How COVID -19 is Impacting Construction Estimating Services

Construction Estimating Construction-Estimating-services

COVID -19 is having an enormous amount of impact on every aspect of our day to day life. The Pandemic has its affect on all the sectors including estimation service . With the gradual relaxations of lockdown provided by the government, construction estimating is resuming but with certain uncertainties. The social distancing and added regulations that needs to be followed there will be increased expenses that will have an impact on the ongoing as well as upcoming estimation projects. Here we list down the impacts Covid-19 will have on the estimation industry.

Cost escalation

In the short term, the cost will definitely go up and schedules will be extended. Imagine working at half strength along with physical distancing and safety rules which will lead to decreased productivity. Also, the supply chain is heavily impacted due to the shutdowns around the world which will lead to heavy backlogs on the restart and extended time to receive the required raw materials.

Skilled labor 

There will be a shortage of skilled labor as workers will be skeptical of returning to work with the concern about their safety and their families. It is very critical for construction companies to put detailed safety regulations in place to increase trust among the workers.
While the above points will have a direct impact on the construction estimation service as raw materials and labor costs constituted a substantial part of the estimation process. Most of the contractors are fixed cost contracts which are defined by terms agreed upon at the beginning of the project. These types of projects will have the highest impact and they need to re-negotiate their contract terms for sustainability. There will also be the following challenges related to the future estimation process.

Increased competition

With reduced owners’ budgets, a lot of project opportunities may become unaffordable leading to fewer opportunities. This will again increase the competition among the contractors and they may be tempted to cut costs to win those contracts. Construction estimating contractors might underestimate real costs leading to unrealistic costs.

Zero room for error

With reduced costs, there will be no room for error. Generally, estimators mark up their estimates by a certain margin to account for unforeseen cost escalation. But with tight competition contractors might forgo this markup for less contract value.

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Increased indirect costs

While labor and material costs account for the bulk of any construction project, indirect costs are not to be ignored. Covid-19 has to lead to a lot of indirect costs which an estimator definitely needs to take into account. Some of the COVID-19 related indirect costs that need to be included in the estimation process are:

• Temperature checks
• Social distancing
• Regular disinfection of machinery, tools, and premises
• Availability of hand sanitizer and PPE kit (if needed)
• COVID test if deemed necessary

How can Chase Estimating help

We at Chase Estimating understand that it is a critical time and you may be concerned about the estimation process. We are ranked as one of the leading estimator companies in the UK and provide a varied range of estimation services ranging from mechanical, electrical, and insulation works. We have highly experienced estimators with a proven track record of quality construction estimating service. Our estimators take all the Covid-19 related uncertainties into account to provide you with the best possible estimate. Do reach out to us at 01630417161 or email us your details at for any requests or queries.

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