By Fernando Rodrigues on August 02, 2024

Budgeting Projects the NEC Way

 

 

 

Budgeting and estimating a construction project involves several key steps to promote financial control and project success. Budgeting and cost estimation is among one of the most important steps in any  project. It requires a keen eye, attention to detail and proactive thinking to create a budget or estimate with accuracy. We asked Director of Estimating,  Fernando Rodrigues to outline the NEC way of creating a comprehensive and trustworthy cost estimate or budget.

What is the NEC process for budgeting projects with limited information?

A project with limited information, which often happens during the initial phase of project before the documents are fully developed, can be tricky for an estimating team. To make sure we provide detailed and precise budget we review historical data from similar type projects. We'll analyze the historical costs of materials, similar scopes of work from subcontractors and financial challenges on previous projects. Our team will request and perform a site walkthrough to fully understand the scope and what will be required to get the project completed successfully. We'll involve our network of subcontractors to help us finalize costs so we are presenting and accurate look at what the project should cost. 

How do you think NEC sets itself apart from other GCs with our cost estimating and budgeting practices?

We are extremely detail oriented while we evaluate the project documents and data for our cost estimates. Our budgets are not just cost per square foot summaries, they are detailed and well thought out estimates that we stand behind. We look at each estimate with a fine tooth comb before we submit to the client, which does take time, but will likely alleviate items getting missed. When we turn over our estimates and budgets we'll help the project team keep the overall design within our original budget. 

How would you explain to a client the level of confidence we have in our budgets and estimates?

Our estimating team is experienced and has budgeted many projects of all sizes in several market verticals. The final cost of the project at completion in comparison to our original budget show our clients the confidence we have in our budgets. NEC has a vested interest in hitting our original cost estimates, otherwise our clients suffer financial difficulties or projects do not get built. Our client's money is our money. We feel strongly about maintaining that mindset and it has worked for us, and for our clients. 

 

 

 

 

Fernando Rodrigues is the Director of Estimating at New England Construction. He can be reached at frodrigues@neconstruction.com or on LinkedIn

Published by Fernando Rodrigues August 2, 2024