Providing an accurate estimate of your total construction costs can be a great way to earn the trust of your clients and keep them coming to you for all of their projects. Construction cost estimates allow builders to identify how much a project may cost and provide a breakdown to the clients. If you’re interested in offering the client an estimate, it’s helpful to learn about the templates for presenting construction costs.
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In this article, we discuss what construction cost estimate templates are, review why they’re important, explain how to use them and list eight types of templates for you to try.
What is a construction cost estimate template?
A construction cost estimate template is an analytical breakdown of the various costs that go into building a project that the construction company offers to a client. Construction companies produce these estimates while bidding on projects to earn a client’s business by showing how they can complete the project while minimizing costs. Builders also produce construction cost estimates before breaking ground to prepare the necessary materials and employee schedules to complete the project on time.
Construction cost templates come in various forms, but they usually share some characteristics. Most estimates include numbered lists showing the materials necessary to complete the project, including where the construction company plans to source the material. These estimates also typically include a breakdown of how many employee hours are necessary to finish the project and a timetable providing an estimated completion time. This information is important for clients trying to choose which company to award their business to, as they generally want to reduce costs as much as possible.
Why are construction cost estimate templates important?
Construction cost estimate templates are important because they provide insight into how long a construction project might take and how much it may cost. Although these analyses are just estimates, they should still provide an accurate breakdown of the various costs associated with a project. Besides being a crucial part of bidding on new construction projects, these estimates also provide an opportunity for the construction company to plan out the different phases of construction and acquire the necessary materials.
An important part of using construction cost estimate templates is understanding the difference between direct and indirect costs. Here are the differences between these two concepts:
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Direct costs: Direct costs are any expenses directly related to the project’s building. These include materials, labor and any equipment that a team needs to finish building.
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Indirect costs: Indirect costs represent the various costs you encounter during construction that don’t directly affect the project’s completion. These include legal fees, zoning fees, security for the job site and any temporary structures that a team may build to facilitate the actual project completion.
Construction cost estimate templates are also important because they can be a valuable resource for later projects. For example, if a construction cost estimate predicts that materials and employee costs are $100,000 and the actual value ends up being $125,000, the company can use this discrepancy to improve its estimates for later projects. These estimates provide a valuable resource for accounting departments as they can reveal the projected cost of a project versus its actual cost.
8 types of construction cost estimate templates
If you’re planning to create a construction cost estimate for a project you’re working on or to bid on a project, it’s helpful to read about the benefits of different templates. It may also be useful to try a few different templates to see which one works the best for your company. Here are 8 types of construction cost estimate templates you can consider:
1. Simple construction cost estimate template
This straightforward template allows you to focus on the project’s costs. A simple construction cost template has a small section that includes the company’s name, the client’s name and some contact information. This template also has multiple lines for you to fill in with the various costs of the project, as well as a column for the cost of each line. You can total the costs at the bottom and present this template to the client as an easy way to visualize the total amount of expenses you estimate for the project.
To upload the template into Google Sheets, go to File > Open > and select the correct downloaded file.
2. Hourly work estimate
This template is useful if you’re trying to plan how many employee hours it takes to complete a project. This template is effective for planning out employee schedules and deciding how many company members you think are necessary to complete a project.
This template includes rows for each employee’s job title, the number of employees who have that position and the hourly rate for each type of role. By adding up all these numbers, you can determine how much money is necessary to spend on employee pay during construction.
3. Contractor estimate
The contractor estimate template provides a resource for tracking the expenses associated with using a variety of contractors. Construction companies often hire contractors to perform services like landscaping and plumbing, so keeping track of the fees for these services can be crucial to developing an accurate estimate. This template has individualized breakdowns for each contractor, including their service and how much they expect to be paid.
4. Budgeting template
You can use this type of construction cost template a project has finished. This template has rows that allow you to fill in the predicted cost of each line item, and then go back after the company has completed the project and add in the actual cost. This can be a helpful template for companies interested in tracking any discrepancies between estimated costs and actual costs of construction. Understanding where the company spent more or less money during construction can also help you to produce more accurate estimates for future projects.
To upload the template into Google Sheets, go to File > Open > and select the correct downloaded file.
5. Direct versus indirect costs template
This template allows you to categorize expenses as direct or indirect costs. This can be a useful way to break down the different costs of completing a project by organizing them into these two categories. This template includes a section for each type of cost, with rows and columns for each line item’s name and total price. This type of template can be useful if you’re uncertain how much it’s necessary to spend on indirect costs, as these can vary greatly depending on where you plan on building.
6. Materials template
The materials template is a resource you can use to track how much each material you need costs. This can also be a good template to use if you’re trying to reduce the amount of money the company spends on externally sourced materials, as you can use this resource to keep track of the prices different vendors offer.
This template provides rows for each type of material and columns that include the price for each. You can also use this template to track what materials cost throughout a construction project. This can help you determine when it might be necessary to find alternative materials, such as if there are price changes during construction.
7. Progress template
The progress template is useful for providing updates on the status of a project while it’s undergoing construction. This can be a useful template to use if clients are interested in tracking the development of construction as the project progresses. This template includes lines for each phase of construction, with rows for you to track how far along in each step you are. You can include a percentage estimate for the completion of each project to keep a client informed of all the new developments as the project approaches completion.
To upload the template into Google Sheets, go to File > Open > and select the correct downloaded file.
8. Daily report template
The daily report template lets you track what a team accomplishes daily. This can be a useful way to track construction progress while also ensuring you reach the goals you have set for progress each day. The daily report template provides rows to plan what you want to finish each day and columns for you to track whether the team reached that goal. This can be an effective way to keep a client updated on the construction progress.
How to use construction cost templates
Construction cost templates provide an organizational resource that you can use to categorize and sort the various costs associated with a project. They are helpful sheets to track and predict the different expenses of a project, but they’re only as accurate as the information you provide. Here are the steps to use a construction cost template:
1. List all the predicted expenses
The first step to filling out a construction cost template is to predict the different costs that you expect to incur while working on a project. These costs vary from material costs and legal fees to employee wages and benefits. Since many expenses are associated with a building project, it’s useful to list them all to ensure you factor each into your estimate.2. Assign a price to each item on the list
Once you have listed all the different expenses for a project, the next step is to assign a number value to each one. It can be important during this step to have accurate pricing information so that your final estimate isn’t too high. Making sure that you minimize costs as much as possible can be a good way to earn the client’s business, since they’re likely to go with the contractor who provides the lowest estimate.
3. Add up your total costs and check the number
After providing a price for each line item on your estimate, the next step is determining the total cost. This step allows you to predict how much the final project may cost. Once you have your final number, it can be helpful to compare your cost with any similar projects the company has already completed. You may also want to check the final estimate with an accountant to ensure that the number is accurate and you’ve accounted for every possible cost.
4. Decide on your markup price
After completing an estimate for the bare minimum cost to complete the project, the next step is to add the company’s fees to the template. While the initial estimate predicts how much the project may cost, it doesn’t include the company’s fees and pricing model.
It’s important to charge an appropriate fee for the project, but it’s also useful to remember that clients often choose companies that offer the lowest total cost. This can help you determine a price that matches the needs of your target clients. Once you add your company’s fee to the total, the estimate for the project’s total cost is complete.
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