Estimating – PRICING Materials, Equipment, & Labor Workshop Presented by: Rex Davis & Associates, LLC

REVIEW !! Keep your Bid due date foremost in the back of your mind. Start your Estimate Notebook Break the job into manageable parts (phases) as if your were building or delivering the project.

REVIEW !! Three types of take-off; Handwritten, spreadsheets, or database software packages. Have a well defined scope of work and this should mirror your company goals. Know the “units” you will be using for your take-off.

REVIEW !! Use RFI’s and RFP’s to collect all the information you need. Always get this information in a permanent type of record (paper, email, or fax). Take-off done exactly as your would build or deliver.

REVIEW !! Remember be sure you have all information available before starting your estimate Remember you may have to search for all the information you need in the drawings, specifications, and addenda. Number each line of your estimate.

REVIEW !! Mark your drawings as you work on your take-off. Make your take-off as accurate as possible, NO Guesstimates. Major areas of quantity take-off: Materials, Labor, & Equipment.

REVIEW !! Information needed on your take-off: Quantity Description Size Specifications Extra needed for waste Where are you adding markup?

REVIEW !! Labor & Equipment cost as individual items/ men or do you develop crews. Don’t forget your other added costs on labor and equipment.

PRICING MATERIALS Know what materials you need before you ask for pricing. Was this material priced recently? What affects the price of your materials? Material pricing history.

KNOW YOUR MATERIALS Be sure you have the right materials on your take-off. Check your unit of measure on your take-off, does this match your units used in your pricing? Where are you getting your prices from?

When Was Your Material Priced Last? Is this a material one you have used before? Where did your original pricing come from? How recent is this pricing? Is this the same material, according to specs?

MATERIAL MARKET Is this a common material for you to purchase? What is the market for this material? Are there major fluctuations, volatility? Are there seasonal considerations when purchasing materials?

Where can you find pricing for materials? Local Vendors Regional Vendors or Distributors Manufacturers On-line (Internet) Sometimes? Architect

Where can you find pricing for materials? Always get a minimum of three (3) price quotes. Comparative shop even if you have your preferred vendors. This will keep your preferred on their toes and get you better pricing.

OTHER ISSUES Delivery Costs Taxes (not all materials are tax exempt) Is your supplier price fixing per job? How can you work to get better material pricing?

PRICING LABOR How is your labor pricing established? History Union Contact Federal Mandates (Davis-Bacon) Local Labor Market Your Actual Labor Rates

PRICING LABOR What benefits do you have to pay? Health Insurance Vacation Pension Workers Compensation Head Taxes

PRICING LABOR Know your cost for all your employees. How does your labor costs tie into your materials and equipment? Review these labor rates and costs on a regular basis. Are you using crews instead of hourly?

PRICING LABOR (Other issues) Do you have to pay other costs to your employees? Stipend Travel expenses Room & Board How can you work these into your estimate?

PRICING LABOR (Project schedule) It is critical you have a preliminary project schedule. Your schedule determines your quantity of labor and what types of labor you use. At some point early in your estimate you need to meet with the probable PM and Superintendent to establish a project schedule. (During project breakout?)

PRICING EQUIPMENT How is your equipment pricing established? History Equipment Manufacturer Your actual costs Pricing Guides

PRICING EQUIPMENT What other costs do you need to add to your equipment costs? Fuel Lubrication Maintenance Transportation DO NOT Forget MOBILIZATION!!

PRICING EQUIPMENT Know your cost for all your equipment. How does your equipment costs tie into your materials and labor? Are you using crews? Review these equipment rates and costs on a regular basis.

PRICING EQUIPMENT As your equipment gets older, take into consideration cost of upkeep on old machinery vs. purchase of new machinery. There will come a point where you will need to dispose of older equipment and replace it.

Pricing Materials, Labor & Equipment (examples) Materials (Example) Material Qty. Cost/UOM UOM Ship Surchrge Local Tax (2.3%) Total $ Totl$/UOM Drywall 3200 $0.53 SF $1,200.00 $25.00 $67.18 $2,921.00 $0.94   Labor Health Vacation 401K Journeyman 45 Hr $0.91 $0.65 $1.25 $1,251.66 $27.82 Laborer 35 $13.00 $532.51 $15.22 Equipment Fuel ($/#gal/hr) Lube Maintenance Backhoe 24 $55.00 $13.15 $23.75 $50.00 $3,405.60 $141.90

Next Session Profit, Markup, & Margins How can you and do you charge? Next session 11:00 AM. If there are any specific questions you want answered write them down.