Creating reliable estimates for projects is something that cannot be taken for granted, especially if you’re a general contractor or in the HVAC industry because accurate costing is what determines whether your project is a success or not. That said, it can be challenging to come to a final estimate when there are so many variables to consider. So, here are some tips from Talking Tradesmen on how to create estimates for projects easily and accurately so that your next project is a breeze to create from start to finish.
Site Survey
Before you can accurately estimate the cost of a project, it’s crucial to conduct a thorough site survey. This survey will provide essential information about the physical characteristics of the land, existing structures, and any potential obstacles or challenges. These factors can significantly impact the scope of work, materials needed, labor costs, and even the timeline of the project. For instance, a site with difficult terrain may require additional preparation or specialized equipment, increasing the overall cost. Therefore, a detailed site survey is an indispensable first step in creating a reliable cost estimate for any job, regardless of its type or scale.
Cost Estimating
Being precisely accurate when it comes to estimating costs is the ideal scenario. However, this type of approach is not always practical or feasible if you have to account for every bit of material or every hour of labor that is going to be required to get the job done on time and up to standard. Rather than relying on stick estimating, use estimating software to avoid wasting time on all the fiddly bits that may have little impact on your bottom line at the end of the day.
Unit cost estimating is a quick and reliable way to gauge the estimation of a project by doing a simple multiplication of the cost of a unit by the number of units to be used in the project to give you a rough idea of what the project is expected to cost in its entirety. This figure is then most often used with a software option for construction estimating to break the details down further to obtain a more reliable estimate.
Establishing your Costs for Labor and Material
Since these are going to be the two most important contributing factors to what your total estimate is going to be, it is a good idea to accurately assess what these are by taking into account any extenuating factors that could alter these costs significantly or minimally, such as fluctuations in supply and demand, other legal, administrative, or municipal costs you may be liable for, the cost of the land itself, etc.
Establish a Realistic Profit Margin
Your main goal should be to generate a decent profit from your project at the end of the day; hence, why it’s crucial to establish a reasonable markup value – one that you and your client will be happy with. This ensures that both parties realize value from the completed project.
Make Sure You Can Deliver
While bidding for a job is easy enough to do, being sure that you can fulfill your commitments down the line is another story, especially if you aren’t one hundred percent sure of all the details. After all, it’s better to be absolutely sure that you can deliver on a project rather than committing to a project only to find out that you misjudged your capabilities and resources to fulfill your obligations fully.
Ensure The Client is on The Same Page
It’s always preferable to be completely sure that you and your client are on the same page regarding cost estimates to avoid unnecessary disputes and misunderstandings. To be doubly sure that one understands the other correctly, have your final estimate in writing and signed off so that your project can go ahead as planned.
Deliver The Invoice
Using invoicing software could be your saving grace when you need to go from an estimate to an invoice in a hurry, but you want to be sure you are doing so accurately. The ideal software should be easy to use for invoicing and allow you to create payment schedules for clients quickly and seamlessly, create invoices for clients where the applicable taxes are already taken into account, alert you to pending estimates that are yet to be confirmed, as well as allow you to create branded templates that you can customize according to your company’s requirements. Use tools like ServiceTitan or
Follow Up on The Estimate
Excellent customer service also goes a long way in ensuring clients are happy at all times. So be sure to follow up even after an estimate has been approved to ensure your client is completely satisfied with your final offer as well as to allay any concerns or reservations they may have now that the project is in full swing.
Accurate estimates are undeniably valuable when it comes to sticking to quotes and building a reputation because trust and credibility are two of the most important building blocks in creating long-lasting client relationships. Use tools like Moosend to create long-term value of the customer by putting them into automated email flows.
Moosend is a powerful email marketing automation software with world-class features, state-of-the-art automation flows, and lead generation tools that help you grow your business from day one whilst maintaining an award-winning all-in-one user interface.
Thanks to Jessica Brody with ourbestfriends.pet, for creating this great article! If you’re a pet lover, check out her work.
