Takeoff is vital for creating accurate estimates and bids — after all, it’s the step where you measure, count, and list quantities of materials based
Choosing RFPsChoose bids based on work site location, ease of access, and the project conditions as presented in the request for proposals (RFP). Skip submitting a proposal if the job requires an excessive commute, access issues, or includes a majority of work days in extreme cold or heat conditions, materials difficult to work with or obtain, or includes hazardous situations. Although it’s important to snag the job, don’t compromise your safety and sanity!
It’s in the DetailsYou have two options for developing a bid: stick estimating and unit cost estimating. While the unit cost method turns out a quicker bid, stick estimating provides a more comprehensive bid. Before going through the detailed steps of a bid, keep in mind the following tips.
- Either way, the bid requires an itemized list of materials required with a markup of 10 to 15 percent to cover waste and overhead.
- Compare the proposed project with prior work you’ve completed as a contractor. You can pull references and information from prior proposals.
- Pull the estimated number of hours required for the job from prior similar work. Multiply your hourly rate by the job hours for the labor estimate. Add employee hours and their rate. Don’t forget your overhead here, too, to cover insurance, licenses, shop costs, and transportation.
- Include the real money item – a proposed work schedule. Include a cushion for things like weather and delayed materials or equipment.
Parties to a Construction BidThe construction bidding process goes beyond the potential client and you. If your construction firm is large enough, the process also includes your estimator and salesperson. Smaller firms may have only one position that conducts both estimates and sales. Larger projects require information from sub-contractors.
Bid PlanningYou get a more accurate job cost using the stick method. It requires separate labor and material lists but provides better, more detailed information.
- List the job steps or construction stages.
- Note the hours each step or stage requires.
- Compile a materials list for each stage.
- List each subcontractor required.
- Compile a registry of equipment and necessities for job completion. Include everything from permits to port-a-potties.
- Calculate out costs of each item across the lists.
- Apply your overhead/markup.
- Listing all line items required for the construction project.
- Assigning the unit cost to each of the line items.
- Totaling the line items.
- Applying your markup/overhead.