What key factor should contractors consider when estimating project costs?

When estimating project costs, contractors should consider a comprehensive view that includes the cost of materials, labor, and the project scope. This holistic approach ensures that all necessary expenditures are accounted for, leading to a more accurate and realistic budget.

Material costs are essential because they encompass everything from raw materials to any specialty items required for the project. Labor costs must also be factored in, as they cover wages, benefits, and any additional workforce requirements. The project scope plays a critical role, too, as it defines the extent of the work needed and influences both material and labor costs.

By evaluating all three components together, contractors can avoid unforeseen expenses that may arise from neglecting any one aspect. This comprehensive methodology ultimately ensures that contractors can deliver the project within the agreed budget while maintaining quality and adherence to timelines.