For a contractor, what is the primary concern when estimating project costs?

The primary concern for a contractor when estimating project costs is to accurately account for all potential expenses. This involves a comprehensive analysis of materials, labor, equipment, overhead, and any potential unforeseen costs that may arise during the project. By ensuring that all expenses are accounted for, the contractor not only protects their own financial interests but also establishes a reliable budget for the client, which helps in minimizing disputes and misunderstandings later on. Accurate cost estimation is crucial to maintaining project profitability and adhering to project timelines.

Other approaches, such as aiming for the lowest prices or minimizing time spent on estimation, may lead to inadequate budgeting and potential project failure. Likewise, while it’s important to consider client expectations, merely aligning with these without a thorough accounting of costs can result in underestimating the project’s needs, ultimately leading to issues in execution and satisfaction.