Factors that Greatly Influence Cost estimation

The toughest process for any kind of construction project is doing groundwork of a construction cost-estimate. There are a number of variable factors that are included in the construction cost estimation procedure. All the variables need to be properly evaluated depending on the appropriate study, research, and previous experience to estimate the overall construction project cost. There are a number of factors that influence the construction and have considerable impact on the cost of project.

Costs of Construction Material and rates of Labor Wage

The material cost of construction includes applicable taxes, delivery charges, and material cost. Hence, it's vital to think about all these variables at the time of evaluating material cost. When it comes to labor salary, it differs from one place to another. Therefore, local payment charges have to be kept in mind during evaluation. In case, the project is supposed to be kicked off after a few months of evaluating the project cost, the credible changes in payment has to be remembered in the evaluation.

Consider the Condition of Construction-Site and Inflation Factor

Well, the condition of a project site can raise the construction costs Site conditions like

· Scarce species territory

· archaeological sites

· buried storage tanks

· heavy traffic

· stream or river crossings

· ground water

· environmentally sensitivity area

· Conflicting utilities ( like overhead lines, cables, buried pipe etc.)

· contaminated materials

· wetlands

· poor soil conditions etc

Such conditions can raise the cost of a project at the time of construction. Any construction work can prolong for some years before the end. Throughout the construction duration, the cost of equipments, labors, tools, materials etc may differ periodically. These changes in the costs have to be included at the time of .

Some other major Factors

The construction project period also influences the cost. The increment in project period can raise the cost because of the increment in indirect costs, whereas the decrease in the cost of construction also raises the project cost because of increment in direct costs. Hence, it is vital to consider the construction project period while estimating project cost. Specifications and best construction plans lessens the time of construction by proper implementation at site. Any poorly established plan or formless wording not just lead to confusion, but also places confusion in the mind of the contractor which basically causes higher cost of construction. On the other hand, it is also important that the construction project runs smoothly. The project cost will be elevated with sound construction specialized standing. When a contractor is relaxed to work with a specific engineering company or an engineer, the project will progress smoothly and hence is more lucrative.

Lastly, the costs of insurance for different construction workers, equipments, tools etc. should also be considered at the time of construction cost estimating ny. Basic insurance needs like contractor's general responsibility, payment bond, and performance bond are usual expenses of construction projects. However, in some particular projects, some extra needs may lead to extra expenses.