Estimating:

Below is a breakdown step by step on how 99% of builders obtain pricing for your home project:

1. Obtain already completed blueprints from either the owner or the architect
2. Generate copies of those prints for their subcontractors to quote
3. Set a bid date for the subcontractors to return their proposals
4. Take the lowest number from the subcontractors and plug in into their estimate they are going to give the homeowner.
5. Submit the proposal to the owner
6. Sign the contract with the owner
7. Issue purchase orders or subcontracts to their subcontractors


Here is what’s wrong with this picture:
1. The builder didn’t estimate the plans directly. The builder relied on the subcontractors to include everything. If the builder didn’t take off the lumber package then how does the builder know whether or not the lumber company gave them the correct number?
2. The builder has signed a contract with both the homeowner and the subcontractors. If the subcontractors didn’t include everything you better believe the builder is going back to the homeowner for more money. The builder will not pay for the project out of his own pocket.
3. If the homeowner says no you were supposed to include that. The builder will proceed in one of two ways. 1. Stop working until the change order is signed. 2. Agree that the subcontractor should eat the cost which is going to result in the subcontractor cutting corners all the way through the project and showing up whenever they feel like. Remember a project in which just one party is losing money is a disaster waiting to happen.

Here’s how we do it:
1. We meet with the client and or architect depending on the stage of the project and get an understanding of what is needed for the project to be successful.
2. We then take those plans back to our office and we literally estimate every single thing associated with the project. When we’re done with the estimate we can tell the homeowner exactly how many 2x4’s are needs, how many sheets of plywood, how much roofing, how much concrete, how much everything.
3. By doing the estimates ourselves we then will know whether or not the subcontractors have included everything in their proposal. If we have a lumber package that’s let’s say $10,000 lower than the next proposal we will simply compare the quotes to what we have estimated and see who is more accurate. This allows for limited change orders through out the project and thus a smoother running project where all parties are happy and making money, including the homeowner.