Estimating is one of many difficult occupations in the construction industry. The truth is that how accurate predictions are and how well they match up to final costs have a substantial impact on earnings. As a construction lender, you’d like to believe that your customers’ construction estimates are reliable, but according to a recent survey, over half of those polled were not confident in their estimates.

Although we do not work directly on estimates at Fund Control, we have discovered that construction lenders may benefit from assisting their clients in avoiding some of these typical estimating errors. Read on to discover more about them, and then give us a call at 800-625-5972 if you’d like to learn more about a very effective Fund Control software choice.

Failure to perform a site visit

Prospective bidders frequently get the opportunity to attend a pre-bid meeting and tour the jobsite. These may be required even to submit a proposal — and they should be. There are no two jobsites that are exactly alike. While looking at photographs and analyzing statistics might teach you a lot, there is no substitute for actually visiting a site.

Measurements, a detailed examination of the topography, and soil bore samples should all be included in this investigation. They should also think about traffic, road access, and the amount of space available for staging, receiving materials, and other components of the construction project.

Estimating labor costs incorrectly

Unfortunately, labor expenditures are among the most difficult to anticipate and the ones that can have the greatest negative impact on overall prices. One of the advantages of using our one-of-a-kind software is that you can simply break down budgets and configure notifications so that you are notified if budget costs change.

Estimating the costs of materials and supplies inaccurately

While recent studies have indicated that the cost of construction materials and supplies is falling on average, they still account for a significant portion of the average construction budget. The difficulty in forecasting these expenses stems from the fact that prices fluctuate from one season to the next, and tariffs make prices unpredictable.

Locking in costs is the greatest approach to minimize problems with wide gaps between the expected and actual cost of materials. Make sure the quotes you receive are valid not only for a month, but for six months or even a year. This makes getting closer estimates to actual material and supply prices much easier.

We’re here to assist you with all of your fund management requirements

Whether you work for a mortgage company, a bank, a private equity firm, or something else entirely, Fund Control is here to give an innovative Fund Control solution that you can tailor to your specific needs.