Construction Estimating – How to Make Money Consistently Job After Job
Construction estimating is the bane and boon of every contractor. You have to estimate to get jobs, and you’re always wondering if you got it right. Accurate construction estimating is essential to making money consistently. If your estimates aren’t accurate there’s no way you can make money consistently.
You’ll make money occasionally just by sure blind luck. But, that’s no way to run a construction business if you want to stay in business for the long term.
Accuracy Begins with Careful Takeoffs and Ends with Thorough Job Cost
If you don’t have accurate, measurable, takeoffs, you’ve started with bad information and you can’t estimate or bid your jobs accurately. It doesn’t make any difference how detailed you figure your man hours and labor cost or how accurate your cost of materials is your estimate won’t be accurate. You’ve got to have accurate take offs to begin with. It’s one of the most important steps in the construction estimating process.
Job cost is a critical ingredient in the construction estimating process. When the job is complete, and sometimes even before it’s complete, you should review your actual construction costs to the budget for the project. When you find differences between your budget and your actual costs you need to adjust your estimating to reflect reality. Job cost is used to adjust your estimating so you are more accurate on the next estimate.
The challenge for most small and medium sized contractors, like you, is bidding consistently job after job. Frequently, you’re overwhelmed with the amount of work you have to do, whether it’s job related or not.
There’s just not enough time to get everything done. One of the things that suffers because of it, is your estimates.