Building is a tough business. In particular, when it comes to the initial stages of the project life cycle such as the estimation and bidding process, contractors often face difficulties with inefficiency. Although it is very normal with construction projects that involve a large number of tasks, it is also incredibly important to manage all resources and funds wisely to ensure maximum profits and cash flow. Thanks to today, construction management software technology enables contractors to have a complete view of the project for smart estimation. But still accurate estimation needs contractors to have full access to basic requirements as it not only helps in achieving productivity targets but has efficiency in work. Even if it seems like a difficult task to achieve grading goals, most contractors make common mistakes in their estimation practices. Thus, lack of accurate estimation often leads to contractors to cost overruns, project delivery delays and late payments. Today, we’ll discuss in detail the five common mistakes that contractors must avoid when estimating a construction project in 2021 even when they have access to advanced construction accounting and project management technology. Quick Conclusions Dealing with severe work stress and limited time resources often makes the situation more complex. The pressure to meet current project deadlines and reporting goals causes contractors to jump to quick conclusions not spending time estimating. However, neglecting the research portion of project estimation can lead to serious complications in later stages. To avoid such a situation, contractors should plan their decisions by spending time to overcome errors and overcome any flaws in the plan that may cause budget problems. Random Assumptions Building business management requires systematic decisions. In particular, when irresponsible decisions cause a significant reduction in profit margins, careful planning becomes even more important to have clear expectations of the process. This is why contractors aiming to boost the project pipeline in 2021 must choose smart building management software technology that can help adhere to construction best practices, eliminating any guesswork with estimates. The need for change Although it is always considered a business-friendly practice to look at past project data to plan future projects, it may not necessarily work for everyone. Contractors must understand that one strategy cannot be used for another project even when the activities or project goals appear similar. Instead, estimation objectives should be worked on by working on project requirements based on the unique challenges and opportunities associated with the project. Moreover, project managers can also work on current business trends to estimate separate parts of the project. Not only can this exposure help understand cost and labor requirements, but it can help work on other essentials like electricity, plumbing materials, HVAC systems, etc. Unreliable estimates over time, the concept of construction project management has changed completely. Therefore, it is crucial to understand and act on all parameters associated with the construction project that may hinder the final performance and deliverables. Also, when it comes to profits, accurate forecasting allows you to have more detailed communication with customers giving you an opportunity to increase revenue. Also, contractors and project managers can collaborate to work on project quotations and work on more accurate verifications and verifications before final estimates are submitted to project owners. Estimation and Procurement Last but not least, contractors must spend a significant amount of time on the appraisal and procurement process as it is the essential step towards the construction phase. The inability to work through the procurement process and create accurate estimates could result in contractors losing their jobs or facing widespread excesses. However, quality procurement can benefit the project in equal measure to avoid unnecessary loss with the project because it provides the opportunity to know the exact material and equipment requirements. In general, it helps in controlling delays that may occur at any stage of the development process while preventing any cost overruns. Conclusion All in all, inaccurate estimates pose a net risk to construction business especially when they aim for sustainability beyond the downtime caused by the pandemic. Even if you have a customized process that helps you work in prioritizing activities and managing time, inaccurate estimates can require unwanted delays, large labor charges, and of course, a lost track of accomplishments. Therefore, to ensure an accurate estimate of materials, labor, and costs, it is critical that you work on project requirements, learn current costs of material, calculate total labor hours, and of course, consider an appropriate amount of overhead to address any change orders or environmental disturbances. Then, you can simply collaborate and aggregate all your project data using your build management software with the goal of optimizing growth and prosperity with the business. Ed Williams is the Senior Team Leader at ProjectPro, an integrated construction accounting software. He has extensive industry experience and is a Microsoft Dynamics expert focused on successful implementations. He is a visionary leader who always aims to provide the very best for the construction and project oriented sectors.