3 Often-Overlooked Construction Costs

A construction project may take months or even years to complete, and in that timeframe, company leaders are responsible for numerous moving parts. With strategic planning and advanced construction-based software, construction professionals can effectively manage each component of their projects and proactively reduce errors, delays, miscommunication, and cost overruns. Understanding often-overlooked construction costs is an essential part of preventing projects from getting derailed.

When it comes to managing long-term projects, the original plan functions primarily as a guideline because construction projects are constantly changing as the project progresses. However, a successful project begins with an accurate estimate, so consider these often-overlooked construction costs when calculating your overall project expenses. 

  1. Specialty Workers with Differing Rates

When determining the budget for a construction project, you must consider that each skilled laborer or experienced tradesperson will charge a different rate. These rates will align with their area of expertise and experience level. For instance, electricians and HVAC professionals have entirely different hourly rates. It’s essential to itemize specialty workers to ensure that you can create an accurate estimate for each project.

  1. Units of Measure for Supplies

Discerning the proper amount of supplies necessary for the successful completion of a project can be challenging, especially before stepping foot on the construction site. Perform your due diligence, and survey the site to accurately assess the supplies you will need to complete each project. Failing to do this can lead to cost overruns, so consider visiting the site in person before finalizing your estimate. Remember that you may not be able to estimate every expense, but neglecting to count small costs can cause significant issues later on. Create a financial cushion to prepare you for unexpected expenses once the project begins.

  1. Maintaining or Replacing Equipment

Even the most high-quality equipment will eventually malfunction from constant use. However, if your equipment falls apart in the middle of a project, you will need to cover expenses related to repairing or replacing machinery at the last minute. Before beginning a construction project, you should know whether or not each piece of equipment is close to the end of its useful life. You can use this information to assess the time equipment requires maintenance or replacement. This avoids delays due to malfunctioning machinery. Moreover, it is of the utmost importance that you calculate these expenses in the pre-construct phase to estimate job costs accurately.

Create Comprehensive Estimates with Pre-Construct Software

Accounting for possible expenses is essential to creating accurate estimates and avoiding cost overruns. Cloud-based construction management software like BlackVector can streamline your administrative tasks for a more precise estimate every time. 

The Pre-Construct package makes it easy to create and save customizable assemblies with the Estimator. You also have the option to create custom sub-assemblies for specialty labor to ensure that you account for every component of the project before breaking ground. 

Furthermore, the Estimator tool is complete with Metrics functionality so that you can compare and validate each bid to your past estimates. From there, you can leverage the Data Analytics function to sort, extract and view data from any internet-connected device. 

But the wide range of this innovative construction management software doesn’t stop there. Since the Pre-Construct package is complete with Trade Partner Bidding Functionality, construction industry professionals can also keep track of their most effective trade partners. This package also allows you to create bids and send invitations to bids. 

From there, you can keep close track of the bid process from start to finish. Moreover, you can integrate Trade Partner Bidding with the Estimator function so that each bid connects to your estimate at the touch of a button.

BlackVector is the ultimate project planning solution made by construction experts to meet the unique needs of industry professionals. Our proprietary packages streamline administrative tasks so your team can focus on delivering work that’s always up to standard and on time.

Are you ready to plan effectively? Contact Us today to learn more about our revolutionary project management platform.

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