How Can Contractors Accurately Estimate Plumbing Works?
If you have been facing a low bid hit ratio recently, here’s a helpful guide to estimate plumbing works accurately. Plumbing projects can vary depending on the size of the building and complexity level. Not to mention, the fluctuating market prices further add to the uncertainty.
To create a precise estimate, it’s important to keep a checklist or follow a standard procedure to make sure everything is accounted for. Here’s a step-by-step handbook for plumbing cost estimation that is easy to follow yet foolproof.
Guide for Estimating Plumbing Works
1) Don’t Just Pick Any Project
Do not bid on the first project that you come across. Some contractors may think that bidding on more projects at once increases the chances of landing a job. While it may open up more opportunities, it can do more damage than good. If you fail to deliver an accurate budget, you’ll have to cut your own profit margin to finish the project. It will also ruin your reputation and a contractor. So take your time and find a job that is within your area of expertise and experience.
2) Project Specifications
The next step is to gather as much information as you can about the construction project.If there is any ambiguity, then make sure to contact the client and clear it up.You should have access to the project’s blueprints and architectural drawings. Similarly , you should also be aware of any special requirements by the client. It is helpful in creating an estimate when you understand the client’s perspective and what he wants.
3) Perform Takeoff
Calculating the quantity of material is the first step to estimate plumbing works. Plumbing material generally includes pipes , plumbing , fixtures, valves, vents etc. For accurate quantification of material make sure to consult the measurements. Common units of takeoff measurements include length, volume, width and count.
While performing takeoff, make sure to add 5% to 10% for wastage of materials. For larger and riskier projects, you can adjust the wastage percentage.
4) Compute Material Cost
The next step to estimate plumbing works is to calculate the total material cost. Multiply the cost of material by the per-unit price, and you will have the total amount. Pro tip: If you are unsure about the recent market prices, it is better to get a couple of quotes from vendors before drafting your document.
You can also invest in a real pricing guide, like professional estimating services do. For example, one of the best cost estimation agency, SMA MEP Estimate, use RS Means, which gives them zip code-based pricing.
5) Calculate Labor and Equipment Cost
Underestimating labour cost is one of the biggest mistakes that amateur contractors make. Labour costs can go up as high as 30% of the entire project cost, depending on bone size and complexity. Most of the labour is charged by the hour. So you’ll have to multiply the time taken to complete the project by the hourly wage.
For the calculation of equipment cost, it is important to include both purchased and rental equipment. For most rented equipment, you have to pay by the hour of its usage. It’s also important to consider maintenance and upkeeping costs.
6) Overhead Costs
Overhead costs are an important part for estimating plumbing works. Overhead costs also known as indirect construction expenses, shouldn’t be overlooked. It includes
- Administration Fees
- Utility Bills
- Material Transportation Charges
- Permits and Inspections
- Marketing
- Insurance and Benefits
Not all of these costs will be associated with every project. You have to decide which indirect costs are included in your project.
7) Contingency Plan
15%-20% of the entire budget is added as a contingency plan. It may be higher or lower depending upon the project. The purpose of a contingency plan is to safeguard the project cost in case of an unforeseen situation. For example, sudden weather changes, change orders, construction mishaps etc, can not only increase the cost but also delay the project. A contingency plan will help to control the costs in case the project costs increase.
8) Reevaluate and Submit
After accounting for every plumbing cost, go through your evaluations at least once. Look for any potential errors or flaws in your calculations. If possible, get the estimate checked by a senior estimator.
After the calculations are finalized, it’s time to turn in the project. To draft a bid proposal here are some pointer:
- Don’t use complex and difficult language
- Stay relevant
- Be transparent about the costs
- Include details about the cost plan
- Add relevant expertise and experience
Best Practices for Plumbing Estimating
Some of the best practices for Plumbing Estimating are:
1) Be Familiar With Local Regulations
Local building codes can also impact the construction cost. It’s better to be aware of these rules before creating an estimate. For example, some areas may have a rule to use fireproof drywall instead of a normal one. This will increase the cost of the construction project.
2) Outsourcing Piping Estimating Services
Piping Estimating Services creates customised and tailored budgets according to the requirements of the project. Professional estimators are insanely accurate in developing a budget because they go through every little detail and use advanced technology.
3) Go Digital!
Speaking of advanced technology, AI-powered cost estimating software is becoming quite popular. This software is free from human miscalculation and not to mention much quicker and precise.
Final Thoughts
Now you may have an idea about how to Estimate Plumbing works with precision without leaving any factor out. You can also use historical data for a quick baseline and then add your own calculations and make changes to it. So there are a lot of different methods and techniques that you can adopt in your estimate. But one thing remains constant, you must account for every detail. There are no shortcuts for a precise budget (except hiring an estimator to do it for you). Cost estimation demands attention to detail and analytical skills. Remember, a budget can make or mar your construction project!