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Estimating Fixed Costs

NOTE-- In 2000 we introduced Goldenseal construction estimating software, and retired both our older computer software programs (MacNail and BidMagic). There are still die-hard users of both programs, so we keep the manuals online for their use! Goldenseal is an integrated program that also includes accounting, job costing and contract writing features.

Estimate Fixed Costs

Since you will normally use the same fixed costs on every job you do, we'll start by customizing one of MacNail's existing estimators (the MacNail Estimator) to include your actual operating costs.

To customize an estimator:
1. Double-click the MacNail folder icon to open it.
2. Double-click the MacNail Manager icon to open it. This will bring up a dialog box.
3. Click the Estimates button in the dialog box.
4. Click OK. Estimating commands will be added to the menu bar.
5. Choose *New Estimate from the FILE menu. This will bring up a dialog box.
6. Click the Change an Estimator button.
7. Double-click on MacNail Estimator in the scrolling list of estimators.
8. The blank estimator will open--it may take a few minutes, depending on the speed of your computer.

Once the MacNail Estimator is open, choose *Fixed Costs from the MACNAIL menu. This is where you will enter your basic operating costs.

1. Type in your local wage rates for the average subcontractor, average carpenter, average unskilled worker and supervisor. Use the actual amount spent on an 'average' employee in each category--include FICA, Workman's Compensation, unemployment, disability, and fringe benefits.
2. Type in average wage rates for subcontractor trades--plumbing, electric, masonry, and so on, as listed. There is also a space for an average professional's billing rate (use an architect's billable hourly rate). If you don't have actual wage rates available, enter a guess--you can always come back and change it later.
3. Type a 1 for each fudge factor (overall, labor, materials, subcontractors, locality, quality).
4. Type in the sales tax rate for labor (left cell), materials (center cell), and subcontractors (right cell). If you don't charge sales tax, enter 0 (zero).
5. Type in the percentages for overhead, profit and contingencies which you use in your business. 10-20% overhead, 5-10% profit, and 2-6% contingencies are reasonable figures. The sum of these three items can be lower than your normal 'markup', since some items normally included in 'markup' are itemized separately, in the MacNail construction estimating software.

When fixed costs have been entered, choose Save from the FILE menu. It will permanently add your operating costs to this estimator, so you won't have to type them in again the next time you use the MacNail Estimator.

Now you are ready to open and begin an actual estimate.