Checking Unit Price Accuracy

Problem

They are nervous about unit price accuracy. How to calibrate, gain control of program. Doesn't like/ scared of 'black box' approach used in BidMagic construction estimating software.

Compare to their costs/ estimating system. How to get confidence it will be accurate

Diagnosis

users or possible purchasers who are scared that it won't be accurate will need some confidence-building

Solution

1. Many people are nervous about 'letting go' of their own system and using someone else's numbers. THIS IS NORMAL. It helps to validate and normalize this fear for them. Then it's just something to deal with.
2. 'Calibrating' against old jobs really helps. You can learn the program without risking $$. Once you've adjusted so it hits old jobs close, it will feel safer (and BE safer) for new jobs.
3. Many users get 'over the hump' and report early accuracy within 5%, and within 2% reliably once they are experienced. It's worth it!!!
4. Often dissecting some unit prices helps. The takeoff module is good for this since it shows the exact materials and waste for each item.
5. For custom work, remember you can always add in any adjustments or weird items by hand. Or create unit prices for them if they are done often.
6. This problem is a problem with any estimator or estimating book.
7. Fortunately by estimating more quickly you can do more estimates, which means you can add a generous contingency % since you don't have to get such a high percentage of jobs. In the long run that will more than make up for any possible errors because of the 'black box' approach.

NOTE-- Here's a link for more information about calibrating estimating software. It applies to BidMagic, and our other estimating programs.

Comments

Entered 2/29/96 by Dennis. Updated 10/18/2010.

NOTE-- We retired BidMagic estimating software back in 2002, and replaced with Goldenseal-- which is integrated estimating software and project management software (plus optional accounting software).