Profit Margin - Labor markup, material markup, general profit, etc.Capital costs - Loan interest, payment processing fee, taxes, etc.Indirect expenses - Administration costs, travel, delivery fees, etc.Client Selections - Appliances, countertops, fixtures, etc.Permits and fees - Inspections, approvals, local permits, etc.Equipment costs - Heavy equipment fees, rentals, gas, power, etc.Subcontractor costs - HVAC, plumbers, designers, landscapers, etc.Labor costs - Labor burden, downtime, overtime, etc.Material costs - Hardware, lumber, concrete, sheetrock, trim, flooring, etc.Site Preparation - Excavation, tear-downs, on-site rentals, disposal, etc.Each category or element may have additional considerations that could impact the cost so it may not be as simple as associating a single cost to any given cost category.Īs you're calculating construction costs, consider each of the following potential cost categories: In order for your estimate to be as thorough and accurate as possible, it's best to at least consider every potential category when calculating the costs for a project. Protip: You can try BuildBook's construction estimating software free for 10 days to see for yourself. Using construction estimating software or a construction estimate template can save you time and money by streamlining the entire process and making sure you don't miss anything. Changes are almost a guarantee in construction, so it's to everyone's benefit not to underestimate or overlook any element of a project.

A good construction cost estimate will account for every element of a project, including room for contingencies, financing costs, profit margin, variances, and other less obvious or unforeseen expenses. Regardless, creating an accurate estimate is essential to ensuring that the project is both profitable for the contractor and affordable for the client. How to accurately calculate construction costs?ĭepending on the type of project, estimating the costs of construction can either be incredibly simple or extremely complex. This Construction Cost Calculator is designed to help you itemize the rate and quantity of each individual element to estimate the total cost of construction project.

House building estimate template