Estimating Quality Factor

When making a rough construction estimate with the BidMagic construction estimating software program, use the Quality Factor to adjust for different grades of construction.

NOTE: If you are making a Finished Bid, this factor will not be shown on the Basic Costs card.

To change the Quality Factor, click on the house, and drag it left or right.

If the Quality Factor is a positive number, costs will be increased by that percentage. If it is a negative number, costs will be decreased by that percentage.

The Quality factor is 'weighted' for different construction categories, since the cost of some items will increase or decrease more rapidly in different grades of work. For example, demolition doesn't cost that much more on a fancy project, but plumbing fixtures certainly do!

NOTE: Because different projects use different amounts of each type of work, the Quality factor will not adjust overall costs by the exact amount of the factor.

Using the Quality Factor--for 'Quick and Dirty' Estimates

If you are doing extremely quick rough estimates, use the Quality Factor to cover all of the cost differences between different qualities of work. To do so, follow these steps:

1. Use a quality factor equal to the cost ratio between the type of construction you plan to do and theoretical 'average' construction methods. EXAMPLE: If you plan to do work that is about twice as expensive as 'average' construction, use a Quality Factor of 2.
2. Enter operating costs and project dimensions as you normally would.
3. In Specifications, enter 'normal' construction choices even if you are using something different, since the Quality Factor will take care of the cost of fancier materials.

NOTE: If you use a template that is already based on 'normal' construction, you can probably completely avoid checking Specifications.

Since there is no way to precisely describe different qualities of construction, you'll have to use a 'gut feeling' when you decide where to slide the Quality Factor. To calibrate the Quality Factor, run sample estimates on a few projects you've already done, and try a few different quality settings until you hit the actual price accurately (see pages 102-113).

Using the Quality Factor --for More accurate Rough Estimates

For more accurate rough estimates, follow these steps:

1. Use a quality factor that is equal to just the 'intangible' cost difference--the extra time you will take being careful, and the extra cost for better grades of materials. Do not include the price change due to different construction choices that you may make in Specifications. HINT: If you plan to do work that is about twice as expensive as 'average' construction, use a Quality Factor of about 1.2 or 1.3, since most of the cost increase will be handled in Specifications.
2. Enter operating costs and dimensions as you normally would.
3. In Specifications, enter the actual construction choices you plan to use.

EXAMPLE: You may specify tile roofing instead of asphalt shingles, oak trim instead of pine, or ceramic tile floors instead of vinyl.

When using the BidMagic estimating software program to create a more accurate rough estimate, any cost differences due to actual construction differences will be handled in Specifications, so the Quality Factor will only need to handle 'intangibles.' For example, in high end work you'll often use a better grade of the same materials, you'll take more care in fitting and installation, and you'll throw in some detail work that you probably won't take time to itemize in Specs. The Quality Factor will cover these additional costs.

NOTE: When doing a very high-accuracy finished bid, you'll itemize these extra costs with higher unit prices or separate line items covering the extra work, since the Quality Factor will not be available.

Because there is no way to precisely describe the amount of extra 'intangible' cost to include, you'll have to use a 'gut feeling' when you decide where to slide the Quality Factor. To 'calibrate' the Quality Factor, run sample estimates on a few projects you've already done, and try a few different quality settings until you hit the actual price accurately.

WARNING: When you also use Specs to enter 'high end' materials, sliding the Quality Factor all the way to the right definitely puts you into movie star country!