Estimating before you know.
WHAT AN ESTIMATE MUST COVER
Materials Labour Plant and equipment Subcontractors Site costs Overheads Profit Contingency
WHAT MOST ESTIMATES OMIT
Site establishment and security Waste and breakage Transport of materials Supervision time Rectification of defects The contractor's own time
WHY THOSE MATTER
They are real and they consume the margin.
HOW TO BUILD AN ESTIMATE
From quantities, item by item.
WHAT TAKING OFF QUANTITIES MEANS
Measuring from the drawings what is actually required.
WHY FROM DRAWINGS
Estimating by impression is how contractors lose money.
WHAT TO APPLY TO QUANTITIES
Current material prices Labour required per unit Wastage allowance
WHY WASTAGE ALLOWANCE
Materials are cut, broken, stolen and over-ordered.
WHAT TO ESTABLISH
Your own labour rates per unit of work.
HOW
From records of previous jobs.
WHY YOUR OWN
Published rates do not reflect your crew.
WHAT CONTINGENCY IS FOR
What you cannot foresee.
HOW MUCH
More on renovation, less on repeat work you know.
WHAT TO STATE IN THE QUOTATION
What is included What is excluded What is provisional What assumptions you relied on Validity period
WHY ASSUMPTIONS
If they prove wrong, the price changes, and the document must say so.
WHAT TO NEVER DO
Price to win, intending to recover through variations.
