7 Factors that Affect Construction Costs

Determining Project CostAre you planning to construct a building soon? If the answer is yes, then it is only important to know how contractors charge you as their client. Below are the factors involved in construction estimation.

Cost of Materials

Supplies such as cement, steel, paint, and cables consume a major amount when it comes to estimating construction costs. Builders must also consider shipping charges.

Wage Rates

During the estimation process, it is important to identify the wages of builders and other workers involved. Construction agencies typically determine this, but the government’s local labor rates, which typically involve construction estimating software, may also be part of the cost.

Condition of Site

Wetlands, environmentally-sensitive areas, archaeological sites, and locations with ground water, heavy traffic, or river crossings are just some project site conditions that may affect a construction’s estimated cost. These conditions add value as they influence the productivity and ease of the project.

Project Size

The size and complexity of a project determines if contractors have the capacity to execute it. The larger and more intricate a project is, the more expensive it will be. This situation, however, attracts a broader number of prospective bidders.

Project Schedule

Construction projects that entail aggressive time frames generally have a higher cost. If the project, however, has a more flexible schedule, contractors may lower its overall price. Take note that projects beyond 60 days typically result to higher bids.

Quality of Plans and Specifications

Well-prepared plans and specifications result to properly executed outputs. Any vague wording or poorly-drawn plan will only cause confusion, leading to a stricter time frame and doubt in the contractor’s mind.

Skill of Engineer

Engineers or engineering firms with professional reputations usually charge higher than engineers with no experience do. If your contractor is willing to work with a cost-efficient engineer, expect a lower estimation cost.

Construction projects entail several costs. Make sure to work with a contractor that is not only transparent but also trustworthy.