How to Calculate Construction Bids
Most construction bids consist of three main categories: the materials cost, the labor cost and the profit. Take the time to closely inspect the project and listen closely to the customers' expectations from the very beginning to give them a job bid that they will not only sign onto, but be excited about. The contractor that meets and exceeds customer expectations every time will soon find that he can bid any fair price he wants to charge for his work and people will gladly pay it for competent service. Does this Spark an idea?
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Instructions
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Outlining the Project
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Inspect the job site or plans with the potential client. Ask and listen to client expectations and requirements of the job. Make notes of any specific demands for the materials or methods that will be required to complete the project.
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Go back over the project without the client, making your own notes about the extent of the project. Take note of any potential difficulties or things to work around that may cost time and money, and need to be accounted for in the bid.
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Break the job into smaller projects and make category lists for tools, materials and labor needed for each. Create these as you would outline headers, just enough to describe it, so that you don't forget when making a more detailed list later.
Job Costing
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Calculate all materials you will need for the job and get current prices from your suppliers. Always provide the same or better quality than you specified, even if it costs a little more; people remember shoddy work longer than high prices. Add 15 percent for overages and mistakes.
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Estimate how many man hours the project will take and list out all of the help you will need, plus their hourly rates. Call to ensure that everyone you want is available, or find a suitable substitute and get their rates. Always add 15 percent to the hours for potential problems.
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List tools and supplies that your workers will need and calculate the cost of purchasing anything that you have to buy, or will need to replace after this job. Add 15 percent so that an extra trip to the hardware store doesn't mean asking the client for more money.
Creating the Bid
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Write out a detailed proposal of all work to be done. Include a description of where and what, including all materials and a brief explanation of methods to ensure an understanding about what is being done. Include an estimated time frame, but do not guarantee a completion date unless it is required by the contract.
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Add up all job costs and itemize them in categories. Account for the broad strokes, not every single solitary nail and screw. Give the client enough information to give them confidence their money is well spent, without boring them with details.
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Type all of the descriptions and costs into an invoice program and print it out as a bid or estimate. Deliver it to the client with a smile and take the time to thank them for considering your company and answer any questions they have about the bid then, rather than later.
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References
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