I need some advice on setting up my ConEst Estimating software.
It so happens that when I submit a proposal my prices are higher then the other. It looks like my labor unit is higher. Even though I am using the conest labor which is less time per task then labor 1. For Neca labor units Conest's Labor 1 is like Neca Labor 1.
Any way I am just wondering if someone can help.
I would also like to get some insight on indirect labor and djc. I have my service rate at 75 hr. But I use a Flat rate system. However I use that same rate with estimating bigger jobs. Should I knock off the non-bilible rate? Could that be the problem.
I know when I am doing service I drive for half of the day. However when on a job I would be there all 8 hours.
Tanks for the help guys
Several issues to address here, but first, you have to separate how you price your service rates vs your construction rates.
The bid recap on Conest allows you to apply cost to your direct labor (adjust for overhead, difficulty, labor burden rate, etc), as it applies to THAT job. The base rate you use is figured the same way. How will the job be manned? Say it's a 4 man average job and you plan to use 2-journeymen and 2-helpers, what is their average rate. Conest allows you to build this rate, (i.e. you have your J-men @ $27 and helpers @ $15 = $21/hr ave base rate). Your burden is added to the right, say 35 to 50% depending on your company.
Now your indirect labor, again, as it applies to THAT job is added if you will have a PM and/or a superintendent or forman that will be working with his tools, but has a certain percentage of his time not working with his tools. So if your job is 6 months long, how many hrs/week will a PM and forman spend working on that job for the 6 mo duration.
You add their rate and burden (which office personnel burden is less).
The expenses tab is pretty self-explanitory. Lifts, cranes, etc. I will point out that if you apply costs to ditching in the body (audit trail) or your takeoff, that cost will show up there in expenses.
DJC has costs that likely apply to every job and you use over and over. You can add a percentage to labor for small tools. Travel, perdium, etc. The middle section has items that are calculated based on job duration, that is entered in the last tab, so DJC will calculate 6 months rental on trailers, mobile storage, office trailers, phones, ice, etc. You can edit these costs up/down/out.
At this point you go to the final price tab and add tax, overhead and profit for the final bid price.
Be sure to always fill out the job info like duration, square foot, etc. You can customize with formulas, ratios that help you evaluate the job and how you choose to mark it up. Such as, average man loading, cost/sq ft, material/sq ft, mat/lab ratios,.....really anything. These will show up on the first tab at the bottom.
It's pretty cool once you get it set up.
As for Conest labor units, you may tweak them some, but they are pretty close to many published rates I've used for years. I think your problem is how you build your labor costs based on that particular job. You can't just plug $75/hr and expect to be competitive.
Some here will disagree with this and possibly flame me, so take it for what it's worth and your milage may vary.
Hope it helps
