Expert Estimating Part 1 – Developing a Solid Estimating Process

By John Kenney, Cotney Consulting Group.

Every estimator should start the process by developing a thorough understanding of the project’s scope.

Estimators need to be able to visualize a project from start to finish, a skill that many build after having spent time in the field an on the job. Understanding the scope of a project, whether your scope or one provided by the owner’s consultant, is the first step to building a solid estimate, but that is only one component. You need to be sure that your estimating team is following strong processes and procedures.

Stage 1 – Pre-Estimate Stage

Reviewing Plans and Specifications:

In the initial review, you want to identify and note all items to be estimated. Pay special attention to the General Conditions and any Supplemental or Special Conditions of the specifications thoroughly. These sections contain information that may not be part of the actual construction, but they will include items that will be relevant in assembling your estimate.

Job Site Visit:

An estimator should always visit the project site to address any details that may not be evident from reviewing the plans.  Look for site access, staging areas, equipment needed, and always verify existing conditions. Take photos, measurements, and samples as required.

Stage 2 – Building Your Estimate

Build Your Estimate from the Ground Up:

The best approach to completing a quantity take-off is to follow the order of the actual construction, from the deck to finished cap flashing. This will provide you a clear mental snapshot of the project. If a project consists of multiple buildings, perform a separate quantity take-off for each building, for a more accurate project estimate.

Quantities, Keep Uniform and Consistent:

A quantity take-off is a continuous list of items and measurements. Keep your quantity as consistent and straightforward as possible. If estimating in spreadsheets, this is especially important. 

Getting the Scale Right:

Check the plans carefully for change in scale, and plans reduced from their original scale. Check for notes such as “NTS” (Not to Scale) or discrepancies between plans and specs. As you proceed through your take-off, it doesn’t hurt to do some mental arithmetic if a quantity or measurement seems off. Designers can make mistakes too. You should verify your plan scale and measurements with the detailed floor plan that has the dimensions on it. This is an excellent way to confirm that the roof plan scale is accurate.

Understand Your Products and Material Pricing:

Factors that can affect pricing to be considered.

• Availability and demand for a product.
• Delivery Challenges for materials.
• Is the product or material standard or custom order.
• Your project has lead times that fall outside the manufactures standard lead time guidelines.
• Your project has seasonal limitations that dictate logistics and adjustments to the price.

Sometimes there are products specified on projects you are not familiar with. Understanding how these products are installed will assist you with your preparation for labor unit costs.

Accurate Labor Units:

When you calculate how long it should take a worker or crew to complete a section or assembly of your project in hours, it is not advisable to calculate them on peak productivity rates.

In real-world construction, many factors impact the daily output of productivity, such as working long hours, which causes a decrease in productivity efficiency, as well as increasing costs of overtime rates.

Though you cannot account for abnormal weather events, weather can have a significant impact on your project and should be factored into your estimates. 

Other Costs to Include:

Subcontractor Quotes

A good practice is to get more than one subcontractor for each specific scope of work on a labor and material basis so that you can compare quotes equally to uncovering any missing items. Scrutinize your subcontractor quotes with the same evaluation steps you use for your estimates.

Determine Your Equipment Needs

Determine what equipment your project will need and whether you own them or be required to purchase or rent what is needed.  Always evaluate the most cost-effective solutions and include them in cost preparation.

Other Costs to Include

Include additional project costs such as:

Mobilization

• Jobsite storage containers, required utilities, Portalets
• On-site supervision (if not included in your overhead)
• Safety costs
• Dumpster
• Clean-up
• Other miscellaneous items, etc

Part II will cover what should be included, and how to correctly markup your estimate to capture all your costs and Part III, will cover how to calculate gross profit and develop a selling strategy.

Learn more about Cotney Consulting Group in their RCS Directory.

John Kenney has over 45 years' experience in the roofing industry. John started his career by working as a roofing apprentice at a family business in the Northeast to operating multiple Top 100 Roofing Contractors. As Chief Operating Officer, John is intimately familiar with all aspects of roofing production, estimating, and operations. During his tenure in the industry, John ran business units associated with delivering great workmanship and unparalleled customer service while ensuring strong net profits for his company before joining Cotney Consulting Group. If you would like any further information on this or another subject, you can contact John at jkenney@cotneyconsulting.com