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.
If you’re a business owner and you take on a project out of the goodness of your heart, recognize that you might not get paid and you’ll be the one funding the project.
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.
You should stop providing free estimates. It’s called free consulting, and you won’t be successful giving away your time. (Guest Article from David Lupberger, Remodel Force)
A building owner challenges our statement that contractors shouldn’t itemize their estimates.
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.
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.