Why is an estimate important for construction firms? Because construction companies have a budget that they need to meet for a project. For a contractor, it is important to know how much he will spend and how much a project cost. In that way, he can manage his company's expenditure and track the cash flow. Also, the construction business is a capital-driven industry, so it is reasonable to invest monetary resources in the right way. To help you with your estimates, here is a Construction Estimates Template available in Microsoft Excel. This 100% customizable, easily editable, high-quality, and editable template will make your life more convenient. This is because Spreadsheets like MS-Excel helps to store information and calculate them according to formulas easily. You can own one of these templates by downloading it from our website. What are you waiting for? Become a member today, and enjoy amazing bargains.
How to Make a Construction Estimate in Microsoft Office Excel?
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If you are passionate about construction and civil works, learn the basic documents it is associated with. As one of the many business documents for construction, an estimate is a crucial document anyone in the construction industry should know. Below is a list of simple things you can refer to making a construction estimate. Read below for more dos and don'ts.
1. Learn the Purpose of an Estimate
To become a successful construction firm, you need to learn how to make business documents that are related to the field. Start with an estimate because it is one of the primary documents in a construction company. A construction estimate is not just an ordinary document because it is an approximate cost report of a construction project. This document helps a contractor to anticipate events and provide measures to meet it.
2. Make the Estimate Professional-Looking
Working on an estimate does not need novelty fonts, colorful sheets, or fancy layouts. If you are making this form, use simple fonts and white sheets. Though you do not want to make a document that bores your reader, you have to keep the estimate formal and readable. So, use simple typographies and minimalistic layout. With this, you can avoid extra destruction. What is important is to prioritize the data in the estimate. That is why a neat estimate sheet is an effective estimate too.
3. Conduct Take Off and Tabulate Data
As part of making an estimate, you need to initiate material take-off (MTO). With this, you will know the prices of the materials you needed to complete a project. Pick at least three different hardware where you can ask for the prices of a particular material or service. Then, tabulate or record the data you have. It would be best if you document the information so that it is easier to calculate. After the MTO, you can record the data on an Excel sheet and input formulas. Remember, you need to come up with the total estimated cost, so the calculation is simply multiplying the per-unit cost to the quantity of the materials. After that, you can sum it up and get the total cost.
4. Anticipate Variance
Make room for changes. Most big construction firms expect changes in the estimate; especially, it is a working project. But you don't have to worry about these changes because you can replace the data on the excel sheet. As long as you provide the right formulas, variance won't bother you.
