Construction Estimate ROI Calculator

Depending on the type, size, and complexity of the project, creating an accurate cost estimate could take anywhere from less than an hour to several days or weeks.

To accurately estimate costs, you need to fully understand the scope, conditions of site, material requirements, and labor needs in order to identify what those costs are likely to be. From there, you’ll need to evaluate any potential risks or design changes that might affect your estimate. This assessment typically involves evaluating such factors as site conditions, as well as researching various codes and regulations related to permitted zoning laws in the area—all of which require additional research time before project cost estimations can be made.

Next comes evaluation of labor requirements based on industry standards based on one’s experience specific to this type of job similar ones that have previously been conducted in the same region at similar times in history (in terms of macro-economic factors). Labor rates also need to be calculated according their current market value, factoring in benefits like insurance coverage or overtime wages depending on each contractor’s policies.

From there, material quantities must also be estimated which usually requires quite an amount of historical data considering things like waste allowances for different types of materials being used during a given job (e.g., cement mix). On top of all of this, you’ll need to take into consideration numerous other variables like transportation expenses, overages/underages, etc.

For contractors that specialize in smaller and more specific projects, many of these factors may be the same for every project, thus making them easy and quick to estimate. For larger and more custom projects, the variables will be different for every project requiring more time and effort to ensure that the estimate is thorough and accurate.

While there is no official research that has been conducted, but the reported averages found through various sources range between success rates of 10% to 20%. For more specialized contractors, the success rate of winning construction estimates could go as high as 40% or more.

In general, if you’re winning 1 to 2 estimates for every 10 that you generate, you’re right in line with the average success rate of other contractors.