI, the estimators at the Coastal Construction Miami office used to spend about 50% of their time on manual clicking, dragging, and tracing lines on a set of drawings to perform takeoff with on-premise software. Similarly, around 15 million estimators globally continue to spend around 20 hours a week doing the same. 

But with the help of AI-powered takeoff software, general contractors and their team of estimators can now automate up to 80% of the takeoff. Here’s how: 

Feature Description
Deep-Learning Technology With Togal.AI, make use of proprietary AI algorithms and machine learning to automatically detect, label, and measure project spaces, walls, and objects within seconds.
Time Savings Complete takeoffs in just under a minute and with just a few clicks. Through Togal.AI, save 14.5 hours per plan set and average 10 bids a month just like the estimators at Coastal Construction.
98% Accuracy in Takeoffs on Floor Plans While manual takeoffs can be tedious and prone to human error, with Togal.AI you can complete takeoffs in just under a minute with up to 99% accuracy.
Focus on Value-Generating Activities With Togal.AI’s efficiency, you can shift your focus toward value-generating activities such as scoping, value engineering, and identifying the right trade partners - helping you sharpen your competitive edge.

2. Standardize Estimating Processes

Use a Checklist

Establish standardized estimating processes to ensure consistency and accuracy across all estimates. One way of doing this is using a checklist. 

Here’s a sample checklist you can follow:

  • ☑️ Get familiar with the project scope and expectations
  • ☑️  Explore the site layout, soil quality, weather conditions, and existing geographical challenges.
  • ☑️ Attend the preconstruction meeting for any clarifications
  • ☑️ Use manual, digital, or AI-powered takeoff tools to analyze the project drawings.
  • ☑️ Build a comprehensive list of materials needed for the project.
  • ☑️ To account for the labor, determine the types of trade and the time needed to dedicate toward the project. 
  • ☑️ Determine any technologies or equipment needed. 
  • ☑️ Once you’ve determined the cost estimate, ensure all the requirements have been fulfilled.
  • ☑️ Craft your proposal to include branding and any format the project owners require.

Use Templates

Another way of doing this is by using templates to reduce the time required for data entry and ensure all the necessary information is included. 

Construction Proposal Template by Project Manager

Below is a sample construction proposal template from Project Manager

Construction Proposal Template

Source: Project Manager

Quantity Takeoff Sheet by QTO ESTIMATING

Download a takeoff sheet example complete with the list of materials needed, along with the breakdown of material quantity and total costs.

Quantity Takeoff Sheet

Source: QTO ESTIMATING

Construction Quantity Takeoff Sheet

Source: QTO ESTIMATING

Download a complete version of QTO ESTIMATING’s quantity takeoff sheet here.

Construction Cost Estimate Template by QTO ESTIMATING

Estimate various types of construction projects and different trades. With this template, you can also input material quantity, labor cost, equipment cost, and total cost.

Construction Cost Estimator sheet

Download a complete version of QTO ESTIMATING’s construction cost estimate template here.

Construction Cost Estimator Template by SmartSheet

Construction Cost Estimator Template

Download this simple cost estimator template here.

Construction Budget Template by Smartsheet

This template by Smartsheet can help you create a detailed project budget for both building and remodeling projects. 

Construction Budget Template sample

Download the spreadsheet here

3. Focus On Training and Education

To ensure the speed and accuracy of construction cost estimates, provide ongoing training and education to estimators and staff to increase their knowledge and skills. Encourage participation in industry associations to stay up-to-date on best practices and new technology. 

Some of the sites and forums you can follow include:

Construction Blogs Descriptions
Construction Dive Construction Dive helps you stay updated on industry stock prices and job trends, and read various commentaries on the future of the construction industry. Construction Dive also analyzes current events with in-depth articles.
ConstructConnect Blog ConstructConnect connects general contractors, subcontractors, and building product manufacturers. It also provides complete, accurate, and actionable construction data in the North American market. Read their blog to get access to commercial construction projects and the latest trends in commercial construction.
Togal.AI News Discover the latest trends in cost estimating and AI takeoff and estimating technology within the construction industry.
Capterra While Capterra is a review site for heaps of different industries, it has a section devoted to construction management solutions and cost-estimating software. You’ll be well-informed before investing in your next construction solution to streamline your processes.
Reddit (r/estimators) This free forum is a great platform for estimators and other construction professionals to ask questions, network, and share methods, tools, tips, and even experiences.
American Society of Professional Estimators (ASPE) ASPE is a great resource for construction estimators who needs certification and online education. Through the membership, you can also network and build lasting professional relationships with leading estimators.

 4. Improve Communication and Collaboration

Accurate and speedy cost estimation depends on effective communication and collaboration among all project stakeholders. To achieve this, you need to follow some best practices that will ensure that everyone has access to the necessary information, can provide feedback, and can work together smoothly. 

These best practices include establishing clear lines of communication, setting expectations, fostering a culture of openness and transparency, scheduling regular check-ins, and using collaboration tools.

Some of the collaboration tools you can use include:

Tool Description
Togal.AI Simultaneously work and collaborate on a single drawing through the web-based platform, boosting overall productivity.
Accessible from any device with internet access.
Work on takeoffs and complete proposals from any location with ease which is particularly important for today’s more flexible work environment.
Share your takeoff easier than ever with one click, allowing multiple members of one team to work on the same takeoff.
Bluebeam Revu PDF editing software that is commonly used in the construction industry.
Includes document sharing and easy real-time collaboration on project plans and documents
Includes features such as markup tools, document comparison, and project organization.
Procore Cloud-based construction management software
Enables easy collaboration among all stakeholders through messaging and commenting tools.
Includes features such as document management, project scheduling, and financial management.

Get Up to 98% Accurate Takeoffs in Just Under a Minute With Togal.AI

In the highly competitive construction industry, achieving both speed and accuracy in cost estimation is crucial. Being able to provide cost estimates quickly can help contractors win more bids, increase their bottom line, and build trust and credibility with clients. On the other hand, inaccurate cost estimates can result in costly mistakes, disputes, and legal issues.

Fortunately, there are strategies and ways to achieve both speed and accuracy in cost estimation. Utilizing technology such as AI takeoff software like Togal.AI can increase the speed and accuracy of takeoffs and cost estimation, allowing contractors to achieve up to 98% accurate takeoffs in just under a minute. Standardizing estimating processes, providing ongoing training and education, improving communication and collaboration, and conducting post-project reviews can also contribute to achieving both speed and accuracy in cost estimation.

By incorporating these strategies and utilizing tools like Togal.AI, contractors, and estimators can reduce costs, win more bids, build trust and credibility with clients, reduce risks, and deliver successful projects.

Want to streamline your construction takeoff services? Explore how Togal.AI can streamline the takeoff construction process. Try Togal, book a custom demo, or get Togal.AI today.

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