Readiness check

Is your estimating and bidding leaving money on the table?

Most contractors who struggle are not losing money on the job site. They are losing it on bid day, in the numbers that went into the price. Answer for how you actually bid, not how you wish you did. The score stays on your device; enter an email only if you want the estimating checklist sent over.

1. Do your bids price from current, real cost data (labor rates, production rates, material) rather than gut feel?Yes, current costed data and production ratesPartly, some data and some gutMostly gut feel and last year's numbers

2. Do you know your true company overhead rate and recover it in every bid?Yes, a known rate recovered on every jobA rough idea, not consistently appliedNo, I do not really track overhead

3. Do you apply markup and margin correctly (price = cost / (1 - margin), not cost x markup)?Yes, I price to a target margin correctlyI use a markup but am not sure of the mathI confuse markup and margin or just add a percent

4. Do you estimate project general conditions as a detailed, schedule-driven line list?Yes, a detailed GC list tied to the durationA flat percentage for GCsI do not really break out general conditions

5. Do you carry a contingency sized to the project's real risk and design completeness?Yes, a risk-based contingency, separate from profitSometimes, a flat numberNo contingency, or I bury it in profit

6. Do you screen jobs with a go/no-go decision instead of bidding everything?Yes, we screen fit, risk, and win chance firstLoosely, mostly we bid what comes inNo, we bid almost everything

7. Do you price change orders at full markup instead of giving them away?Yes, every CO is priced and approved before workSometimes, some get done on a handshakeWe often eat extra work to keep the peace

8. Do you feed actual job costs back to compare against the estimate and improve the next bid?Yes, actuals vs estimate close every jobOccasionally, not a habitNo, the estimate is forgotten once we win