Calibrating BidMagic Estimates

Step One--Figure Your Actual Costs

Before you can see how our estimating prices compare to yours, you first need some actual numbers from one or more projects that you have already done--or that you have at least estimated using your current method.

What kind of project to use

You can use any of the following types of projects to calibrate the BidMagic construction estimating software (with the best types listed first):

• Jobs that you have already completed that have detailed job cost records. Ideally the job cost records should be broken down into construction cost categories (roofing, framing, trim, etc.) and into labor, material and subcontractor costs.
• Jobs that you have already completed that have an overall total of actual costs spent on the job, and a rough idea of how the costs were divided.
• Jobs that you have already completed, for which you have at least a 'ballpark' idea of how costs went, or how well it compared to your original estimate.
• Jobs that you have estimated in detail, using a 'sticks and bricks' approach. If you have a choice, use a project that has already been completed, or one that is at least partly underway.
• Jobs that you have estimated using a simple rule of thumb, or some other 'ballpark' method.

The best projects to use are major remodeling projects, additions or new construction, since they'll have a full range of construction in them--from excavation to foundation to framing to drywall to final trim.

Avoid the following types of projects:

• Very small projects--unit price calculations don't work as well for them.
• Specialty projects such as a re-roofing or a deck project--although you can use them to calibrate unit prices for the specific types of work involved in them.
• Projects not typical of the kind of work you normally do.
• Projects where everything went completely wrong--or for that matter, projects where everything went completely right!

What you need from the project

The more accurate your actual cost data is, the more accurate you'll be able to make the BidMagic construction estimating software program. So be sure to go back through your records and gather the best job cost information that you have for each project you'll use for calibration.

The following kinds of information will be useful:

• Job Cost reports or other project cost breakdowns.
• The original estimate--preferably broken down into cost categories.
• Invoices for materials and subcontractor costs.
• Payroll records or other information about labor costs.
• Checkbooks or other financial records.

How many Projects to Use

If you have good, detailed job cost information about a job you've already finished, you can calibrate BidMagic using just one project--although you'll still be more accurate if you use more than one.

If you are working with 'fuzzy' cost data, you should definitely use several projects to calibrate the BidMagic estimating software.

If you do a wide range of project types, you may want to create several different estimating templates--for example, a 'high end' template and a 'low end' template--to match the cost of the different types of projects that you do.