The bidding process

[michael nye]

Can anyone give me some help or tell me a simple method for bidding work. I have been contracting for 10 years but still find it a block. I currently just geustimate how long it will take and figure my wage per hour give it some pad for error and profit, then materials and waala that's the price. I can add I am fairly competitive this way but am in the upper price range for our area but I also only do top guality work and feel a price should go with that. Thanks

 

[jxofaltrds]

Re: The bidding process

Try National Construction Estimator if these are not large projects. "Sounds" like what you want. It gives average times to perform work, and allows you to change the default prices.

 

[bphgravity]

Re: The bidding process

I keep a log of common electrical installations and the material and time used on the job. I found that I was performing the same calculation over and over again for identical jobs. This allows me to quickly adapt a previous job to the new proposal. It also keeps my prices uniform. Several times I have given an estimate where the owner says I gave a lower quote for the same job to a friend of theirs. Nothing is more annoying. The basic calculation I make is labor rate x estimated work hours + materials at cost/.60 + 15 to 20% = bid price.

 

[masterinbama]

Re: The bidding process

With all the estimating software out it is becoming less of a guessing game.But a good tip i learned was to keep a running track of job costs for different types of construction I.E.retail,health care,schools etc.then catagorize these into a price per square foot.When you complete your estimate compare it to your square foot sheet to see how close you are.This is for double checking your numbers only never bid off this square foot sheet.I have found that when my numbers are way out of whack I can easily go back and find my mistakes usually a take off page missing or added twice but always double check yourself.
Definition of a low bidder:The poor S.O.B. that is wondering what the hell he missed

 

[four]

Re: The bidding process

Have question on formula if my rate is $75.00hr and job is 4 hrs and parts is $50.00 what would be your bid?
75x4=300
300+50=350
then what?

 

[bphgravity]

Re: The bidding process

I would price this as: 75x4 = 300
50/.6 = 80
300+80 = 380
380+15%= $435 total

 

[four]

Re: The bidding process

bphgravity:
do you use that formula for residential, commercial or both? i used that formula on a few jobs that i have already done that i thought i underbid and it seems to be really close to what i should have got.

 

[bphgravity]

Re: The bidding process

If you read my earlier post, you will see that I have created a reference book that gives me a ball park of where I want to be on price. On new or unique jobs, I perform this calculation for any type of work. If risks, hazards, or time frames are invoved, I may even go as high as 25% of total. This is an average of my method.