What Are the Most Overlooked Costs in Construction Estimating?

Construction estimating involves various costs, and some are often overlooked during the estimation process. Here are some of the most commonly missed costs in construction estimating:

1. Site Preparation Costs:

– Clearing the site, grading, excavation, and filling are essential but can be underestimated.

– Costs for demolition, utility disconnection/relocation, and temporary facilities should be considered.

2. Permitting and Regulatory Costs:

– Fees for permits, inspections, and compliance with building codes and regulations.

– Costs related to environmental assessments and permits if necessary.

3. Material Price Fluctuations:

– Prices of construction materials can vary during a project, affecting the overall budget.

– Consider including a contingency for price fluctuations to avoid budget overruns.

4. Labor Costs:

– Overtime pay, additional workers, or specialized labor requirements can increase costs.

– Factor in potential wage increases during the project timeline.

5. Equipment Costs:

– Renting or purchasing specialized equipment not initially planned for can impact the budget.

– Maintenance, fuel, and transport costs for equipment should be included.

6. Indirect Costs:

– Overheads like insurance, taxes, project management, and legal fees can be overlooked.

– Costs of temporary facilities, security, and sanitation need to be accounted for.

7. Design Changes and Delays:

– Modifications to the initial plans, unforeseen obstacles, or permit