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Estimating the cost of a project is critical to your business success. If done correctly, your company will be profitable. If done wrong, you’ll lose money. Michael Stone, a successful construction business consultant and trainer, shares his years of hands-on experience estimating residential projects in this manual. When your estimated costs are reasonably accurate and you’re using the correct markup for your business, you can be confident you’re charging the right price for your work. The right price gives you the money you need to cover all job costs, overhead expenses, and make at least 8% net profit.If you’re responsible for estimating remodeling or renovation projects, new homes, specialty work, or light commercial projects, this book is for you. You might be an estimator working for someone else or you might be the business owner who also does the sales and estimating for your business. The book is divided into multiple short chapters for easy reference. It discusses:methods of estimating details to tie down before you beginestimating laborlabor rates, how to calculate, and which one to useworking with other contractorsaccounting for errorsadjusting for difficultymaterial and installed allowancesand much moreEstimating isn’t difficult when you have a system in place. The purpose of this book is to help you create that system. It’s an approach to estimating that helps you estimate without having to think about the process. An orderly approach makes estimating easier and more accurate. Estimating is work. It requires dedication, focus, and practice to get it right. But it isn’t as difficult when you have a system in place. The size of the project might vary, but the process doesn’t change and this book is about learning the process.This book doesn’t guarantee perfect estimates or a profit on the jobs you estimate. It’s up to you to do the work. If you follow the principles outlined, the system you develop for estimating will improve the ease and accuracy of your estimates, and that will make your company more profitable.
