Frequently Asked Questions
How Do You Calculate or Estimate Construction Costs?
To accurately estimate your construction costs, you must first determine specific aspects of your construction project, like schedule based unit prices, assembly based unit prices, and labor costs. This will give you a baseline understanding of what it will cost you to complete the project.
From there, apply a markup to your costs that will yield profits after any expenses. This will ensure that the project is profitable and comes in under budget. Make sure to track your estimates to ensure that your construction project is hitting under or on budget during every phase of the project.
What Are the Key Steps in Managing a Construction Project?
First, create a comprehensive project plan. Define roles and responsibilities for each phase of the project, and assign specific tasks.
Develop a clear project scope and baselines to assess your project plan for success. Create a schedule for the project and identify cost baselines that should be hit at each part of the project timeline. Analyze project risks and identify specific mitigation plans for any potential risks.
After all of these variables and project details have been established, hold a kickoff meeting to communicate the construction project plan to all involved team members and key stakeholders.
At this time, the procurement phase can begin where the project team obtains all necessary equipment, materials, and resources needed to complete the project.
The construction phase comes after the planning process and kickoff meeting are complete. The team must get ready for construction by setting up storage facilities, securing the site, and developing a handling and safety plan.
Once construction is complete, the team must commission the project by testing all new systems and equipment, and training personnel to use the updates appropriately. The owner or key stakeholder in the project can then occupy the space and decide whether or not the project meets the expectations that were outlined in the original contract.
The final phase of a construction project is project closeout, where the team completes any outstanding contractual obligations. The team may use a project punch list to identify and complete any tasks that didn’t get completed during the original project. A post-project review outlines all lessons learned and archives any project documents.