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How Location Affects Your Construction Estimate

Mr same By Mr same April 16, 2024 5 Min Read
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Hey there, fellow builders and estimators! Today, I want to chat about something that’s always at the forefront of our minds when we’re kicking off a new project: construction estimates. But not just any estimates—how the where can dramatically impact the how much. That’s right, I’m talking about location, location, location!

As someone who’s been in the trenches (literally) in both Canada and the US, I’ve seen firsthand how different one city can be from the next, and not just in terms of the weather. So, grab a coffee, and let’s dive into the nitty-gritty of why where you build can make or break your budget.

The Lay of the Land: Material Costs

Ever tried sourcing lumber in a desert city? Yeah, not fun (or cheap). Geography plays a big role in material costs. For instance, building near the coast might give you easier access to imported goods but watch out for those transportation surcharges. I remember this one project where we were building a cozy cabin in the woods—sounds idyllic, right? Well, the cost of getting materials out there was anything but.

Pro Tip: Always factor in the ‘hidden’ costs of material transportation. It can be a game-changer for your Construction Estimate.

Labor of Love: Costs and Availability

Labor costs can swing more than a pendulum, and it’s all about the local economy. In bustling cities, you might find a plethora of skilled labor, but their rates will reflect the high demand. Conversely, in more rural areas, finding that skilled craftsman could turn into a quest of epic proportions. I recall a project where we had to fly in a specialist from two states over—let’s just say the budget felt that one.

Rules of the Game: Regulations and Codes

This is where things get spicy. Every locale has its own set of building codes and regulations, and they can vary wildly. I once had a project delayed because the local code required a specific type of insulation that we hadn’t factored into our initial estimate. Lesson learned.

Make friends with the local building department. It’s worth its weight in gold—or at least in avoided fines and delays.

Weathering the Storm: Climate Considerations

Building in Miami? You’re looking at hurricane-proofing expenses. Setting up in the Rockies? Snow load considerations are your new best friend. Climate not only affects the types of materials you’ll need but also your construction timeline (and we all know time is money).

Groundwork: Site-Specific Challenges

Ever tried to lay a foundation on a steep slope or dealt with bedrock where you planned to dig? Fun times. Site-specific challenges like these can send your estimates into a tailspin if you’re not careful.

Local Economy and Market Demand

The local housing market and economy can be a double-edged sword. In a hot market, you might find yourself paying a premium for both labor and materials due to high demand. On the flip side, in a slower market, you could snag some deals—if you play your cards right.

Pinpoint Precision: Location-Based Estimating

All these factors underscore the importance of location-based estimating. Tools like Bolster can be a lifesaver, helping you adjust your estimates based on local data and insights.

Remember that cabin in the woods I mentioned? Well, leveraging local knowledge and adjusting our estimates for the geographical quirks saved the project (and our budget). Check out this guide on Mastering the Art of Construction Estimating for more tips and tricks.

Wrapping Up

Every location has its unique challenges and opportunities, and understanding these is key to providing accurate and reliable estimates. Whether you’re dealing with the bustling streets of New York or the serene landscapes of the Canadian Rockies, keeping these factors in mind will ensure your projects start on the right foot.

Got any location-based estimating horror stories or wins? I’d love to hear them. Drop a comment below, and let’s keep the conversation going. And if you’re looking to up your estimating game, be sure to check out Bolster’s Estimating Software—it’s a game-changer.

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