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Moving from the field to the office: Part 2-B
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Author: Michael Stone
Article:  |
Moving from the field to the office: Part 2-B
How to move from thinking like a mechanic
to operating like a business owner This article is the final part of a two part segment. The first segment can be found here. Accurate Estimating I have met few people who like to do estimates, but estimates are a necessary evil. Keep in mind, the better you get at estimating, the more money you will be able to make. There is one thing to remember that will take you from being an average or good estimator to being a great estimator.
| When you are ready to do your estimate, have all your forms ready and in order. That includes your estimating form(s) and any checklists that apply to the job, one or more tape measures, writing and/or drawing pads, pencils and erasers, and one of the best tools, a digital camera or video recorder. You will also need clothing and shoes that allow you to crawl under the building or up in the attic if needed. | 
Michael Stone
| Every job can normally be broken down into parts. Some of those parts will be the same as other parts of other jobs already completed. Those will be easy since you’ve already done the donkeywork on them. If you followed up that job with job costing and analysis to see how accurate your estimate was, you should be able to compile that part of the estimate both quickly and accurately. You can then focus on gathering information on the new parts of this job.
Take your measurements, draw your sketches, and take pictures. Even on a small job like a bath remodel you should be taking 20 to 40 pictures, a kitchen can have 75 to 100 pictures or more and a large house remodel can use several hundred pictures. Many cameras today have cards that hold 750 to 800 pictures or more with good resolution so it is easy to take as many pictures as you need, and then a few extras. Having pictures to review can save you hours of time driving back and forth to the job site to gather information that you should have accumulated on the first trip. If you’ve got a small video recorder, that also helps. While I can’t teach all the tricks of estimating here, I can share some basics with you that make a huge difference in your ability to do accurate takeoffs. First, be prepared mentally when you do your takeoff. Have all your tools at hand and don’t take any shortcuts. Do your work – all of it. There are no shortcuts to an accurate estimate.
When you sit down to build your estimate, block all distractions, and that means getting away from the telephone. Let someone else answer any and all calls that come in. Tell others in your company that you are off limits until the estimate is complete. No exceptions.
One of the tricks I used to use when estimating was to go into the office, close the door, and resolve to not open the door until the estimate was complete. The only reason I ever came out of the office before the estimate was complete was if I wasn’t able to corral a number from a sub or supplier. It wasn’t fun, but it worked for me. Have a second person check all your numbers. If you have anything on your estimate sheet over $300, it should be a quote from a supplier or sub or have backup confirmation from someone else in your company. That makes sure you are accurate and that you have a good paper trail for that estimate.
Estimating is a skill, and skills take time to perfect. Make sure you follow up every job with a comparison of the estimate to the actual cost so you can learn what is being done correctly, and what needs work. Over time, you will be able to see your estimating skill improve. And when you are good at something, it’s not as difficult to do.
Running a business takes practice. Practice doing the things you need to do. Practice doing the things you don’t like to do, and doing those first. Running a business is very much like sales. It is the highest paying hard work and the lowest paying easy work there is. It is up to you to determine your own income.
Stay focused and make good stuff happen.- - Michael Stone |
End Part 2A - More Michael Stone articles are available right now as a part of our INSIDERS Service. A new level of Business Information, Promotion and Services from Contractor Power. Find Out More Michael Stone has more than four decades of experience in the building and remodeling industry. He wrote the book Markup and Profit; A Contractor’s Guide, published by Craftsman Book Co, and his second book, Profitable Sales, A Contractor's Guide was released in 2007. Michael offers Coaching and Consulting services for construction companies throughout the U.S., as well as products for business management, and is available for speaking engagements. He can be reached by e-mail at michael@markupandprofit.com, by phone at 1-888-944-0044, or on the web at www.markupandprofit.com
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