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There are five key things that you just have to get right (all of them) when you price a construction job, whether it’s a small extension or a five-bedroom new build. Without them you risk breaking even, let alone making a profit. All of which can be addressed with the right estimating software. Basically, not using estimating software like EstimatorXpress is like trying to use a wheelbarrow without its wheel, a ladder without its rungs, a spade without a handle…

And it’s in these five areas that you can’t afford to fall short – at all:

Overhead Costs

The van you drive, the computer you use, the phone you make your calls on, the insurance for your tools – these and everything else are there for the benefit of your customers. Make sure that every job has a percentage of all your expenses associated with running a business. It’s as important as the bricks and tiles.

Labour Costs

Labour is a big part of the construction industry. Make sure you calculate all the hours that will be worked. Keep on top of the different rates for brickies and plasterers and so on. And pass all the costs on to the customers. Make sure you use their time wisely. Waiting around for plant and materials will come off your bottom line…

Material Costs

Forgetting to factor in the cost of all the materials can lead to inaccurate quotes and lower profit margins. The customer needs to pay for every nail, screw, tube of mastic, masking tape… it’s not just the big ticket items that matter. And don’t rely on old price lists – materials cost more than they did a year ago – and many materials like timber fluctuate on a monthly basis.

Contingencies

What about those unexpected costs or delays that may arise during the course of a project? Have you got a contingency plan in place to manage these unforeseen costs? Most jobs have at least one hiccup. Some customers don’t pay for all that they should. You need rainy day money so jobs don’t get held up because you don’t have the funds. Which brings us on to…

Profit Margin

The profit percentage you put on each job is there to cover future problems, new kit, marketing, pensions, and much more. If you undercharge that profit margin you ultimately impact the financial health of your business. You want a sustainable future, and profit is key.

What next?

EstimatorXpress does so much of the number crunching for you. Explain the job and it will allocate all the materials, the labour hours, prompt you for a profit margin and much, much more. Talk to the team on 0117 016 7898 about EstimatorXpress or our Take-off & Estimate Kit for prompt, accurate estimating. Book a quick 1-2-1 walk through of the software and enjoy a free 14-day trial. And know that all five things will be on your radar for your future construction projects.