Budgeting for Your Project: How to Estimate Construction Materials
Construction material calculation is a critical part of any construction project. Estimating construction materials can dictate whether a project is feasible or not. It also impacts the budget, timeline, and overall success of the project.
Overestimating materials can lead to unnecessary costs, wastage, and lack of efficiency, while underestimating can result in project delays, interruptions, and lack of funding.
This article was written as a guide on how to calculate materials required for construction. It’s made with seasoned contractors or newbies in mind. So, whether you’re refreshing your knowledge or just learning, the knowledge that can allow you to control costs and manage projects better is at your disposal.
The Importance of Estimating Building Materials
The ability to accurately estimate the cost of building materials is key to delivering a successful construction project. This skill requires foresight and strategic planning to meet project requirements while maximizing the resources available.
Usually, companies bid to take on construction projects. During the bidding process, the estimated cost of the project is something developers consider before awarding a contract. If the estimations submitted for the project are wrong, the construction company’s profitability and reputation can suffer. Underestimation can lead to financial losses while overestimating can make the bid less competitive.
Aside from this, calculating construction materials is essential to maintaining project timelines. Knowing how much and when to purchase the necessary materials will prevent delays and minimize the risk of unnecessary expenses, material wastage, and storage challenges.
When to Calculate Construction Materials Costs
Contrary to what people believe, estimating construction material costs is an ongoing process that evolves with the project. The early project stages will need a rough estimate to decide whether the project is financially viable, but as the project moves from concepts to development more estimations will be required.
Once blueprints have been approved, rough estimations are replaced by precise costs backed by procurement plans. When the project is well underway and design modifications occur, estimating material costs must happen again to avoid material wastage and to keep the project within budget.
Finally, at the end of the project when it’s time for final cost analysis, having a record of estimated construction material costs is key to providing valuable data for future projects and cost control.
How to Estimate Construction Materials
Estimating the cost of construction materials is a challenging process. One small misstep can snowball into larger problems affecting the project’s budget and timeline. In this section, we’ll break down how to calculate materials for construction. We’ve also included some tips to remember while making material estimates.
Understand the Project’s Scope
The first thing you should do is to carefully examine the blueprints, specifications, and other project documents. We recommend starting from the bottom working your way to the top, then listing the materials you’ll need.
By making a master list, you’re less likely to miss anything important. We also recommend consulting with architects and engineers to know whether they have any specific requirements or standards for the materials that will be procured for the project.
For example, some engineers prefer to use aluminium framing system due to their lightweight capability over steel ones. These requirements can severely affect your estimations, so it’s best if you account for these requirements as early as possible.
Decide on a Type of Estimate Method
These are three common methods to estimate the cost of construction materials:
Unit Pricing Method
The unit pricing method can provide detailed cost estimations. These cost estimations often require knowing the exact number of items needed. It’s also used for comparing material prices from different suppliers.
The unit pricing method involves assigning a cost per unit of measurement to each material. Here are some examples:
- Concrete per cubic yard
- Wood per board foot
- Steep per ton
Count each unit of the products necessary and multiply it by its unit price. When doing the unit pricing method, make sure to include everything in your estimation.
Square Foot Method
The square foot method is used for preliminary estimates and for comparing costs to similar projects. However, it’s less accurate than the unit pricing method and it doesn’t consider the material variations or design of the project.
This simplified method estimates the total cost of a project based on its square footage. A cost per square foot is assigned for the entire building.
Rule of Two Method
The rule of two is another rough estimation technique that’s typically used during the preliminary phases. It’s simple to execute and its results are a good basis as to whether a project is feasible or not. However, this method should not be used for detailed budgeting or cost control.
This method can also be used to estimate how much time it will take to complete a project and its labor costs, on the assumption that labor is half of the material costs.
Estimate the Quantity
Estimating the quantity of materials needed is important. When doing so, you’ll need to remember how the product is sold, its size, and its price per unit.
Remember that construction materials won’t always fit your project scope – some may require customization. For certain fixtures, like aluminium windows, that are sold per unit, you may need to contact an aluminium windows supplier to have the right size made for your project.
Choose the Materials
Once you have the quantity of materials needed, you’ll need to choose the exact material with its specifications in mind. As we mentioned at the start of this section, you’ll need to speak with your engineers and architects to know their exact requirements for the project.
When you have the list of required materials as well as the quantity, you may now start approaching different construction material suppliers for quotations.
Account for Waste
During the construction process, material wastage is inevitable. Here are some of the most common reasons for material waste:
- Excess material from fabrication or installation.
- Damaged during transportation or storage.
- Human error
- Weather damage
The bottom line is that waste is normal and should be included in construction material estimations. Forgetting to include waste in your estimations can lead to fund and material shortages.
A good rule of thumb is to add an extra ten percent to your estimations for waste.
Consider Suppliers
As soon as you have the quantity and the materials listed for your project, you’ll need to start sending out this list to suppliers for a quotation of their goods. Make sure to talk to multiple suppliers and ask if they have any deals on bulk purchases so you can compare prices.
Don’t forget to take shipping into account as well. One supplier may give better prices, but their shipping fees may outweigh their competitive pricing.
During this phase, you should also take note of any suppliers that can manufacture customized solutions. In some cases, having customized solutions manufactured can result in less waste and more savings. For example, steel reinforcement suppliers understand that working with steel can be difficult, and if manipulated incorrectly, it can lead to wastage and loss of time. This is why some suppliers offer customized steel solutions.
Think Ahead
Aside from wastage and design modifications, you should also consider that the price of materials may change over time. Make sure to account for market fluctuations when estimating costs for your project. This will help keep your project well within budget.
Divide the Project into Phases
When estimating the costs for your project, make sure to divide the costs into different phases. Remember that market prices may change over time, and you won’t be acquiring all the materials at once.
This phased approach provides a clearer picture of financial requirements for each stage, enabling improved cash flow management and better overall project control.
Use Software if Available
Nowadays, there is specialized software available that can help contractors come up with an accurate cost estimation. These tools offer significant advantages by automating calculations, providing real-time data analysis, and generating comprehensive reports. It can also reduce the margin of error in material estimates while improving efficiency.
Building Your Structure According to Budget
By now, should have a comprehensive understanding of how to calculate material quantity in construction. Effective construction material estimation is crucial for the success of any project, ensuring you stay within budget and on schedule.
When creating your material estimates, always account for potential waste and project modifications to maintain better cost control and efficient project management. Accurate cost estimation is fundamental to delivering high-quality results and avoiding unnecessary expenses.
Now, all you need to find is a trusted supplier for all your construction material needs like 2M. At 2M, we offer durable construction materials at competitive prices. Reach out to us for all your construction material requirements and ensure your project’s success from start to finish.