What are the best practices for estimating construction activities?

3 Apply contingencies

The third step in estimating construction activities is to apply contingencies to account for the uncertainties and variations that may occur during the project. Contingencies are percentages or amounts that are added to the base estimate to cover the possible changes in costs, schedule, or scope. Contingencies can be based on different factors, such as the complexity, novelty, or riskiness of the project, the quality of the data, or the level of confidence in the estimate. You should use a rational and transparent approach to determine and justify the contingencies, and review them regularly as the project progresses.

4 Review and validate

The fourth step in estimating construction activities is to review and validate the estimate before presenting it to the client or the contractor. The review and validation process should involve checking the accuracy, completeness, and consistency of the estimate, as well as comparing it with similar or benchmark projects. You should also seek feedback and input from other experts, such as peers, consultants, or estimators, who can provide a different perspective or insight. The review and validation process will help you identify and correct any errors, gaps, or discrepancies in the estimate, and improve its quality and credibility.

5 Monitor and update

The fifth step in estimating construction activities is to monitor and update the estimate throughout the project lifecycle. The estimate is not a static document, but a dynamic tool that reflects the current status and conditions of the project. You should track and record the actual costs and duration of the tasks, as well as any changes in the scope, specifications, or resources. You should also compare the actual performance with the estimated performance, and analyze the variances and causes. The monitoring and updating process will help you adjust the estimate accordingly, and report any issues or deviations to the client or the contractor.

6 Communicate and document

The sixth and final step in estimating construction activities is to communicate and document the estimate effectively. The estimate should be presented in a clear, concise, and consistent format, that shows the breakdown, assumptions, and contingencies of the estimate, as well as the level of detail, accuracy, and confidence. The estimate should also be supported by relevant and sufficient evidence, such as drawings, calculations, or references. The estimate should be communicated to all the stakeholders, such as the client, the contractor, the subcontractors, and the suppliers, and discussed and agreed upon. The estimate should also be documented and stored in a secure and accessible place, for future reference or audit.