Things Just Don't Add Up Right!
The first and most common mistakes made on construction cost estimating are related to errors in arithmetic. This means the majority of mistakes could be avoided if the numbers were calculated correctly. Using calculators with tape can help so you can check your sums, but it is still so easy to get confused: Costing for labor, materials, resources and licenses can easily get mixed up and misconstrued. Unless you have software to work it out and keep records, you should have someone else review your work and also include a copy of the calculator tape with your estimate.

The Tape Measure Doesn't Lie
The second mistake is due to the fact that usually measurements involved in costing a project are derived from plans and calculated to scale. It only takes one small error in the measurements and the whole material prices will be out of whack, resulting in estimates that are either too high or too low. Always check all the measurements a few times to be sure they are all correct.

Confirm Current Labor Rates
Labor wages vary from time to time, state to state and sometimes even between cities, so the third common error made is with labor costs. Always verify the current correct rates prior to beginning your estimate. If you have trouble finding the information you can contact the union office. Factor some overtime allowances in to the estimate as well to be sure you are covering all your bases.

Account For Price Increases
If the job you are quoting for is months or more in the future you should factor in potential price rises on materials. Every time you are forming an important quote, double check your records on rates. Never think near enough is good enough or you could lose your entire profit, so regularly update your price lists.

If It Doesn't Work, Don't Use It!
Never prepare a quote in hope that problem equipment will pull through for one last job. If an important item breaks down midway through the job it could cost a fortune to hire or repair. This can even cause delays and result in failure to meet deadlines, which is often penalized financially.

Construction cost estimating is definitely one of the most important parts of the business side of the company. The least amount of errors you have in your quotes, the better for both your company and the client. You should take every step possible to ensure your quotes are error free and avoid getting a bad name for your business. To truly ensure this doesn't happen, use the above as a checklist and take the time to visit http://www.expertestimating.com for more information that can assist you.

Nick Hurd is the developer of LiteningFast Estimating. LiteningFast is an estimating program that helps you estimate faster, easier and more accurately. It's integrated with QuickBooks to provide job cost. It was introduced to tbe market in 1994 and currently has over 3,500 users in the US, Canada, and around the world. You can find more information at construction cost estimating. You'll be glad you did.