5 Keys to Early Cost Estimating in Commercial Pre-Construction

man looking at construction plans on a wood table

Staying within budget is one of the most important factors in any commercial construction project. There are many decisions to be made throughout the construction process, and an accurate estimate is essential to ensure that the overarching plan for your project is sound. The pre-construction phase helps build a solid foundation for commercial construction, especially when it comes to early cost estimating. 

5 Keys to Early Cost Estimating in Commercial Pre-Construction

Over the years, our pre-construction team has developed hundreds of preliminary and detailed cost estimates. Here are a few best practices we’ve learned when it comes to providing a comprehensive and accurate cost estimate to project owners during the bidding process and pre-construction phase:

1. Include the construction team early in the design process.

Historically, the pre-construction process has been limited to the building owner, design team, and their engineers, who employed the traditional design-bid-build approach and didn’t see project plans until the design was complete. Today, a more helpful trend is emerging to give contractors a voice in early project planning. 

Many design-build leaders recognize the benefits of pre-construction estimating as the project design evolves from concept drawings to construction drawings. This approach to pre-construction is key for accurate cost estimating and providing the project owners with the best possible outcome.  

2. Cultivate open communication with architects and design teams.

Candid and respectful communication can make a tremendous difference in the overall success of a project. This is especially true as pre-construction teams work alongside architects and project owners to estimate potential costs. In order to begin with the end in mind, the team must openly discuss spending considerations, project priorities, and budget constraints. By doing this, the architects can plan and design the project to fit within the budget. Additionally, it helps the pre-construction estimator to provide guidance when the project plan, such as design ideas or materials, goes beyond the budget limit.

3. Offer real-time estimates during the pre-construction phase.

Another benefit of getting involved early is that it allows the estimator to offer “in-between” estimating during design meetings to guide the design process. These micro-estimates provide real-time cost feedback, helping designers to make informed decisions about the use of different products or construction methods. This makes a tremendous difference in accelerating the bidding and budgeting process and eliminates much of the back-and-forth of budget reviews.

4. Factor in current market conditions and supply costs. 

Since the pandemic, we’ve seen prices spike in nearly every area of commercial construction. Some material costs and supply chain issues have subsided, but knowing the current state of the market is critical for cost estimating. Contractors have a pulse on current supply issues and costs. Anticipating and planning for them is critical for early cost estimating and navigating the rising costs of commercial construction.

5. Support experience and intuition with technology. 

Cost estimating has the potential to be stressful, especially when you’re working on a multi-million dollar project with hundreds of variables. Thankfully, construction cost estimating software is a helpful tool for creating an accurate and comprehensive estimate. In addition to incorporating BIM models, ​this software can help forecast labor, materials, and other overhead costs, which helps estimators prepare precise, accurate estimates. 

Cost Estimation: One Factor for a Solid Foundation

Pre-construction offers a solid foundation for a successful construction project. Cost estimating is an important part, but it’s also helpful to consider other factors such as procurement, site conditions, and scheduling. 

At Crain, we want to help our clients maximize the value of their projects and build a structure they can be proud to put their name on. We can maximize your investment in commercial properties, and we are committed to helping you achieve your goals. Connect with our team today to get started.

Related Projects

exterior of new lexus dealership in nashville
An Inside Look at the Lexus of Cool Springs Auto Dealership Renovation

Today’s car dealerships are no longer just places to buy a vehicle. Instead, they’re evolving into experience centers. Dealerships need facilities that reflect their brand and support a more efficient and future-ready operation. Modern customer expectations are prompting dealership owners to invest in dealership renovations that enhance the customer experience, streamline operations, and ultimately increase...

aloft hotel building exterior
The Rise of Modular Design in Hotel Construction—and the Factors That Make It Work

Modular construction is becoming more common in hospitality projects across the country. For developers building in high-demand markets like Nashville, modular construction can offer significant advantages. At Crain Construction, we’ve been incorporating modular principles into our work for years. As the hospitality market continues to evolve, we’re seeing modular approaches play an even bigger role....

crain construction employees in safety vests in a warehouse
A Culture of Longevity: Why Employees Stay at Crain

Crain Construction’s employee retention directly reflects our commitment to people and our culture. With half of our team working at the company for over a decade, and more than 30% remaining with us for 20 years or more, it’s clear that something special is happening here. But that kind of loyalty doesn’t happen by accident. ...

newly constructed senior living facility building nashville
Tariffs and Commercial Construction: Our Guide to Building Smarter in a Shifting Market

Our city has weathered a lot in recent years, but Nashville’s commercial construction industry is now facing a new challenge: tariffs and the ripple effects they may have. These changes raise important questions: How can we keep projects on track? What strategies actually help reduce risk? And how can developers continue to build effectively in...

Community

We partner with organizations to invest, give back and make a positive impact on the communities where we live and work.

Blog

Get the latest Crain Construction Blogs and interesting insights about our projects and community endeavors here.

When you’re ready to build, we’re here for you

Reach out to start a conversation with our team.