What is one common method to improve the accuracy of estimates?

Engaging in thorough market research is a fundamental strategy to enhance the accuracy of cost estimates in construction projects. This approach involves collecting and analyzing data on various factors that influence costs, such as labor rates, material prices, project timelines, and regional economic conditions. By understanding current market trends, an estimator can make more informed predictions about future costs and avoid discrepancies that arise when estimates are based on outdated or localized data.

Additionally, comprehensive market research allows estimators to benchmark their calculations against industry standards, leading to a more precise and competitive estimate. This practice helps to account for variables like inflation, supply chain fluctuations, and demands for labor, ultimately leading to a budget that reflects true market conditions. In contrast, relying on a single past project or solely on contractor estimates can provide a limited perspective, while avoiding technology undermines efficiency and accuracy in data analysis.