©Building Advisor

SOME TIPS ON ESTIMATING

Estimating is part art and part science. Even professionals often differ by 10% or more on estimating a job. Since estimating is a challenge even for experienced contractors, you can expect it will be more of a challenge to you as an owner-builder or owner-contractor.

START WITH A CHECKLIST

Let’s assume you are planning to do most of the work with subs (rather than swinging a hammer yourself). Start with a list of the main work categories that you need to include. It’s best to start with a template or checklist to help you come up with a complete list.

MATERIAL TAKEOFFS

You will probably be purchasing the main building materials – lumber, doors, windows, etc., while some materials such as roofing shingles, plumbing, and electrical supplies may be provided by subcontractors and included in their bids.

To get a bid on the project’s building materials, you will need to compile a complete list of materials called a “takeoff.” If you are using a stock plan, you can usually get a takeoff from the plan company for a fee. Also some lumberyards will do a free takeoff from the blueprints. While these can be helpful as a starting point, it’s unlikely that the plan company and the lumberyard will come up with the same takeoff. Another lumberyard will come up with yet another list.

For one thing, the stock company will not know what codes and standard practices are for your area. For an accurate takeoff, and to solicit competing bids on material, you should do your own takeoff – or pay someone experienced to do so who understands local building practices, material waste factors, and the little (but often costly) items that are easy to overlook. This could be your architect, designer, draftsperson, or construction manager if you are working with one.

With your detailed list of materials, you can get apple-to-apples comparisons from competing lumberyards. You may get a better price and better service by working with one lumberyard, and it is certainly the most convenient way to operate. But if there is a substantial savings on a big ticket item like windows and doors, you will need to split up your order to take advantage of the savings.

CHOOSING SUPPLIERS

As your own contractor, you will most likely be buying all lumber and basic building materials yourself and should negotiate for the best prices you can get. Don’t expect much of a discount on lumber and basic building materials, but you should be able to get contractor pricing on windows and doors, skylights, appliances, and specialty items.

It addition to the lowest price, you will want to work with a lumberyard that will guarantee its prices the longest and one that will let you open a contractor’s account, allowing you to pay monthly. Otherwise you may need to come up with the cash until your construction loan draw is disbursed. Most yards will guarantee prices for 30 days, but see if you can get a quote extended until the materials are delivered. In times of volatile prices on basic commodities like lumber and drywall, you may only get a 7-day quote, making it difficult to budget.

GETTING SUBCONTRACTOR BIDS

The best place to get subcontractor names is from other subs. If you already know a good plumber, electrician, or carpenter, that’s the best place to start. Ask who they would recommend for various trades you will need. As with much else in life, the good guys know who the other good guys are. Also subs who have worked together on other jobs are more likely to work together efficiently and cooperatively. (For example, you won’t have two subs arguing over who get to run his pipe or duct through a certain joist bay.)

Contractor-oriented lumberyards, and specialty suppliers (masonry, windows, floor coverings, etc.) also will have a list of names, but may be reluctant to recommend one over another.

Also look in your own neighborhood. Whose trucks do you see around? Ask your friends and neighbors who they have used and how it went. If there are new homes going up in the area, stop by and see who is handling the excavation, foundation, framing, and other subtrades. Collect business cards and phone numbers to add to your pool of potential subs. .

When soliciting bids, you may find that one sub can provide more than task (installing, sanding, and finishing hardwood floors, for example), which will probably save you money compared to hiring two separate subs. Still, it worth getting at least two bids for each job – and always get them in writing with sufficient detail that you know exactly what is included and excluded from the bid. Compare competing bids to make sure they are apples-to-apples.

Make sure you get fixed bids, not labor-and-materials or “cost-plus” estimates. You may find yourself paying a plumber or electrician $75 an hour to go to the supply house to get a common item that should have been in his truck. Or you may pay his helper $50 per hour to stand around waiting for the boss to give him something to do. The most efficient crew for most small jobs is a crew of one. If your sub wants to pay a helper to fetch his tools and get coffee, that should be his expense, not yours.

If you have already selected a particular product or material – for example, a specific architectural roof shingle – solicit bids on that specific item, so you can get apples to apples comparisons. If you need to use an allowance in your bid, say for carpeting or lighting fixtures that you have not yet selected, use the same allowance in competing bids. If the sub or supplier recommends an alternative to the product of material you have specified, get him to bid your original selection and the second one as an “alternate.” Later, you can select the alternate if you like without triggering a change order.