How BidMagic Calculates Estimates

The BidMagic bidding software uses a unit price approach to estimating calculations. Each line item in Specifications represents a specific cost that will be added to the bid.

When you click the Calculator button or choose Calculate from the Bid menu, The BidMagic estimating software follows these basic steps to calculate the cost of the project:

1. BidMagic first goes through each card in Specifications and checks the bid type specified at top center (labor and materials, sub and materials, subcontracted or flat fee).
2. Unless the category is calculated on a flat fee basis, it then looks at each construction line item on the Specs card.
3. The labor cost per unit is calculated by multiplying the skilled wage rate (from Basic Dimensions) by the number of skilled hours per unit (from the Unit Price Editor). The result is added to the unskilled wage rate multiplied by the number of unskilled hours per unit.
4. The total labor cost for the line item is calculated by multiplying the labor cost per unit by the number of construction units for the line item. NOTE: If the item has a labor modifier, that will also be applied.
5. The total material cost for the line item is calculated by multiplying the material cost per unit (from the Unit Price Editor) by the number of construction units for the line item. NOTE: If the item has a material modifier, that will also be applied.
6. Once steps 3, 4 and 5 are completed for each line item, the total for the card is assigned to Labor, Materials or Subcontractors depending on the calculation method used for the card.
7. If you are using any Fudge factors, they'll be added to (or subtracted from) the totals.
8. If you are rough estimating, the Locality factor and Quality factor (with the quality adjustment for that construction category) will also be applied to the total. NOTE: These two factors are not applied to cards using a flat fee. Fudge factors, Overhead and other percentages are applied to flat fee cards.
9. Once steps 1 through 8 have been applied to each card in Specifications, Hard Costs will be completely calculated.
10. Soft Costs (except sales tax and broker commission) and Contingencies are calculated.
11. Overhead and net profit are calculated, based on hard costs, hard and soft costs, or all costs except sales tax (depending on the choice made on the Overhead card).
12. Broker or salesperson commission is computed on top of all costs except sales tax. Then sales tax is added, as a percentage of either hard costs, or all costs (depending on the choice made on the Soft Costs card).
13. If Show soft costs is turned on, the Soft Costs will be itemized at the bottom of the estimate on the Bottom Line card. Otherwise they will be 'distributed' through the hard costs.
14. The grand total is calculated and displayed on the Bottom Line card.
15. A project completion date and the cost per square foot is calculated. All calculations are then completed.

NOTE: If your costs have changed by more than 10%, you will be alerted to calculate once again for a more accurate total. This is because some prices (such as building permits) are based on the overall project cost or the project duration, and the most recent values are used for them (see pages 171-172).