Accurate Bidding

Making Finished Bids

If you are willing to spend more time than you would on a rough estimate, you can use the BidMagic estimating software as a high-accuracy bidding estimator. To attain the greatest degree of accuracy, you'll need to enter more detailed information about the project than you would need to do for a ballpark estimate.

NOTE: If you use MacNail Estimating, you can create even more accurate finished bids by exporting from BidMagic to MacNail (see page 388).

To make a finished bid with the BidMagic construction estimating software program, follow these steps:

1. Start on the Basic Costs card. Click the Finished Bid button at upper left. NOTE: In a finished bid, you won't use the Locality and Quality factors. Instead, you'll adjust specific line item costs to account for locality and quality differences.
2. Enter wage rates and fudge factors for the project.
3. Go through the Overhead & Profit and Soft Costs cards, and enter your basic operating costs.
4. Go through the Dimensions cards and enter detailed measurements from the blueprints or your field notes. You'll probably need to take a bit more time entering dimensions for a finished bid, since you'll be concentrating on every part of the project, not just the largest portions.
5. Go through each Specifications card and enter every line item cost that you'd like to include in the project. You'll probably spend more time at this than you'd do for a rough estimate, since you'll be trying to include everything that will affect the project cost. In some cases, you may want to enter cost adjustments for fancy work, small quantities, or other conditions that may affect the project cost (see pages 366 to 379).
6. To print a bid report, choose Print Bottom Line from the File menu.

NOTE: If you prefer to 'tidy up' your bid in a spreadsheet program or a word processor, choose Export Bottom Line from the Data menu. It will create a text file that you'll be able to open (and reformat) in another program.

When creating a finished bid, pay close attention to every detail of the project--every detail and note in the blueprints should be examined, and the project's Spec Sheet should be read through very carefully.

If there are specific items in the project that are not already included in your Price Book, either add a new unit price to the Price Book (see page 258) or enter the items as an 'other' item (see page 253).

If part of the work looks like it will be easier or more difficult than normal, create an 'other' item in that cost category, and enter an adjustment line item (see page 346). Use your best estimate of the cost increase or decrease in the line item, even if it is just a 'gut feeling' price.

Before turning in a finished bid, it's a good idea to double-check the Bottom Line, to make sure that all costs appear to be in line.

HINT: You may also want to print a list of items actually included in the bid--to do that, choose Print Specifications from the File menu.

How long will it take?

The time it takes to create an accurate finished bid in BidMagic depends on the size and complexity of the project. You should probably plan to spend between 1 and 10 hours on a finished bid. Most of this time will not be spent in BidMagic, of course.

On a $100,000 remodeling project you might spend the following amounts of time:

• Checking blueprints and specs--21/2 hours
• Entering info into BidMagic--1 hour
• Site visits, checking with architect or owner--21/2 hours
• Getting quotes from subcontractors--1 hour
• Getting quotes from suppliers--1/2 hour

How Accurate will it be?

Experienced estimators using unit price estimating can often hit reliably within 2% or 3% of actual costs on their bids. Less experienced estimators (or those in a hurry) should still be able to hit reliably within 5% of actual cost when using BidMagic.

HINT: The more care you use when entering custom details and unusual conditions, the more accurate you can make your bids.

To maximize the accuracy of BidMagic for bidding, calibrate it against projects that you've already done (see page 102). For best results, use a job cost accounting system so you always get feedback on the accuracy of your bids.

That way you can refine the accuracy of your unit prices as time goes by.

WARNING: Since BidMagic is an estimating tool, it relies on the care, judgement and experience of the person who uses it. The best way to make BidMagic more accurate is to become experienced with it, and to become a better estimator yourself!