How to Appraise Construction Costs

Work closely with your contractor when appraising the construction costs. Your contractor can let you know the cost of labor for the regular crew and subcontractors, and the cost of materials for the project.

Add the cost of purchasing the land if this is part of the construction project, such as when you build a new home. You can add the cost of land purchases to a construction loan.

Get assistance from a professional cost estimator in the construction industry. A cost estimator usually has a degree in construction management or a similar field and can help you double check all costs associated with the project to ensure accuracy. The cost estimator determines whether the price matches what he feels the price should be after he's actually visited the construction site and assessed it. For example, if you're being charged more because extra work needs to be done to set up proper sewage at a site, a cost estimator will know exactly which materials and what kind of labor is necessary for the specific sewage conditions.

Calculate the construction costs yourself using construction calculators, such as the ones offered by Building-Cost.net. These calculators work by taking you step-by-step through your specific needs. For some information, such as the square feet of home construction, you will type in the number itself. For other pieces of information, you will check boxes that pertain to you, such as a box that indicates the material out of which you want your walls to be built. Some calculators will also require specific information that is based on information that you have already given them. The more sources you have as a reference, the better case you can make with the financial institution about the full amount you need to complete the project.