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#Benchmark construction full#
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General economic conditions at the time the averages were compiled may be different than they are today.

Timing: Weather conditions vary at different times of year, and material costs can be affected by availability.

If the industry averages you’re using don’t account for these differences, they’re not factoring in variables that can impact costs. Building a new hospital is nothing like constructing a football stadium.

Type of Project: Different projects have different requirements.

Generic cost averages typically don’t account for these localized nuances, which can be a major factor in the overall cost of the project.

Geographic Location: Regional variables can have a big impact on labor and material costs.

You have no visibility into the specific details that could have a significant impact on price, including: In fact, part of your job as an estimator is to account for all of those different factors as best you can to ensure the quoted bid is as accurate as possible.īut if you’re building your estimates on industry averages, you’re building on shaky ground. They may give you a general idea of the cost of a certain kind of labor or material type, but they fail to account for a number of variables.Īs an estimator, you know that each construction project has unique qualities that play a factor in what the actual costs will be. When you use generic averages for cost benchmarking, you’re relying on costs without a clear understanding of how they were derived. Construction cost averages are no exception.

#Benchmark construction full#

The reality is that third-party data has the potential to be misleading, especially when you don’t have a full understanding of where it’s coming from and how it was compiled. Generic cost averages can’t ensure accurate construction estimates.

#Benchmark construction free#

Ready to discover a better way to benchmark? Get the FREE eBook. More likely, they’re too generic to accurately reflect the details that can significantly affect costs, making them an unreliable source for cost benchmarks. While they may seem good enough because they’re backed by project data, industry cost averages are limited in their ability to help you produce precise estimates. This information is fairly easy to come by and seems-on the surface, at least-like a decent source of information for producing a construction estimate that’s reasonably accurate.īut general construction cost averages are not the best data source for cost benchmarking. Industry cost averages are one source of cost benchmarks. You’re also expected to produce c onstruction bids that are as accurate as possible.Ĭost benchmarking provides a methodology to check your estimates against typical costs to gain more assurance of their accuracy. But speed isn’t the only thing that matters. Faced with a never-ending workload, your ability to produce estimates efficiently is key. As soon as you finish one bid, you’re on to the next. As a construction estimator, you’re under pressure to work quickly.