Do you know what submitting an inaccurate estimate can lead to? Well, it can lead to you losing the assignment, monetary losses, and even lead to poor customer relations. So, what’s the possible solution for this? Well, all you need to do is use invoice and estimate software and make the correct estimates. These 6 tips will help you nail your construction estimates.
-
Create Construction Estimate Templates
One of the best ways to make sure you get your estimates right is to make use of construction estimate templates. They will help you include all items and understand the scope of your work in a better manner.
You can easily analyze the cost of material and labor. Besides, you can also include bond costs, administrative costs, and increased insurance limits.
Once you have prepared the template, you can add or remove items as per different projects. This lets you stay flexible and yet also take into account the small items you might miss otherwise.
-
Analyze Past Projects
Whenever you are making proposals, make sure you review your past project and use them to gather insights. Another thing you can do is generate reports via invoice and estimate software and compare your numbers. The idea is to get an accurate breakdown of services and then decide on costs.
If you are not doing it currently, it is time you start doing it. But, why? Well, the first is to achieve accuracy, and the second is to get better projects. Besides, it wi help you evaluate your estimation process and calculations.
-
Check Labor Costs Staff Productivity
Having your own labor is ideal for projects. But, for an accurate estimate, you will need to gauge how productive is your staff.
Most online invoice payment software can be integrated with time tracking modules, and you can use it to check which employee does the best work and in the least amount of tie.
Then, take into account all the expenses, add your mark-up, calculate overhead percentages, calculate a fair billing rate, and then add it in your construction estimate template.
Also, consider factors like lost tools, skillsets, training, and personal issues to see how many person-hours they took. Invoice and estimate software will help you get the correct numbers and determine how long a project will take.
-
Compare Proposals
Subcontractors usually take up a part of a project and not a full project. Therefore, you will need to dive deep into the proposal and see what’s included and what’s not. Subcontractors can miss out on parts of work or exclude parts that they will not do. Thus, you can ask them to resubmit their proposals and then compare them to see what are the best prices you can get.
Please remember not all subcontractors will provide you with a cost breakdown. Instead, they will try to avoid the process and build a false picture. The solution here is to call them and verify if they have all the things they need, the work they will do, and if there is any help you need. Also, if they have missed out on anything, you can give them to resubmit their proposal. However, make sure you have time to sort this out. Else, it can lead to issues with your clients and bring you bad fame.
-
Check your math and formulas
The worst thing that can happen is that you calculate your bids and find out a section is missing from the total. Thus, it is important you check the math for each line item. It is very easy for cells to get removed/added and even possible that there is a separate formulata at the bottom.
If you are calculating labor costs, make sure the formula is correct. Also, check if the correct subtotals are being pulled. Besides, ensure that the correct sales tax rate has been applied. All these errors are minor but can add upto become a huge hassle if not addressed on time. Luckily, online payment software is the solution to get your numbers accurate the first time.
Wrapping Up
Bid accuracy can help you scale easily, get access to the best prospects and make more profits. Invest in the right online payment software to get your numbers right, stay miles ahead of your competitors and grow your business with ease.
