Niv Levy brings a rare combination of legal and construction leadership experience to discussions around construction estimating and profit control. As President of Home Vision Remodel in Los Angeles, he oversees project estimation, on-site management, regulatory compliance, and client relations, giving him direct exposure to how estimating decisions influence financial outcomes on active projects. At the same time, his role as President of Levy Law Offices informs his understanding of contract structure, risk allocation, and cost recovery, which are closely tied to estimating accuracy. Drawing from his work across residential and commercial projects, Niv Levy has observed how overlooked labor assumptions, incomplete scopes, and pricing volatility can undermine otherwise well-executed construction work. His combined background allows him to approach estimating not only as a numerical exercise, but as a strategic process that balances operational realities, legal obligations, and long-term business sustainability.
Construction Estimating Mistakes That Affect Profit
Accurate estimating drives profitability in the construction and remodelling industry. Highly skilled builders alike might struggle financially when their estimates do not capture the actual risks, execution realities, and project costs. Margin erosion can stem from multiple projects. Therefore, they should avoid estimating mistakes that negatively impact profitability, such as underestimating labor costs and productivity.
Contractors often rely on hourly rates without necessarily accounting for productivity losses arising from site conditions, weather delays, learning curves on complex scopes, and sequencing conflicts. Labor estimates might include payroll taxes, workers’ compensation, overtime premiums, and supervision time.
To avoid these mistakes, contractors should keep tabs on historical labor performance by trade and project type. Using real production data, rather than assumptions, enables more accurate forecasting. Also, building labor contingencies into estimates and adjusting productivity based on project complexity protects margins.
Further, profit margins tend to disappear when estimates do not capture the full scope of work. Factors such as missing demolition details, temporary protection, inspections, cleanups, or permits can turn profitable projects into losses. In remodelling, hidden conditions under floors or behind walls might expose the contractor to costs that they cannot recover.
Thus, contractors should use a detailed checklist and standardized estimating templates to ensure that they do not overlook anything. Reviewing plans, site conditions, and specifications before pricing is also important. Experienced estimators often include room for unforeseen conditions, especially in renovation projects.
Failing to account for material price volatility is a common estimating mistake that can quickly erode construction margins. Material costs regularly fluctuate due to supply chain disruptions, labor shortages, tariffs, and shifting market demand. When contractors rely on outdated supplier quotes or assume stable pricing, they often absorb cost increases themselves, especially on longer projects. In recent years, this risk has intensified, making material pricing discipline more critical than ever.
Estimators can reduce exposure by securing current supplier pricing and confirming quote validity. Shortening pricing validity periods, including escalation clauses in contracts, and building material contingencies into estimates all help protect profitability. Maintaining strong relationships with vendors also improves pricing accuracy and early visibility into potential increases.
Ignoring overhead and true job costs can also impact profitability. Many contractors focus only on direct costs such as labor and materials while underestimating expenses like office staff, insurance, software, vehicles, marketing, licensing, and management time. Contractors who do not properly allocate these costs may appear busy while quietly losing money on every project.
Overreliance on square-foot or rule-of-thumb pricing further compounds estimating risk. While these methods can help with early budgeting, they rarely capture the complexity of real-world construction. Projects of similar size can differ significantly in finishes, access, sequencing, and code requirements. Accurate estimates require detailed takeoffs and trade-specific pricing, with conceptual pricing reserved for early feasibility discussions and refined while finalizing project details.
Every construction project involves risk, from design changes and weather delays to subcontractor issues and inspection setbacks. When estimates fail to account for contingencies, even minor disruptions can wipe out profit. Smart estimators protect margins by building contingency allowances that reflect project complexity, schedule pressure, and scope uncertainty, while clearly communicating these risks to clients to set realistic expectations and support smoother project execution.
About Niv Levy
Niv Levy is the President of Home Vision Remodel, where he leads construction project estimation, management, and operational oversight across residential and commercial work. He is also the President of Levy Law Offices, a Beverly Hills based legal practice focused on contract drafting, review, and breach of contract matters. His combined experience in construction and law informs his approach to project planning, risk management, and cost control. Niv holds a Juris Doctor from Southwestern Law School and completed his undergraduate studies at the University of California, Santa Barbara.