Cost Forecasting Software
Know your costs at every step.
Keep track of quotes, supply costs, and other expenses as they happen in a single interface that gives you a running total of expected project costs.
Organize Cost Forecasts
Cost forecasts are grouped into three basic types (budget, contract, and project), allowing you to access a particular area quickly if you need to make a change.
All parties have access to potential change orders, subcontract change orders, and project change orders so that no one is caught off guard.
Visualize Your Finances
View your cost forecast as a chart so you can track and contrast projected costs with actual costs from invoices as the project progresses. Add comments to important dates, events, and contracts as needed.
Assign Forecasts to the Right People
ProjectSight allows you to send alerts and courtesy copies of information to specific team members, notifying them of changes to the forecast that impact them.
Construction cost forecasting is collecting all of the anticipated expenses for a project and mapping them out over a set cost period or by month. These costs include subcontractor quotes, building supply costs, and any other foreseeable expenses. Cost forecasts are based on analysis of past projects and current project information.
Generally, methods of construction forecasting are either quantitative or qualitative. Quantitative methods use statistical analysis, machine learning, and other scientific predictions based on historical data to come up with a forecast. Qualitative methods are based on expert experience and strategic planning.
The fluctuating prices of building materials over the past few years have made accuracy in construction cost forecasting difficult to achieve. Another major challenge to construction forecasting is the current scarcity of skilled laborers. While the shortage isn’t as severe as it was a few years ago, many subcontractors still struggle to find enough workers, often resulting in unexpected increases to a project’s labor costs.
Forecasting always carries a level of uncertainty, but here are a few best practices for a more accurate construction cost forecasting process:
- Adapt to new information
As the project progresses, update your forecast to incorporate changing material costs and other unexpected expenses. Trimble Supplier Xchange can help with this process.
- Stay up to date
Make sure you are keeping track of expected industry changes. Government policy, local economic factors, and natural disasters can have a huge impact. For example, if there is a massive wildfire in Canada, expect that to raise the price of lumber—even if it hasn’t hit the market yet.
- Build a coalition
Working closely with contractors and suppliers and building good relationships means they will be more likely to keep you in the loop about any changes happening in the industry. The people on the ground know the most about what is going on.
- Stay in constant contact
Encourage clear and frequent communication between all stakeholders. The industry can change fast, and if you are only checking in once a quarter, someone is working from old information.