Successful general contractors understand that accurate cost estimates are essential to both project and organizational success. For decades, the cost of construction has been a function of marketplaces: labor, materials, insurances and fees. However, given increasing project complexity and greater technological capabilities, this reality is changing. The need to both understand and quantify the risk in performing complex projects will shape the way cost estimates evolve in the very near future.

WHY ACCURATE COST ESTIMATES ARE CRITICAL

It is safe to say that cost overruns have become common across the construction industry. According to a study from KPMG, just 31% of all construction projects from the past three years have been completed within 10% of their initial budget.

Reprinted courtesy of Justin Levine, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.