JOB MANAGEMENT - ESTIMATING PROCEDURES (Part 2)
The following is a step-by-step
procedure for processing a job-cost estimate that has proven its
worth on countless jobs over several years.
- 1. Job registration (name,
address, phone, etc.)
- 2. Study plans and review
a. Site Plans
- 3. Determine approach to take-off.
- 4. Count, measure and list
- 5. Write up.
- 6. Recheck.
- 7. Price, extend and subtotal.
- 8. Transfer subtotals to bid
- 9. Apply overhead and profit.
- 10. Make necessary
- 11. Total bid summary, and
have it checked.
- 12. Reasons for errors:
a. Hurry - too little time allowed.
b. Improper estimating forms.
c. Failure to read specifications and plans.
d. Inaccurate or incomplete determination of jobsite
- 13. Results of error:
a. Forget major time.
b. Omit section of job.
c. Forget to include special equipment.
d. Forget to include quotes.
e. Forget labor, job expense, and overhead.
f. Forget typical floor.
g. Assume all floors to be the same.
h. Assume standard grade devices are acceptable.
i. Failure to include outside or underground work
equipment or connection.
j. Forget addenda.
k. Forget changes to original specifications, plans.
l. Incorrect extensions.
m. Errors in multiplication or addition.
n. Using wholesale take-offs.
- 14. You should:
a. Read every word of specifications.
b. Study and check all plans.
c. Clear up any doubts.
d. Dont estimate when you are rushed or tired.
e. Refuse to enter bid not properly prepared.
f. Check all quantities, price and extensions.
g. Estimate in an orderly sequence.
h. Use proper forms.
NOTE: This is the
second of two newsletters on Estimating Procedures. For other
closely related topics, be sure to review the sections on Job-Costing
(#51 & 52), and Estimating (#65 & 66) in this series of
articles on Financial and Job Management.
Mike Holts Comment:
This newsletter was extracted from my Business Management and
Management Skills Workbook. Watch for our next newsletter,
and as always, we encourage your comments and feedback. Send us
your real-life experiences. Please respond to Barbara@mikeholt.com.
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