Three reasons why project managers should cost estimate
With rising construction prices, robust cost estimation is more critical than ever. Any project manager knows that budget and schedule are arguably the most important indicators of a project’s success. Yet, historically, they haven’t dedicated enough resources to prioritising these from the get-go.
Cost estimation is the practice of ensuring schemes stay to budget and schedule by calculating the direct and indirect expenses at every stage of a project. It effectively informs decision-makers if a specific project will be feasible to bid on.
In this blog, we look at what good cost estimation for construction projects looks like within the energy, defence, and infrastructure sectors, and how implementing it effectively will impact the future of major projects.
If you’re short on time, here’s our quick checklist for good cost estimation:
A tailored strategy and plan
Fully integrated across the lifecycle of a project
Transparency with all stakeholders
Flexible by design
Consideration of market trends
It produces competitive tender bids
An accurate estimate, which aligns with industry best practices, ensures a tender bid is competitive and realistic. It means any variances between supplier quotes and original estimates can be addressed early, and risks associated with cost overruns or incomplete project scopes are minimised, reducing financial errors and project delays.
This creates more effective negotiations in the tender process, in addition to improving resource allocation, contractor selection, and project timeline planning, leading to smoother execution.
Ultimately, having specialised knowledge ensures tender bids are accurately estimated according to sector-specific nuances and standards.
Why working with a specialist project controls consultancy ensures success.
The Blueprint team offers an innovative and dynamic estimating function, and our highly skilled estimators are on hand to speak with you about our services and offerings.
Independent assessments for objectivity across any stage of project execution.
As a specialist consultancy, we can provide unbiased assessments of project estimates, acting as a third-party voice to help make more informed decisions.
Our dedicated team of estimators can work in any capacity that may be required, whether that’s managing the estimating process entirely, handling pre-specified packages, providing retained support, or having extra hands on deck for a specific project. This means you don’t pay for anything unnecessary, and we adapt depending on the scalability and flexibility required.
Holistic support across the project controls function.
We offer an integrated approach to risk management, where cost estimating is inseparable. This provides managers with reliable, data-driven insights when it comes to potential uncertainties, leading to better forecasting and stronger cost control.
Our specialist academy can empower your team in this essential practice.
We offer an ECITB-approved training course in cost estimating, either as a stand-alone module or as part of our comprehensive Project Controls Training at the Blueprint Academy. Across the two-day cost estimation course, learners become familiar with both theoretical knowledge and practical hands-on experience. They will develop a thorough understanding of how to derive an estimate, the details involved, and the service provided.
Learn more in our Project Controls Training Hub.
Nick Morgan-Jones
Meet Nick
Estimating technical lead Nick Morgan-Jones has two decades of experience as a highly qualified project controls manager, estimator, and risk manager, working on nuclear power station fleets across operations, defuelling, and decommissioning projects. He is committed to the ever-evolving practice of cost estimation, sitting on the panel responsible for implementing a new ‘British Standard for Estimation’.
Want to strengthen your approach to cost estimation?
Discover how we support major energy, defence, and infrastructure projects across the UK here.
