This week at Vigilant, I spent time working on some cost estimates for some renovation projects we are working on as well as my usual weekly tasks.
Cost estimates are important to any job so that the client is prepared for what the project will likely cost them. While preparing an estimate, you must use several resources to get an accurate and reasonable approximation. Once I found the cost for the item I was looking for, I had to add additional costs for annual inflation and taxes.
While completing these cost estimates, I quickly realized the renovation involved much more work than you would initially think. If you are relocating a sink, you have to account for wall and floor patching, painting and relocation of the plumbing for the sink. If you are turning a storage room into an office, you not only have to estimate the cost for the desks but the new data boxes and power outlets as well. The estimates I was working on ended up involving many more costs than I had expected.
When estimating the cost for a project, it is not always the most important to be dead on with your final cost. It is good to be close or in the right ballpark, but it is perhaps most important just to ensure your client will have enough money in their budget to complete the job. It is better that your estimate is a little over what the actual cost is than to have the project go over budget because your estimate was not high enough.
With a new project manager starting and projects moving along, I’m looking forward to the upcoming week.