How to Estimate Construction Costs

A construction project can be a big task for somebody that is taking this on. Whether it is new home construction or commercial construction, this is likely going to add up. 

In the United States, the average cost of a commercial construction project is $490 per square foot. 

Are you trying to undertake a construction project? Do you want to get an idea of how expensive your ideal project will be? 

This is how to estimate construction costs. 

Estimate the Time Needed 

The first thing you are going to want to do is to get an idea of how much time this construction project is going to take. You can do this by detailing exactly what needs to be done and how much space this needs to be done too. 

Truthfully, you are best off talking to a professional if you are not experienced in the construction industry. They can tell you everything that needs to be done and tell you how long all of these tasks usually take. 

The reason why time is so important here is because this is usually what makes up the labor costs. You have to pay for the time that construction workers take to work on your project. 

That is likely going to be your largest expense as well, so it is good to get as accurate of a timeline for this construction project as possible. 

Factor in the Material Used 

Another thing you are going to want to consider is what material has to be used for this project. Depending on the quality and quantity of your material, this cost could add up quick. 

For example, you could need wooden floor tiles for the offices in your building. You could need a railing for stairs in your building. 

Then, there are other necessities in a building such as proper plumbing and electricity. All of these items add up and depending on the size of your construction project, this could turn out to be a lot of money. 

Consider the Equipment Used 

Finally, you are going to want to factor in the equipment used for this project. You may have had to get additional equipment to knock down the old site on your property. 

Machines such as a bulldozer, a wrecking ball, and a crane all add up. Get an idea of what you are going to need and if there is anything that you cannot cover with your own cash, consider looking at low doc construction loans. 

Estimate Construction Costs 

These are some of the biggest factors that come into play when you are trying to estimate construction costs. Because construction workers have to get paid for their time, you need to have a good idea of how long this project is going to take. 

On top of this, make a list of all the materials that you are going to need as well as all of the necessary equipment. For more relevant content, check out other articles on our Blog.