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As inflation affects economies around the world, the construction industry is feeling the effects of increased pricing — from the skyrocketing prices of steel, lumber, and fuel to the significantly increased cost of skilled labor👷🏾♂️
No doubt, the demand for infrastructure in today’s post-COVID world has led to increased construction activity. However, the increasing cost of materials and supply chain issues have rapidly driven up development prices and created pressure within the industry 📈
No one has a crystal ball to predict the future 🔮…Nevertheless, having the right data, asking the right questions, and applying the right techniques is the best way to develop a robust estimation technique, which can help you navigate projects through volatile and uncertain market conditions!
No one has a crystal ball to predict the future 🔮…Nevertheless, having the right data, asking the right questions, and applying the right techniques is the best way to develop a robust estimation technique,
How Pathscape saves $$$$ on projects
Pathscape.app tracks the following cost data to enable you estimate ongoing project costs:
Baseline budget carries a projected amount for the entire project. This usually contains a buffer amount to cover budget risks.
Planned budget is the total sum of task material and labor costs within a project.
Actual cost which tracks material and labor costs that have been consumed within tasks.
With these three data points, your team can compute an Estimate at Completion for ongoing projects using the Earned Value recorded by your project engineer on site.
Estimate at Completion = An estimate of remaining costs for a more dynamic picture of the project budget given events, developments, or obstacles that have changed the initial estimate.
Earned Value = The value of actual work performed on site
In addition to estimates, you can reach agreements with your suppliers to select the right pricing, contractual and procurement strategies in order to minimize the risk of inflation.
There are many more features within Pathscape that we will explore, we look forward to sharing more in our next post!
Have a great week! Team Pathscape
