As we get older, it’s difficult to transition from some of the basic business principles and construction cost data we followed from other decades. They worked, time and again. Many of them aren’t working now.
If you’re estimating costs using the same formula your company used in 2019, it’s just like assuming you can get a pumpkin-flavored coffee from a snow cone vendor in January for twenty-five cents. You’re using the wrong seasonal considerations and outdated pricing.
3 Reasons to Update Construction Cost Data
We wanted information fast and we got it. Now, we need to keep up with it or we’ll make costly mistakes. In a tight market, that’s exactly what we can’t afford.
Here are 3 reasons to upgrade your construction cost data:
1. If your construction cost data is out-of-date, your estimates will be off. Incremental changes are expected but they should be included in construction cost data sooner rather than later. When we ignore them, incremental changes can add up. The damage can be significant.
2. Inaccurate estimates based on out-of-date construction cost data leads to cost overruns. “Cost overruns can shut down a project altogether,” says construction technology company Gordian*. “From 2020-2021, 57% of construction material costs increased.” Multiply a material cost increase by the number of times you will order that material and you can see projects will realize lower profits.
3. Underestimating costs reduces your credibility. And that can negatively impact customer and contractor relationships. Accurate construction cost data is essential to your brand, from planning through delivery.
Construction Business Data Analytics
Consider the numerous political, global, and technological changes within the past 12 months. That’s why any long-term business plan is no longer realistic.
Robert Snow Means was a civil engineer who kept detailed tracking records for construction equipment, materials, and labor costs. He became a go-to for construction cost data in the 1940s. Gordian offers aptly named RSMeans construction cost data analytics as well as other technological services to the construction industry.
Construction Monitor data analytics are renewed every week. We provide you with customized, geographically relevant data that can influence business decisions and drive marketing strategies for your company.
Contact us today to develop the dataset that will best serve you.
*Construction Monitor does not endorse nor recommend any software solutions, companies, or brands (except our own).