Job Costs Feedback

Feeding Back Job Cost Information

If you use a Job Cost Accounting program such as MacNail Accounting, you can 'feed back' your actual construction costs to the BidMagic construction estimating software program, and increase the accuracy of future estimates.

Using MacNail Customizing

MacNail Customizing includes an automatic job cost feedback system. It uses job cost information from MacNail Accounting, adjusting unit prices in the MacNail Price Master based on the ratio between the estimated and actual costs.

This price information can be brought into BidMagic with the Import Unit Prices command (see page 396).
For more information about using MacNail Customizing to feed back job costs, see the MacNail Customizing manual.

Adjusting Unit Prices on your Own

You can use any kind of job cost data to adjust BidMagic unit prices on your own. To do so, follow these steps:

1. Create a final bid using BidMagic.
2. Track 'estimated versus actual' costs as closely as you can, using a spreadsheet or any accounting program that can handle job costs. Try to break costs down into labor, material and subcontractor costs, and also break costs down into the construction category system you used in the BidMagic bid.
3. When the project is finished, look at the ratio between the 'estimated' cost and the 'actual' cost for each category.

HINT: If you've job costed several projects, take an average of the job cost ratios for all the projects, and use that instead of the ratios from just one job.

If the actual cost was significantly greater than the estimated cost in a category, adjust its unit prices upwards. If the actual cost was lower than the estimated cost, adjust its unit prices downwards.

The amount of adjustment to make is a matter of judgement. If you feel the project prices are completely fair and accurate, adjust unit prices by the actual/estimated ratio from your job costing. Otherwise it's a good idea to adjust prices by a lesser amount so you gradually 'ease' into the correct prices.