Got Accurate Estimates?
The estimate isn’t just a quote for your customer; it serves as a plan-of-action for you and your crew. You’re going to use the notes on the estimate to complete the job. Building the estimate is the first stage of the Estimate-Bid-Job sequence. Accuracy from start to finish is the key to making money. There are tell-tale signs at every stage of the sequence that help you confirm that you’ve got accurate estimates.
Here we’re breaking the sequence into four stages – the Estimating Phase, the Bidding Phase, the Job Phase, and the Post-Job Phase. The Estimating Phase is where the estimate is constructed. In the Bidding Phase you present the estimate to your client. Once your bid is accepted, we move into the Job Phase, where the proposed work is done. The final phase occurs after work is completed.
Are your bids in the ballpark?
Look for these signs to verify that you’ve got accurate estimates.
Estimating Phase
The estimate serves as a reminder of what needs to be done on a job. For example, think about everything involved in set up: moving furniture, putting down drop cloths, masking, etc. Breaking tasks like set up, repairs, and painting into pieces forces you to think about how much time it will actually take to complete the task and what tools and materials are needed.
# 1. The estimated hours are way off
Did I allow enough time to do everything I’m estimating?
This is an educated guess based on the time you expect it will take to do each piece of each task on this specific job.
# 2. The required materials are off
# 3. Lack of detials
Did I include time, tools, and materials to repair cracks in the drywall and paint 10 windows on this job?
Every detail impacts the time it takes to complete tasks (ie. labor), the tools required, and materials you will need. So if details aren’t on the estimate, the estimate is probably wrong.
Bidding Phase
# 4. The customer says to you, “You’re bid came in lowest by far!”
If you hear this, chances are there’s a problem. You might have overlooked details that other contractors included. Or you may not have quoted enough hours to get the job done. Either way, if your bid comes in way below your competition, it’s a sign that your estimate is wrong.
Job Phase
Remember: the estimate is a reminder of what needs to be done on the job. As you and your crew are doing the job, it’s important to go back to your estimate and verify that it matches reality.
# 5. Actual labor is way different than estimated
The crew is still painting windows – WHY?! They should have finished that task 2 hours ago!
Often, our perception of how long a task should take is different from how long it actually takes. Compare your estimate to reality. If you discover that your crew is still working on tasks that you expected them to be finished with, you have a problem with your estimate. You may not have allotted enough time to get all the materials up 3 flights of stairs and through a narrow doorway into the work space. Likewise, if the crew is finished much faster than you expected, something’s up.
# 6. Your crew doesn’t have the right tools on hand
If you get to the job and discover you’re missing tools (ie. a manlift, sanders, spray guns, enough drop cloths), there was a problem with your estimate.
# 7. You run out of materials
It will cost you time and money if your crew has to stop working and wait for more materials.
Post-Job Phase
# 8. You have a LOT of leftover material
It’s not such a big deal to have half a gallon of paint left over, or even a couple gallons. But something’s wrong if you have 10 gallons left over.
Estimating is a process that needs to be continuously evaluated and tweaked. Use an estimating tool like PEP Cloud to take the guess work out of estimating.