Article · Price
Why estimates grow
and how to stop it
Estimates grow not because of inflation but because they were calculated from a sketch. We go through five reasons and what the contract must contain so the price does not change.
·
In short
A sketch estimate
is only a guess
Most estimates on the market are made before the design: by area and price per square metre.
Such a figure is fine for a first conversation, not for a contract. Quantities of concrete, rebar, earthworks and utilities are known only from the working design.
Anything not counted before the start is added during construction, at the client's expense.
Causes
Five sources
of estimate growth
Each of them is removed before work starts, not during construction.
- 01
No working design
Quantities are guessed, and the difference shows up on site.
- 02
Geology not checked
Weak soil or groundwater changes the foundation, the most expensive part of the frame.
- 03
No material grades
“Concrete” instead of a specific class lets a contractor swap the material or rewrite the price.
- 04
Price tied to the market
The contract allows recalculation when rebar, concrete or exchange rates go up.
- 05
Changes without an addendum
The client asks for small things and at the end gets one bill for all of them.
Contract
What to fix
before the start
- Estimate
- An annex to the contract with quantities and prices for every type of work
- Specifications
- Concrete, rebar, windows, facade, with specific grades
- Price
- Firm, with no recalculation for exchange rates or price rises
- Changes
- Only by addendum and before work starts
- Payment
- In stages, after the acceptance act is signed
- Responsibility
- Penalties for delays caused by the contractor
Questions
In short
the essentials
How do I get an accurate estimate?
Through a working design: its estimate becomes an annex to the contract. We quote the cost of design at the first meeting.
Why are others cheaper?
Often because utilities, the facade or earthworks were left out of the figure. Compare estimates for the same scope of work.
What if I want to change the design myself?
We price only the difference, sign an addendum, and only then start the work.
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Get an estimate
that will not change
First we review your brief. Then we propose the scope of works, a realistic schedule and how the price will be calculated.
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- 01Brief
- 02Design
- 03Estimate
- 04Lock-in