Too many contractors are losing their butts and their businesses because they don't prepare their construction estimates in a way that almost guarantees they will make money on each of their jobs! As an example, in evaluating the costs for creating a 10-foot section of wall, contractors may estimate the job will require a day's labor and $150 of materials.



The very same contractor can look at another job for a 15 foot wall a few weeks later and put it down on paper that it will take approx. $150 for materials and also an hours worth of time to complete.

What doesn't line up? Is he incorrect or correct on a length of wall 10 feet? Did he successfully work out the fifteen-footer? Will he ever know? As a matter of fact, when he discovers that he is broke, he most likely will (or fewer) packed into his wallet when the day's done. Not winning the contract could be due to his price estimate being higher than bids from competitors.

After years of speaking with many contractors it was realized that estimates should be prepared based on accurate measurable units which allow one to consistently make money on a job. This is an explanation of how it works.

A preliminary: this approach is good for any sort of contracting work. I don't care if you're a general contractor, home builder, remodeling contractor, any specialty you can name, the principles are the same.

If you remove a wall, costs should include a price based on a linear foot or per square foot of wall space. In calculating the costs for building a wall, consider that each linear foot will require one hour of labor and $12 worth of materials.50 per linear foot.

By that figure, ten feet of wall will add up to ten hours' work and one hundred twenty-five dollars worth of parts.double zero. This is what's so great about it. When the jobs done A weekly assessment is necessary for larger, more complex jobs. Based on past experience, you can see how much it will cost and also know how long it took. Let's say it only took 8 hours Each linear foot can be estimated at 8/10ths of an hour., but it ran a full $150 ($5 for each yard of the wall's length) for the things needed. We've gained knowledge that we can use on our next efforts.

In this examinaton by the way, let's espouse that this was a typical day at the work site with nothing weird occuring.

For job time estimates, this formulas is used for bidding the 15 foot wall. (15 feet times 8/10ths of an hour) It cost $225 for the wall of 15 feet. (45 dollars a yard times five yards - or fifteen for each foot, multiplied by fifteen) for the things needed. The actual costs will be far closer to this estimate than to our first estimate.

Upon learning, you adjust estimates to ensure you don't make the same mistake again. In order to keep costs at a minimum, there is a step progression that should be followed.

Considering the situation, it is somewhat like manuvering a car or truck. You don't just get in, point it in a direction, lock the steering wheel, and drive. As you go along, you refine your direction, getting it closer and closer to perfect. If you won't do this, you'll end up running into something and hurting yourself. The same thing is true in estimating. You've got to make adjustments or you'll run into a wall... and this may cause some pain!