Like many other industries, construction has also taken a hit following COVID-19. Although the pandemic has undoubtedly made it more difficult for contractors to operate, it’s important to note that construction profit margins have been plummeting since 2014.
Recent statistics from the Journal of Building Engineering indicated that profit margins were down to 0.38% in 2019. In light of the situation, operating in the construction industry seems nearly impossible—but before you decide to throw in the towel, we suggest taking a look at the advantages of construction estimating services for contractors.
What Cost Estimation Companies Can Do?
We know what you’re thinking: What can a construction estimation company do to improve my bottom line? Why outsource estimation when I can do myself for less? Well, it’s all about ensuring your construction business operates profitably, rather than incurring a loss.
Inaccurate cost estimates are the primary reason why contractors lose significantly more bids than they win. In many cases, even when contractors win a bid, they still ending up losing out because the actual costs are more than the estimate.
Designing a detailed and precise material takeoff or construction estimate isn’t an easy task—and an inaccurate estimate determines the fate of your project. While outsourcing estimation might seem like an added expense, it’s an investment that helps you determine exactly how lucrative the project will be.
What Are The Benefits of Cost Estimation?
Both commercial and residential construction estimating services can take advantage of these five great benefits:
1. Win more bids: Fast, accurate, and detailed estimates increase your chances of winning bids.
2. Eliminate overheads: Avoid overheads that cut into your profit margins.
3. Save money: Stay within budget and ensure better margins.
4. Eliminate wasted time: Avoid the downtime and hassle associated with going over-budget.
5. Grow your business: Win profitable bids and expand your construction business.
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