What is a construction estimate and why is it important?

Welcome to our guide on construction estimating! Understanding and using estimates effectively is essential in the construction industry, where precise calculations form the basis for cost estimates, material consumption, and resource planning. Here we focus on how to create estimates within the construction sector and how the software Geometra can be used to streamline quantity takeoff.

We’ll walk you through the basics of construction estimating and how it is used in practice to ensure profitable and well-planned projects. Whether you're a beginner or an experienced estimator, you'll gain valuable insights to improve your process.

What is a construction estimate?

A construction estimate is a structured method for calculating material usage, labor costs, and other resources required to carry out a building project. Estimating in the construction sector is crucial to ensure that projects stay within budget and on schedule.

Construction estimates are often divided into two main parts:

Quantity takeoff – Identifying and estimating the materials and resources needed for the project

Quantity takeoff can be done in various ways depending on the project’s complexity and available resources. While some still use scale rulers, paper, and pen, most now use digital tools like Geometra to improve efficiency and quality assurance. These tools not only facilitate the calculations but also enhance documentation and traceability.

Cost estimation – Calculating total costs, including materials, labor, and other expenses

Cost estimates are often prepared in Excel, but it's also common to use industry-specific software such as Bidcon or Wikells Sektionsdata, especially in larger or more complex projects. These solutions can often be integrated with systems for scheduling, procurement, or project management, enabling a more streamlined workflow.

Why are construction estimates important?

Accurate estimates are essential for:

• Cost control – Avoid unexpected expenses and keep the project within budget

• Resource optimization – Ensure efficient use of materials and labor

• Risk management – Identify and address potential risks and unforeseen costs

• Profitability – Ensure the project delivers the expected profit

Using Geometra in construction estimates

Geometra is a powerful digital quantity takeoff tool used in construction projects. By working with 2D drawings, photos, and documents, users can easily measure and calculate areas, volumes, and lengths, creating a solid foundation for further cost estimation. Using rows, the user can assign descriptions such as building element, material, quantity, and unit. There are also pre-configured calculations for material consumption that can be used directly or customized.

Benefits of Geometra:

• Fast and accurate takeoff from drawings, photos, and documents

• User-friendly interface with simple menus and tools

• Reduced error risk through digital measurement and data handling

• Compatibility with other estimating tools (Bidcon, Wikells Sektionsdata, and EG SmartKalk)

• Streamlined quantity takeoff process, saving both time and resources

• Exportable data for further calculation in Excel or specialized estimating software

5 Steps to Creating a Construction Estimate

1. Analyze drawings and documents – Use Geometra to identify and measure relevant project components

The first step in construction estimation is to thoroughly analyze drawings, documents, and other project materials. Using tools like Geometra, you can work with 2D drawings, documents, and photos to get precise information about the project’s scope. It’s not just about measuring lengths and areas — you also need to identify specific components to be built, like walls, roofs, windows, and doors.

You must also consider building codes and specifications that may influence material choices and work methods.

2. Perform quantity takeoff – Determine material requirements and resources based on drawing data

Once the drawings are analyzed, it’s time to determine the quantities of materials and resources needed. This includes calculating quantities from the drawings, such as square meters of flooring, cubic meters of concrete, or meters of piping required.

It’s important to consider product specifications (such as quality and size) during this step. Geometra makes this process faster and more precise by automatically calculating volumes and areas, reducing both time and error.

Accurate quantity takeoff helps avoid overordering (leading to waste and higher costs) or underordering (causing delays and work stoppages).

3. Calculate labor costs – Use standard rates or project-specific data to estimate labor effort

After determining the material quantities, the next step is to calculate the labor required. This involves estimating the time and resources needed to perform each task, from excavation to installing windows.

You can use standard rates based on industry data or past experience, or, when necessary, project-specific figures if the work is specialized or site conditions vary. Labor costs may fluctuate based on job intensity, location, and other factors, so careful estimation is essential.

4. Compile the cost estimate – Integrate data into Excel or a dedicated estimation tool

With materials and labor estimated, the next step is to compile a full cost estimate. This involves consolidating all data into a unified estimation tool. Excel can be used to build a detailed list of all costs, or you can use a dedicated industry solution.

Combine all elements — material costs, labor, equipment rental, transport, administrative expenses — into a comprehensive overview. A well-organized estimate helps quickly identify areas needing adjustment and provides a clear financial picture.

5. Review and adjust – Ensure all relevant factors are included and double-check calculations

The final step is to carefully review and adjust the estimate. Make sure all relevant costs are included and nothing has been overlooked. Also double-check for calculation errors, such as incorrect measurements or material quantities.

Also review external factors such as market price fluctuations or changes in labor conditions. A thorough review minimizes the risk of unexpected costs and ensures your estimate is as accurate as possible.

Common mistakes to avoid

• Inaccurate quantity takeoff – Small errors can have large financial consequences

• Overestimating materials – Can lead to unnecessary costs and waste

• Underestimating labor – May result in financial losses or delays

• Outdated cost data – Always use current pricing and material costs

Summary

Construction estimating is a vital part of any building project, requiring precision and planning. By using Geometra for quantity takeoff and supplementing with other estimating tools, you can produce accurate and reliable construction estimates. This leads to better bids, improved cost control, more efficient resource use, and greater profitability.

Investing in the right tools and methods ensures your project has a solid financial foundation and minimizes the risk of unexpected costs.

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