The construction new dawn – thriving with HBXL Estimating Service
As the private housing sector gathers momentum and begins to see the construction new dawn, developers and house builders wanting to profitably kick start developments can make use of a new estimating service that has already taken the sector by storm.
Developed by HBXL, the building software specialists, the HBXL Estimating Service has already been used to quote in excess of £40 million worth of projects helping developers generate decent returns and improving their bottom line.
The latest innovation from the leading building software developer, it provides property developers with a totally accurate budget on how much a project will cost right from the outset.
It can also be used before a site has been purchased to ensure a realistic feasibility study of the likely profit to be made.
And with 90% of building projects going over budget, the availability of this new service means developers will be able to work out the likely profit margin at the start.
Detailing what’s required right down to the very last screw, the accuracy of the service means nothing is missed and is a great way for house builders to project what they are likely to make.
In addition, the service provides build programmes which helps plan cash flow and when materials, labour, plant and subcontract are needed on site in the form of Just in Time (JUT) schedules.
The ability to timetable and co-ordinate what resources are required and when means no costly delays to site progress, a problem which could (and been known to) result in a project being delayed or even jeopardise the whole thing!
Joanna Mulgrew, sales and marketing director at HBXL said: “It is great news that the beleaguered house-building sector is now showing distinct signs of recovery. However, margins are still tight.
“To have a highly accurate, up front estimate at the beginning of a project is essential for any developer or house builder. It means the profit margin is known and assists with the management of cash flow.
“To also have a realistic build programme together with JIT schedules, which are supplied as reports, will also help save money. As any developer knows, time is money and running over on any programme will cost, especially if a lender is involved.
“What we’ve done is taken the hassle out of not only producing the estimate but putting together a sensible programme of works.
“The cash flow report, which also comes with the service, is very useful especially for those developers needing to secure finance from third parties.”
To make use of the service all developers or house builders have to do is send the plans to HBXL where expert estimators will price it quickly and accurately.
Ideal for new builds, apartments, conversions or multi-site developments prices start from £140 for a loft conversion and £199 for a new build.
The developer will then receive a detailed estimate report pack outlining a summary of the project’s cost, detailed cost breakdown for materials, plant and labour, cost breakdown of each build phase, cash flow projection and a build program for when each part of the project will take place.
For builders developing houses for private individuals, the customer quote which the service provides as a Word file is really useful as it shows the client a complete cost breakdown, including mark-up, which can be easily edited before it is shown to customers so the builder doesn’t even have to write up the quotation.
Joanna added: “Using a professional estimating service puts the developer in control of the project, allowing them to assess quotes from suppliers and subcontractors while managing costs successfully.
“To neglect using a service which provides a sound cashflow plan, build programme and also expedites the time developers spend on estimates doesn’t sound like good business sense.”
For details on the HBXL Estimating Service please call T: 0845 1234 095