His salesperson sold a kitchen remodel without resolving some details. The homeowner insisted it wouldn’t be a big deal. It was a big deal.
Estimating Construction Profitably is a guide to estimating; or more accurately, a guide to creating your own estimating system.
Unit cost estimating is breaking down a project to simple assemblies. It’s the best way to consistently acquire accurate estimates.
Getting a commitment from potential clients is critical if you want to save yourself a ton of time and work putting together an estimate that won’t go anywhere. You have better things to do with your time.
Our last newsletter triggered a question on estimating labor.
Estimating the cost of a remodeling, renovation or specialty project accurately is critical if you want to be profitable.
After reading our books and trying to do things right, why is he still not making any money?
When you own a small business you wear a lot of hats. Understanding the numbers might not be your favorite hat, but numbers are important because they show where you stand financially.
I’ve been around the construction industry long enough to know that it isn’t always rosy. When a recession hits, construction is one of the early victims.
To be blunt: projects like this are a waste of time. I’ve rarely if ever seen a request like this turn into a contract
Estimating is necessary, but it isn’t easy; it’s hard, tedious work. There are four basic things you need before you begin your estimate.
Using the wrong labor rate, or using someone else’s markup when you don’t know their assumptions, is one of the biggest mistakes we see and the difference can be thousands of dollars.
What you do has value. Respect your time and your knowledge.
Estimate your jobs properly so surprises don’t happen.
If you want to make the best use of your time and not allow others to waste your time, don’t estimate major projects without a design agreement.
Estimating construction isn’t easy. When profits are down, missing the estimate on jobs is almost always part of the reason.
Error factors, Superman complex, Demolition and Discovery agreements, hauling out the trash.
Know the inspectors required in your area and add an “inspector factor” to your estimates.
You have a choice in how you do your estimating. Some methods work well, but unfortunately, many don't.
The purpose of an estimate is to price the job. If you want to be profitable, accuracy matters.
My clients are constantly chiseling me down, everyone makes money on the jobs except me.
Why clients request itemized estimates, and how you should respond.
Estimating errors cost money. Lower your error factor by considering these common mistakes.
The basics of construction estimating, so you can create more accurate estimates in a shorter time.
If you forget to include the cost of insulation, you’ll be paying for it out of your own pocket.
A homeowner commented on a forum. He’d been told to add $3 – $5K to a job just to cover the extras that will come up. He was under the impression this is normal.
During a recent survey, comments were made about price fixing. They referenced the Sherman Antitrust Act and association warnings about the appearance of price fixing.