Costing and Estimation in A Construction Job

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A construction contract is often a large job. There are many factors that need to be tracked and monitored. Companies often employ software to help them track all the costs and expenses of a construction contract. But how do they calculate the costs involved and the amount of capital they will need? They use a process called costing and estimation and the person who has expertise in this subject often  have a degree in civil engineering or possess certification of quantity surveyor courses in rawalpindi.

It is standard practice to calculate the cost of a construction job before it is undertaken. This process is called costing or estimation. It takes into consideration the following -

1. Expense of labor, materials and transportation.
2. Expense of running the site office. This includes the cost staff salaries, meals, etc.
3. Expense of employing site security.
4. Expense of preliminaries and insurance.
5. Expense of overheads.

The price of materials is hardest to account for because of the fluctuating prices in the market. The margin left for these costs is usually 25%. Weather is another factor that is hard to account for. Bad weather can bring work at a site to a complete halt. This can lead losses if not dealt and accounted for. All these factors are described in detail in quantity surveyor courses in rawalpindi

There are many estimates for any particular job. There is the preliminary estimate, the approximate estimate, etc. and each estimate is used for a different process. People often confuse costing and tendering or contracting. They are different. Costing or estimation is the process of calculating the total cost of a job. Tendering is the process of contracting out the job. In the tendering process a lump sum is added to the estimated price of the project as profit.

Types of Costs is an integral training part in quantity surveyor courses in rawalpindi

Labor, material and plant costs are the major elements of the cost. Other costs include water for the works, site offices, tools and machinery, the maintenance and servicing of machinery, construction of temporary roads, security and lighting of the site, the contract bond, etc. Sometimes jobs are sub-contracted and these costs need to be tracked as well.

All these expenses can be calculated either on paper or construction accounting software can be used. The process of estimation can be difficult if the person does not have any previous experience. The accounting software helps keep track of the expenses and can predict the total expense of the project by using algorithms. Often costs can get out of hand during a job and it may be too late when the contractor finds out. Construction accounting software can help prevent this.