The estimating process can make or break our business so be sure to start with sound practices.
- There are many ways to estimate and the right one is the one that works for you
- Estimating ranges from Wild Ass Guesses to counting screws
- Companies use unit pricing, crew based estimates, and other ways
- All come down to determining the cost of work plus overhead and profit
- We want to establish systems to generate good estimates – what is a good estimate
- One that wins the job
- Identifies the costs with reasonable certainty
- Doesn’t take too long to complete
- Follows a repeatable system
- Setting up a good system takes
- Historical data and good job costing for comparison
- A method for determining costs that works for your company
- An outlined process on how to handle the estimating
- Take-offs – how detailed, what to take-off, etc.
- Sub-bids and vendor quotes
- Contract review and overhead
- A review process once complete