| This will serve as a help guide by providing some tips | | | | Either way you are paying for someone to review |
| and techniques for estimating the cost of building a | | | | the plans and quantify what is needed to build the |
| new home. As an expert residential estimator there | | | | project. |
| are many things to consider before you begin | | | | If you have your lumber yard quantify the material |
| estimating. | | | | remember he is trying to win the job so he may |
| Construction estimating can be difficult and it does | | | | provide a takeoff that is too tight. This does not |
| require a high level of accuracy and detail. It also | | | | benefit you if you have to keep reordering more |
| requires good math skills and a little geometry | | | | lumber. The obvious answer to this is to have your |
| knowledge. It requires the ability to read and | | | | framer put together the lumber list for you. Well that |
| understand construction drawings and details and | | | | does not work either because he will over order so |
| how they are applied. Basic construction knowledge | | | | he does not run out of material and have to make |
| helps and being familiar with the local building codes. | | | | additional trips to finish. They want to finish as fast |
| You may want to enroll in a construction estimating | | | | as possible so it can get inspected and they can get |
| course at the local college or technical school. Another | | | | paid. The bottom line is neither are working in your |
| option is to purchase an estimating manual from your | | | | best interest. |
| local bookstore or go to estimating.org which offers | | | | I recommend you do not attempt to quantify the |
| online courses and has a bookstore. | | | | materials yourself. I have outlined valid reasons why. |
| One of the rules that I have learned along the way is | | | | It is very technical and requires someone with years |
| the old saying, "measure twice cut once." Whenever | | | | of estimating experience combined with hands on |
| I do a takeoff or an estimate I always follow this | | | | field experience. |
| rule in order to help minimize mistakes. | | | | Soliciting Bids |
| What will you need to put an estimate together? | | | | This part of preparing an estimate can be done by |
| You will need a notepad, a calculator, an architectural | | | | most anyone. I suggest you contact your local |
| scale, and an engineering scale. These are the basic | | | | builder's association to get subcontractor referrals or |
| tools you need to put an estimate together. | | | | use Angie's List, which prescreens contractors as well |
| Architectural & Structural Drawings | | | | You may have heard the term RFQ - Request for |
| Now you are ready to open the plans and begin to | | | | Quote. You want to solicit at least contractors. Most |
| review them. The easiest thing to do is look them | | | | people will say three bids, so why do I recommend |
| over and get a feel for the basic building concept. | | | | five bids? Let's say you contact five contractors and |
| You should get familiar with the information that is | | | | all five contractors bid the project. You got to figure |
| contained on each sheet. | | | | one will be the high bid and one will be the low bid. So |
| Most construction projects have a set of | | | | those should be set to the side because chances are |
| architectural drawings and a set of structural | | | | the low bid is probably missing something and the |
| drawings. I will explain the difference between the | | | | high bid is priced too high. The remaining three bids |
| two. | | | | should be reviewed thoroughly to make sure you are |
| It is important that the plans are to scale and have all | | | | comparing apples to apples. |
| the required details and wall sections needed to | | | | When you contact all the subcontractors that you |
| properly estimate from. | | | | want to bid your project be sure to give them a bid |
| What is typically included in a complete set of | | | | due date. That way you do not have to chase them. |
| architectural plans? The drawings at a minimum need | | | | Give them a reasonable amount of time to review |
| to contain the following sheets: a title/cover sheet, a | | | | the plans and specifications, typically a week or two. |
| site plan, a floor plan, a foundation plan, four | | | | Analyzing the Bids |
| elevations, a roof plan, an electrical plan, a sheet with | | | | First organize all your bids by trade, such as putting all |
| a typical wall section, a sheet with the window and | | | | your electrical bids together. A three ring binder with |
| door schedules, and a sheet with the necessary | | | | dividers and tabbed with each category is a good |
| building and architectural details. | | | | way to organize all the bids. |
| The structural drawings are drawn by a structural | | | | Once you receive the bids you need to read them |
| engineer, not the architect, unless the architectural | | | | carefully and review them against the plans and |
| firm has an in-house engineer. Any interior shear wall | | | | specifications. They should have the project |
| or bearing wall is detailed on these drawings. | | | | information and the date. They need to be detailed |
| The engineer calculates all the uplift and bearing loads | | | | and itemized. The cabinet bid should not say |
| of the roof trusses on all the interior and exterior. | | | | "cabinets". Instead it should list and quantify all the |
| After doing the calculations they determine which | | | | cabinets by finish, style, size, and location, example 15 |
| walls are shear or bearing or both and what is | | | | lnft of 42" oak raised panel kitchen cabinets, 1/ea 60" |
| required to properly support those uplift and or | | | | melamine master bath cabinet, 1/ea 36" melamine hall |
| bearing loads. The engineer will put a structural note | | | | bath cabinet, etc. If it does not include the |
| on any wall that is bearing or shear. The note will | | | | countertops it should state that so there is no |
| indicate the sheet number and detail number | | | | misrepresentation. |
| illustrating how that wall needs to be built. | | | | When a proposal needs to be revised, make sure it |
| A load bearing wall for example could have a | | | | states the revision date or states "revised". That |
| thickened concrete footer with two pieces of steel | | | | way when you compile the bids and you need to |
| and the wall above it may need to be framed out of | | | | refer back to them you will be looking at the latest |
| southern yellow pine versus spruce with special metal | | | | one. |
| hardware. These should be highlighted on the plan so | | | | The proposals should also indicate workmanship and |
| they will not be overlooked. Sometimes the hardware | | | | warranty. All this is important, especially if the |
| called out by the engineer is a special order and can | | | | contractor does not perform and mediation or worse |
| take several weeks to get. So if you wait until the | | | | litigation is required. |
| framing package needs to ordered and there are a | | | | How to Negotiate the Best Price |
| two or three shear walls with special order hardware | | | | Once you determine the three competitive bids the |
| it could delay the construction. | | | | hard part is negotiating with the contractors. You |
| You need to make enough copies of the architectural | | | | have to assume that all the quotes will be inflated |
| and structural plans for multiple subcontractors and | | | | with the understanding you will negotiate less. |
| suppliers bidding the job. To save you money, ask | | | | Therefore, you need to get them down as low as |
| your architect and engineer to convert the drawing | | | | you can to the real number. I always ask my |
| files to a PDF file. This will save you time as well and | | | | subcontractors and vendors if the bid is negotiable. |
| make it convenient because you can email them to | | | | Remember it never hurts to ask, the worse they can |
| as many subcontractors and vendors as you like. | | | | say is no. And if they say yes, then I ask them what |
| Specifications | | | | is the maximum they can cut their bid. They normally |
| A list of product specifications must be provided so | | | | respond with, "how much do I need to cut it to get |
| all the subcontractor and vendors are bidding apples | | | | the job" and again I put it back on them by saying, |
| to apples. This is a list detailing all the products and | | | | "the maximum you can cut your price". Never name a |
| finishes you want in your new home. It does not | | | | price first! You should already have a budget of what |
| make sense to send the plans out to bid without a | | | | you can afford to spend on each item. You never |
| set of specifications. Without this, the bids you | | | | know whether or not they would be willing to do it |
| receive will not be apples to apples. Then you will | | | | for less than that. |
| need to have them all rebid the project. It wastes a | | | | Once they lower their bids and you determine the |
| lot of time and creates a lot of unnecessary work | | | | low bidder you need to compare warranty, |
| for the subcontractors. Remember these guys do | | | | workmanship, and references. Price is important, but |
| not need practice bidding and some of them may not | | | | if they can not finish the job the price does not |
| submit a bid without a set of specifications included. | | | | mean anything. You definitely need to check both |
| Therefore, everything from paint colors to the floor | | | | project references and credit references. The |
| finishes need to be selected. They need to be listed | | | | bottom line is you want the best contractor for the |
| on the plan or on a separate document. | | | | least amount of money. |
| Doing the Takeoffs | | | | Preparing an Estimate |
| It is too technical to put in a written guide how to | | | | Once you have awarded the job to each |
| quantify the concrete, masonry, lumber, and shingles | | | | subcontractor you will want to prepare an estimate. I |
| just to name a few. For example let's assume you | | | | recommend using Microsoft Excel to organize your |
| need to quantify the masonry block on a single story | | | | estimate. It is the easiest and mostly widely used |
| block home. You have to know how the wall is | | | | spreadsheet application, especially in construction. |
| assembled which includes the ability to visualize and | | | | It helps organize your estimate. You can use a |
| understand construction methods. If the exterior | | | | separate worksheet for each trade within the Excel |
| walls have multiple heights, a regular block (8x8x16) | | | | workbook. You can enter all the material lists and bid |
| needs to be added and a lintel block needs to be | | | | amounts you receive. You can track the job to make |
| deducted in each location where the plate heights | | | | sure you are on budget. You can email your local |
| change. If some of the walls are on a 45 degree | | | | suppliers your material lists so they can enter their |
| angle you need to be able to know whether to | | | | unit prices and they can email it back to you. |
| estimate an angle block or butterfly block. The door | | | | One of the sheets needs to be the estimate |
| and window openings need a certain quantity of | | | | summary which has the total cost for each phase or |
| regular blocks deducted plus a half block every other | | | | trade. It should include your preconstruction costs |
| course on each side of each opening. You could have | | | | and direct construction costs. |
| too much of one size block and either not enough or | | | | It should have the estimate total at the bottom. |
| some units not accounted for at all. These | | | | There are endless possibilities you can do with Excel |
| inaccuracies will throw off your budget and cost you | | | | and the level of detail is up to you. |
| time and money. This ability and knowledge can not | | | | We have for sale blank estimates that are in Excel. |
| come from a book but through hands on experience | | | | These are templates that we use which can help you |
| combined with years of estimating experience. | | | | calculate some of the material quantities and can also |
| If you decide to quantify the materials yourself I | | | | be used to prepare your estimate. They contain |
| suggest you refer to Walker's Building Estimator's | | | | prebuilt formulas for calculating concrete, steel, |
| Reference Book, which has instructions on how to | | | | masonry, and lumber. All you need to do is enter |
| estimate the quantities of concrete, masonry, lumber, | | | | counts and lengths where indicated and the quantities |
| drywall, etc. It is considered the bible for construction | | | | are calculated for you. Contact us to send you a |
| estimators and it is one of required books included in | | | | sample template. |
| the study guide for most state contractor's exam. | | | | Conclusion |
| Just keep in mind that these reference books do not | | | | I hope this has provided you will some good |
| have tips and tricks as well as real world experience | | | | information on how to prepare an estimate if you are |
| as explained above. | | | | building a new home. We are available to answer any |
| You can employ the help of your subcontractors | | | | questions you may have. We can help you put |
| bidding the work or your suppliers. You may pay | | | | together an estimate for any type of construction |
| more for their product or service or you can hire us. | | | | project, big or small, residential or commercial. |