Why is it important to have an accurate cost estimate?
The financial risk associated with construction projects makes it essential to having accurate cost estimates. Even a small miscalculation in a cost estimate can create cost overruns in a project. When that happens, the money has to be made up somewhere, and that often means giving up something else in the project. Money is often found by taking it out of the contractor’s profits, or going to the owner for more money. None of these options are pleasant and rarely produce a good outcome. Accurate cost estimates are especially important in publicly-funded, or partially publicly-funded construction projects, where costs will be scrutinized by many more parties – particularly taxpayers and donors who help to fund the projects. Many times, it is the construction firm’s responsibility to make up for any budget miscalculations. Therefore, having a knowledgeable construction cost estimator with accurate cost estimating software is important for the success of a construction project and construction businesses.