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Thread "Paying for estimate preparation." started by Gor&co on 05/18/2006 8:22am
Top : Office Questions : Paying for estimate preparation.
Posted by
Gor&co
on 05/18/2006 8:22am
Paying for estimate preparation. 
This is a different kind of 'paying for an estimate' question.

I don't do much "new work". The new construction that I do is generally specialized or high end homes. Lately, I've been swamped with prints waiting to be bid on. Quite frankly, I'm plenty busy, and don't care whether I win these bids or not, but I want to give some sort of estimate anyhow.

I've been toying with the prospect of using an estimating service. I see ads in trade magazines and get letters from guys that do this. You just mail off your prints, along with what all your overhead %'s, labor, and profit are to be, and they prepare the estimate for you.

Anyone ever used such a service? Did it work out? How are these guys paid? What are the potential pitfalls (other than possibly getting a bid that is way too low)?

Gor&co

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Posted by
redfinger999
on 05/18/2006 8:23am
Re: Paying for estimate preparation. 
I've haven't been that busy to worry about something like that, good for you, hopefully I will have that problem soon I wonder about the differences in rates between locations though. I've purchased some estimating books and even though they have different prices for different areas, they still are way off. Usually they are way too high for my area so I don't use them. I would wonder about their ability to compensate for local markets. Although, if you are that busy you don't have to worry about the bids coming in a little high so in your case it may be a good idea to try them out. Although personally I don't know anyone who uses these services it does sound like it's worth a try for a busy contractor. I'll bet you could tailor these services to work with your current prices and labor hours, I'm sure they would be flexible if they want the business. (I.e. our cost on a 200 a panel isn't $550 dollars like some books say it is) Maybe after a few tweaks here and there it would work out well and would be cheaper the hiring an estimator.

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Posted by
etione
on 10/11/2006 11:07am
Re: Paying for estimate preparation. 
I am a contractor and put numbers together for different other contractors. The pros are increased efficency for you. The cons are paying a fee for work done and assuming liability for the project. I use high end software so I can actually set up just like you are now. Production rates, vendors,etc, all need to be provided. You also need to stay available via phone for questions on your methoods. Generally you can get this done for a flat fee per bid or percentage on winning bid. The other response that mentioned "costing tools", they generally are 20% over market evaluating at worst case scenarios. The use for them is quick reference for addon work etc..Hope this helps

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