Estimating & Instruction - Construction estimator services or learn how to do it your self
We can help you do a difficult estimate using the app - GoToMeeting, and the SiteEst Template!
A few of Mac's advice articles are listed below:
10 things to consider with Estimating Projects
By: D.B. "Mac" McKaig
We find ourselves with a Project to Bid. Though we have done this type of work before, there is always a new twist such as porous pavements, swirl separators, municipal codes, and clients who want to make a statement with their projects.
How do we begin?
1) Scope
What work are we bidding? Sit back and consider what would be the first step. In many cases your first stop should be Permits and Fees. Permits to perform the work need to be in hand for anything beyond the Golden Shovel Ceremony.
Permits are obtained through local agencies such as Village, Town, County, State, Environmental Agencies, and sometimes Water Authorities and Gas Companies.
With utilities, if you put anything in the ground, more than likely somebody wants to look in the hole before you cover it up. You should arrange inspections and find out what they charge if anything and is it included in a Permit Fee?
Do you have stamped Drawings or is this for budget purposes? If you use a set of drawings for the bid they become a record set and should not leave the office.
Then you might do your Mobilization, Erosion control, Strip Topsoil, etc. In your mind you build the Job step by step including every item on the job until you’re complete.
2) Labor
Who do you need for each item you’ve put together? Is there going to be one crew that does everything or will specialized crews come in and out of the Project?
Typically you will only need a couple people to mobilize but you might need a crew of Ten to Move the Cut to Fill.
Labor is a liability that needs to be carefully considered. Every minute that person is on the job you are liable for all that persons withholding and all the other expenses associated with people such as insurance, and even transportation to jobs and out of town expenses.
This is where the issue of what is Burden and what is overhead arises. How much “Shop Time” is absorbed by Overhead and how much by Burdening the specific project or Task?
Labor is what I refer to as a “Checkbook Item”. You as a Company will write a check for that amount other than you overhead and Profit. Miscalculate your labor and you won’t have to worry about Profit
3) Equipment
What type of Equipment do you need to accomplish the Task? There is a wide variety of specialized construction equipment that is designed for specific tasks such as Pavers, Rollers, Bulldozers, and Cranes. Does your company own this equipment or is it a rental.
If you own it you need to know what it cost to operate. Maintenance, Fuel, Replacement costs, and insurance should all be considered and an Hourly rate for that machine can be determined. Decide if the machine is to be charged against the job and item when idle or is that a company overhead cost.
Rental of specialty equipment is often much more efficient than owning a machine that sits more than works. There is a cost for every machine, from a cutoff saw to a Concrete Plant. It’s your job to make sure it finds its way into the bid.
4) Subcontractors
There is often a need to bring in specialty companies. Sometimes they own equipment specific to one task such as Pavements, Air Conditioning and Heating, or Granite Curbs or Landscaping.
These are costs that are also a liability for your company so you should use care in choosing a “Qualified Subcontractor” (Competent and Insured). Even though your subs are responsible for their own profit in loss on a job, it’s vital to the overall progress of a project they perform as promised. If a paving sub doesn’t show up on schedule and a passing storm destroys the prepared grade it’s going to cost you money. Once a sub is convinced he has an obligation but no profit left on your project because you are back charging him it will only get worse.
A nonperforming or underperforming sub can quickly destroy the cooperation and flow on a project, both of which will cost you money. Debating scope with that Sub in the middle of project is a sure way to promote discontent and unproductive behaviors from them. Make sure you have your own takeoff and at least two quotes. Think about what you will be doing before and after that Sub performs their work. Even small jobs and sometimes especially small jobs still require a schedule. That affects your bid. Know that. Deal with that. Put a price on it and move on.
5) Materials
This is the part of the job that requires an accurate takeoff.
Take-offs can be as easy as a length of sidewalk 4 feet wide and 100 feet long or as difficult as trying to compute strata information and Buttress fills in an Earthquake zone or how many pieces of #8 rebar in a Bridge Abutment. There is a number there. If you leave out 45000 SF of fabric at 12 cents a square foot it becomes easy to see the costs involved. You need to know the materials and cover them in your cost or assure someone else is responsible. Not having materials onsite because they were missed in the bid is a disaster on many different levels.
Do not use zero place holders for materials. In other words, if you need a price for stone or steel and it is pending, put the last, best price in the space. Most programs will do that and you simply update the data base to update the material throughout the bid. Don’t type or leave zero and move on.
Review and consider, is sales tax applicable? If it is, it will certainly be required on materials. How about delivery, scheduling required for delivery, is it available at the time you need it? Is there specialized equipment to place materials and do I have that in my bid?
Submittals and the lab work better be filed and don’t deliver a lot of materials unless you’re getting paid for it. Don’t have something that degrades to unusable because of weather or other delays.
These are all the Estimators responsibility, at least to the point of making sure the cost is in the bid, and the true cost considered.
6) Alternates
Alternates can be simply added to or deducted from the bid but it is not uncommon to see them used as “Chess Pieces” to affect the overall cost of a project. Sometimes they are included at no extra cost to lower the price with alternate’s and give the client more value even though they are not low on the base bid. That’s not usually the responsibility of the Estimator to make that decision but he will have to account for the costs.
7) Final Bid
This may not even be in the Estimators hands any more. Profit and Overhead may be put on here and may not even be available to the estimator. They better have everything else covered. Make sure all the paperwork is correct, the envelope is the correct size and the bid is ready to be submitted.
8) Exclusions
This is part of your “Scope of Work”. It is at least as important to list the work you are not doing sometimes as what you are performing.
You should review every part of the bid and point out items you do not consider yourself responsible for. If the owner claims you’re responsible for the staking and its 20 Thousand dollars, somebodies going to be running to check exclusions on the bid form.
9) Award and Execution
The way a Job starts is the way a job will proceed usually. Have your paper ready to defend back charges for delay in execution that drag work into the winter season. Make sure they will pay for materials onsite and that all the permits you listed at the beginning are in place.
10) Tracking for the future
Now is the time to insist you have accurate records of the actual hours and production on the item as it was executed and compare that to bid production expected. Little by little you will grow your confidence that you have a handle on the project. That simply organizing your bid into reasonable steps and following procedures that benefit your company and changing those that don’t will determine your success in Estimating.
How do we begin?
1) Scope
What work are we bidding? Sit back and consider what would be the first step. In many cases your first stop should be Permits and Fees. Permits to perform the work need to be in hand for anything beyond the Golden Shovel Ceremony.
Permits are obtained through local agencies such as Village, Town, County, State, Environmental Agencies, and sometimes Water Authorities and Gas Companies.
With utilities, if you put anything in the ground, more than likely somebody wants to look in the hole before you cover it up. You should arrange inspections and find out what they charge if anything and is it included in a Permit Fee?
Do you have stamped Drawings or is this for budget purposes? If you use a set of drawings for the bid they become a record set and should not leave the office.
Then you might do your Mobilization, Erosion control, Strip Topsoil, etc. In your mind you build the Job step by step including every item on the job until you’re complete.
2) Labor
Who do you need for each item you’ve put together? Is there going to be one crew that does everything or will specialized crews come in and out of the Project?
Typically you will only need a couple people to mobilize but you might need a crew of Ten to Move the Cut to Fill.
Labor is a liability that needs to be carefully considered. Every minute that person is on the job you are liable for all that persons withholding and all the other expenses associated with people such as insurance, and even transportation to jobs and out of town expenses.
This is where the issue of what is Burden and what is overhead arises. How much “Shop Time” is absorbed by Overhead and how much by Burdening the specific project or Task?
Labor is what I refer to as a “Checkbook Item”. You as a Company will write a check for that amount other than you overhead and Profit. Miscalculate your labor and you won’t have to worry about Profit
3) Equipment
What type of Equipment do you need to accomplish the Task? There is a wide variety of specialized construction equipment that is designed for specific tasks such as Pavers, Rollers, Bulldozers, and Cranes. Does your company own this equipment or is it a rental.
If you own it you need to know what it cost to operate. Maintenance, Fuel, Replacement costs, and insurance should all be considered and an Hourly rate for that machine can be determined. Decide if the machine is to be charged against the job and item when idle or is that a company overhead cost.
Rental of specialty equipment is often much more efficient than owning a machine that sits more than works. There is a cost for every machine, from a cutoff saw to a Concrete Plant. It’s your job to make sure it finds its way into the bid.
4) Subcontractors
There is often a need to bring in specialty companies. Sometimes they own equipment specific to one task such as Pavements, Air Conditioning and Heating, or Granite Curbs or Landscaping.
These are costs that are also a liability for your company so you should use care in choosing a “Qualified Subcontractor” (Competent and Insured). Even though your subs are responsible for their own profit in loss on a job, it’s vital to the overall progress of a project they perform as promised. If a paving sub doesn’t show up on schedule and a passing storm destroys the prepared grade it’s going to cost you money. Once a sub is convinced he has an obligation but no profit left on your project because you are back charging him it will only get worse.
A nonperforming or underperforming sub can quickly destroy the cooperation and flow on a project, both of which will cost you money. Debating scope with that Sub in the middle of project is a sure way to promote discontent and unproductive behaviors from them. Make sure you have your own takeoff and at least two quotes. Think about what you will be doing before and after that Sub performs their work. Even small jobs and sometimes especially small jobs still require a schedule. That affects your bid. Know that. Deal with that. Put a price on it and move on.
5) Materials
This is the part of the job that requires an accurate takeoff.
Take-offs can be as easy as a length of sidewalk 4 feet wide and 100 feet long or as difficult as trying to compute strata information and Buttress fills in an Earthquake zone or how many pieces of #8 rebar in a Bridge Abutment. There is a number there. If you leave out 45000 SF of fabric at 12 cents a square foot it becomes easy to see the costs involved. You need to know the materials and cover them in your cost or assure someone else is responsible. Not having materials onsite because they were missed in the bid is a disaster on many different levels.
Do not use zero place holders for materials. In other words, if you need a price for stone or steel and it is pending, put the last, best price in the space. Most programs will do that and you simply update the data base to update the material throughout the bid. Don’t type or leave zero and move on.
Review and consider, is sales tax applicable? If it is, it will certainly be required on materials. How about delivery, scheduling required for delivery, is it available at the time you need it? Is there specialized equipment to place materials and do I have that in my bid?
Submittals and the lab work better be filed and don’t deliver a lot of materials unless you’re getting paid for it. Don’t have something that degrades to unusable because of weather or other delays.
These are all the Estimators responsibility, at least to the point of making sure the cost is in the bid, and the true cost considered.
6) Alternates
Alternates can be simply added to or deducted from the bid but it is not uncommon to see them used as “Chess Pieces” to affect the overall cost of a project. Sometimes they are included at no extra cost to lower the price with alternate’s and give the client more value even though they are not low on the base bid. That’s not usually the responsibility of the Estimator to make that decision but he will have to account for the costs.
7) Final Bid
This may not even be in the Estimators hands any more. Profit and Overhead may be put on here and may not even be available to the estimator. They better have everything else covered. Make sure all the paperwork is correct, the envelope is the correct size and the bid is ready to be submitted.
8) Exclusions
This is part of your “Scope of Work”. It is at least as important to list the work you are not doing sometimes as what you are performing.
You should review every part of the bid and point out items you do not consider yourself responsible for. If the owner claims you’re responsible for the staking and its 20 Thousand dollars, somebodies going to be running to check exclusions on the bid form.
9) Award and Execution
The way a Job starts is the way a job will proceed usually. Have your paper ready to defend back charges for delay in execution that drag work into the winter season. Make sure they will pay for materials onsite and that all the permits you listed at the beginning are in place.
10) Tracking for the future
Now is the time to insist you have accurate records of the actual hours and production on the item as it was executed and compare that to bid production expected. Little by little you will grow your confidence that you have a handle on the project. That simply organizing your bid into reasonable steps and following procedures that benefit your company and changing those that don’t will determine your success in Estimating.
Five Common Mistakes in EarthWorks Estimating
By: D.B "Mac" McKaig
When I was asked how to avoid mistakes in estimating and take-off, I asked myself what defines a mistake?
Mistakes to me are items such as Scale, Elevation, Drawing, Omission, and Scope of Work errors.
All of these can be avoided by turning your estimating and take-off's into a structured and organized process. If you are doing Estimates at 2 AM, on software you don't understand, for a site you have no knowledge of; you will make a "Mistake" eventually.
How do we avoid these common mistakes by organization?
SCALE:
Back when Draftsmen used an actual Scale to make the Print these types of errors were not as common. Since the widespread use of CAD and PDF's we have been subjected to the introduction of error on many levels. At creation of the Drawing it can be an inattentive or inexperienced Engineer. When replication of the Drawing is by an equally inattentive or inexperienced office clerk or Estimator the improper use of Scale has become the most common mistake I have seen.
Avoiding Scale errors requires 3 things, Verification, Verification and Verification.
As mentioned before this error can be made at any level. From the creation of the file to the printing or onscreen take-off, the simple failure to verify scale is a major error.
Sometimes it's a more insidious error such as an old plotter that reproduces correctly on one axis and incorrectly on the other or an incorrect scale displayed on the page! The only way to confirm is to verify and verify to confirm.
Before moving on it is important to mention improper use of scale. In other words can you be accurate at 1"=100? If you are using a digitizer to measure, the average accuracy is about 1/20th of an inch. That's 5 FEET on a 100 scale drawing. Can the drawing be blown up to 1"=50 or even 1"=30 and still fit on your digitizer? If so then do yourself a favor, make a record set that is enlarged and confirmed and then use it.
ELEVATION:
Typically a Large numerical error will show up in even a casual check of a computer take-off. The most common elevation mistake in surveying is 1 foot. An isolated error of 1 foot is insignificant on a major take-off. A 1 foot error over a large area can be devastating, causing the import or export of large amounts of material. The best way to confirm the existing topo and the quality of the layout is to use your EW cut/fill image and check the first stakes out in the field. Ask the Engineer to give you a Building corners or Catch Basins with the elevation and cut fill to Finish grade. Take a picture of this and all other stakes before stripping the topsoil! By comparing this with the EW take-off you will at least have a leg to stand on when requesting a change order. Resolve this mistake before proceeding or be willing to live with it.
DRAWING:
I have already touched on Scale and Numerical Errors on Drawings. Lets look at the error's such as the Building that isn't shown, the plan's that call out Plastic pipe when the spec's require Concrete pipe, or the use of an outdated topo drawing when the site has undergone significant changes.
A complete review of the specs may save your Company. Boring logs if not included should be requested. If you use the wrong material on a job and get it in the ground you may be subject to reduced payment at the least and removal and replacement with Spec. materials at the worst!
Site visit's will reduce your liability and also give you in-site into traffic patterns at the site and weight restrictions on roads nearby. Google Earth or Microsoft Virtual Earth are great if the pictures are up to date but are you willing to bet the farm on them?
OMISSION:
Nothing gives you that sick feeling in your stomach like realizing you forgot something in a bid. Maybe it was something like the office trailer but it could be Compaction of fills or another major Item!
Using a pre-formatted template or at least a checklist of major items helps reduce this error. Try to build the job in your head and remember, Men and Equipment cost money. The next time you forget to allow for a Tie-in to existing utilities or the hardware to lower a water line around a Sewer line remember, Penny's make Dollars and Minutes make Hours.
SCOPE OF WORK: Understanding your responsibilities on a job is vital to the successful execution of the project. Improper assignment of responsibility for tasks can lead to in-efficiency in execution, (ever wait for the power company to move a pole?)
Check and confirm with other contractors you are bidding in conjunction with. EXCLUSIONS or what you are not responsible for are at least as important as what you are doing!
There are five mistakes that I've seen all too often. I have no funny stories to tell about them because mistakes
are rarely funny.
How do we avoid these common mistakes by organization?
SCALE:
Back when Draftsmen used an actual Scale to make the Print these types of errors were not as common. Since the widespread use of CAD and PDF's we have been subjected to the introduction of error on many levels. At creation of the Drawing it can be an inattentive or inexperienced Engineer. When replication of the Drawing is by an equally inattentive or inexperienced office clerk or Estimator the improper use of Scale has become the most common mistake I have seen.
Avoiding Scale errors requires 3 things, Verification, Verification and Verification.
As mentioned before this error can be made at any level. From the creation of the file to the printing or onscreen take-off, the simple failure to verify scale is a major error.
Sometimes it's a more insidious error such as an old plotter that reproduces correctly on one axis and incorrectly on the other or an incorrect scale displayed on the page! The only way to confirm is to verify and verify to confirm.
Before moving on it is important to mention improper use of scale. In other words can you be accurate at 1"=100? If you are using a digitizer to measure, the average accuracy is about 1/20th of an inch. That's 5 FEET on a 100 scale drawing. Can the drawing be blown up to 1"=50 or even 1"=30 and still fit on your digitizer? If so then do yourself a favor, make a record set that is enlarged and confirmed and then use it.
ELEVATION:
Typically a Large numerical error will show up in even a casual check of a computer take-off. The most common elevation mistake in surveying is 1 foot. An isolated error of 1 foot is insignificant on a major take-off. A 1 foot error over a large area can be devastating, causing the import or export of large amounts of material. The best way to confirm the existing topo and the quality of the layout is to use your EW cut/fill image and check the first stakes out in the field. Ask the Engineer to give you a Building corners or Catch Basins with the elevation and cut fill to Finish grade. Take a picture of this and all other stakes before stripping the topsoil! By comparing this with the EW take-off you will at least have a leg to stand on when requesting a change order. Resolve this mistake before proceeding or be willing to live with it.
DRAWING:
I have already touched on Scale and Numerical Errors on Drawings. Lets look at the error's such as the Building that isn't shown, the plan's that call out Plastic pipe when the spec's require Concrete pipe, or the use of an outdated topo drawing when the site has undergone significant changes.
A complete review of the specs may save your Company. Boring logs if not included should be requested. If you use the wrong material on a job and get it in the ground you may be subject to reduced payment at the least and removal and replacement with Spec. materials at the worst!
Site visit's will reduce your liability and also give you in-site into traffic patterns at the site and weight restrictions on roads nearby. Google Earth or Microsoft Virtual Earth are great if the pictures are up to date but are you willing to bet the farm on them?
OMISSION:
Nothing gives you that sick feeling in your stomach like realizing you forgot something in a bid. Maybe it was something like the office trailer but it could be Compaction of fills or another major Item!
Using a pre-formatted template or at least a checklist of major items helps reduce this error. Try to build the job in your head and remember, Men and Equipment cost money. The next time you forget to allow for a Tie-in to existing utilities or the hardware to lower a water line around a Sewer line remember, Penny's make Dollars and Minutes make Hours.
SCOPE OF WORK: Understanding your responsibilities on a job is vital to the successful execution of the project. Improper assignment of responsibility for tasks can lead to in-efficiency in execution, (ever wait for the power company to move a pole?)
Check and confirm with other contractors you are bidding in conjunction with. EXCLUSIONS or what you are not responsible for are at least as important as what you are doing!
There are five mistakes that I've seen all too often. I have no funny stories to tell about them because mistakes
are rarely funny.