Nobody said that it was easy to work in the construction business. Because it’s a difficult profession, you want to make sure that you’re getting paid appropriately.
However, when it comes to giving a construction quote to a prospective client, you might get stressed out. If you give a quote that is too high then the client will likely walk away. If you give a quote that is too low, then you’ll probably be wishing that you never bid on the project in the first place.
Mastering the art of an accurate construction quote isn’t necessarily easy. But it is possible. And we’ve got the advice that you need to be able to do it time and again.
Would you like to learn more? If you would, then keep on reading and we will take you through everything that you will want to know!
Make Sure You Are Accurate and Detailed in the Take-Off Process
You won’t be able to give an estimate for what you don’t know. If you start off with inaccuracies, you’ll end up very far off from what you should have quoted.
We can compare it to hitting a golf ball. You might hit a golf ball a fraction of an inch away from the sweet spot. While that is a small distance, the ball might land dozens of yards from where it would have gone if you hit it right at the start.
Think about the different parts of the job, all of the materials that are needed, the amount of time each phase will take, and every subcontractor who will perform the labor. You will also need to think about anything else that is going to be needed to finish the project.
After you do that, you can break the job down and think about the cost of each individual item.
Watch Out for Unit Cost Estimating Guides
While unit cost estimating can be a quick way to estimate how much something will cost, it’s not necessarily going to be accurate. Estimating based on the order of magnitude per square foot or unit cost can be a bad move. This is because there are so many variables that are unique to your project.
You should use these guides just to give you a ballpark estimate.
Make a Master Checklist
You’ll need to utilize plan organization so that you can ensure that the job will stay on track and get finished on time. It is easy to forget something like hardscaping, landscaping, or a permit.
Have a master checklist and use it to make sure that you don’t forget any needed items or steps. Also, think about using professional bidding software. And make sure to learn more info about it.
Figure Out an Accurate Hourly Rate for Specialty Labor
Craftsmen, or specialty labor, must include normal benefits and rates. However, you must also factor in state and federal payroll costs.
Make sure that you take all of this into account when you are coming up with an hourly rate. After you have established the rate, build out the other members of the specialty crew and come up with a crew rate.
Think about how many workers you need to bring onto the project. At the hourly rate, you can figure out what it will cost for these employees.
Define the Project Risks and Factor In Their Costs
When you begin the quoting process, you’ll need to think about what could possibly go awry during the job. Think about possible mistakes and factor them into the timeline and cost of the job.
Obviously, it is not easy to predict what will happen in the future. But you can look at previous jobs and try to figure out what risks are likely to be present on the next jobs.
Read Also: What Do Building Inspectors Actually Do?
Start by looking at your past jobs and what unknowns at quote time became margin killers during the job. Use this new knowledge that you have to guide you when you are quoting for future jobs.
Understand Products, Materials Pricing, and Fluctuations
The prices of materials change frequently. So it is important that you pay close attention to things that could affect pricing when you are coming up with costs.
Is there a higher demand for a certain product or material? Is there a shortage of a product?
Do you have delivery challenges or do you need the material faster than normal? Are there seasonal limitations that you need to take into consideration?
It’s also important that you know about material availability and any possible scheduling problems that will have cost implications if you don’t order the materials on time.
Also, are there any items on the project that you are not familiar with? Make sure that you understand what labor and products are needed to install the items so that you can quote effectively.
The Importance of Knowing How to Give a More Accurate Construction Quote
Hopefully, after reading the above article, you now have a better idea of how to give a more accurate construction quote. As we can see, you need to make sure that you understand your project inside and out so that you can give an accurate and proper construction quote to your clients.
Are you looking for other helpful and interesting articles like this one? If you are, then you should make sure to check out the rest of our site for even more!
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