Construction Estimating What it takes to estimate consistently www.construction-estimating.com

Measurable Results You must have measurable results- Everything must be based on a unit of measure Costs per linear foot, square foot, square yard, cubic centimeter, and so on. Labor production must also be taken off in minutes or hours per unit of measure.

You must have measurable results-

Everything must be based on a unit of measure

Costs per linear foot, square foot, square yard, cubic centimeter, and so on.

Labor production must also be taken off in minutes or hours per unit of measure.

Estimating By Sections Each estimate should be broken down into categories or sections… I prefer sections. Examples of sections Foundations Framing Roofing Plumbing Etc.

Each estimate should be broken down into categories or sections… I prefer sections.

Examples of sections

Foundations

Framing

Roofing

Plumbing

Etc.

Job Cost While the job is going (if it’s more than a couple of weeks) or after the job if short at the end of the job Compare the actual cost of each category or section to budgeted/estimated cost Compare the labor cost for each category or section to budgeted/estimated cost

While the job is going (if it’s more than a couple of weeks) or after the job if short at the end of the job

Compare the actual cost of each category or section to budgeted/estimated cost

Compare the labor cost for each category or section to budgeted/estimated cost

Job Cost Errors If you find areas where you are over budget Or areas you are under budget – This is just as critical Start by looking at the forest rather than the trees i.e. compare budget to actual section by section

If you find areas where you are over budget

Or areas you are under budget – This is just as critical

Start by looking at the forest rather than the trees

i.e. compare budget to actual section by section

How to Track Down the Variance Start by reviewing your take off quantity e.g. the length of the wall compared to the actual length of the wall Review the cost entry into your accounting system. Were all the costs entered to the correct section? Were the labor hours entered to the correct section?

Start by reviewing your take off quantity e.g. the length of the wall compared to the actual length of the wall

Review the cost entry into your accounting system.

Were all the costs entered to the correct section?

Were the labor hours entered to the correct section?

Tracking Variance – Cont’d Were there unforeseen problems on the job? Sometimes things just go bad beyond your control If nothing else then you need to adjust your estimating

Were there unforeseen problems on the job?

Sometimes things just go bad beyond your control

If nothing else then you need to adjust your estimating

Adjusting Your Estimating Let’s say you were figuring the materials for the wall were going to cost $1.25 per linear foot. The materials should have cost $25.00 for a 20 foot wall. The actual cost was $35.00 for the materials

Let’s say you were figuring the materials for the wall were going to cost $1.25 per linear foot.

The materials should have cost $25.00 for a 20 foot wall.

The actual cost was $35.00 for the materials

Adjusting Estimating – Cont’d To adjust your estimating for next time, divide the $35.00 by the 20 linear feet to come up with a new price per foot 35.00/20 = 1.75 – the new price per foot Enter the new value into your estimating program or spreadsheet

To adjust your estimating for next time, divide the $35.00 by the 20 linear feet to come up with a new price per foot

35.00/20 = 1.75 – the new price per foot

Enter the new value into your estimating program or spreadsheet