Estimating Fudge Factors

NOTE-- In 2000 we retired MacNail and BidMagic (our previous estimating programs), and replaced them with Goldenseal construction estimating software. There are still die-hard MacNail and BidMagic users, so we keep their manuals online! Goldenseal includes similar estimating software features, plus accounting, job costing and project management. Each Goldenseal estimate includes a single adjustment factor that you can use as a "fudge factor". You can also add adjustment line items, to "tweak" labor, material or subcontractor costs.

Fudge Factors

The different fudge factors allow you to 'fine tune' your estimate price in the MacNail construction estimating software. Leave them set at 1 (one) except:
* To adjust for an unusual job.
* To adjust our stock prices to match your local costs.

Each of the fudge factors is a multiplication factor. For example, setting a fudge to 1.15 will add 15%.

* Labor fudge factor--all prices listed in the Labor column are multiplied by this number when they are summed up in the Specifications level. Use the labor fudge factor to adjust for labor productivity. For example, fudge up for bad weather work, projects in remote areas, projects in highly congested areas, work on older buildings, very innovative or unusual construction methods or small or peculiar jobs. Also, some parts of the country seem to have workers that are more or less highly motivated (or more or less skilled). If labor seems to cost 20% more than our pre-entered prices predict, you can use a labor fudge factor of 1.2 until you have time to adjust the unit prices themselves.

* Material and subcontractor fudge factors--these two factors are similar to the labor fudge factor--they adjust material and subcontractor prices when they are summed up in the Specifications level. For example you can use them to adjust for inflation that has occurred since the last time you updated unit prices.

* Overall fudge factor--this fudge factor can be used to adjust the entire project cost. It is applied only on the Summation level--it will not show up in Specifications or Clearinghouse. You can use this factor to 'hide' overhead and profit in the Specifications level. Set it equal to the 'burden factor' (equal to the total project price divided by the subtotal). Notice that you can also 'hide' overhead and profit by generating a Quick Summary report (see page 129).

NOTE: Use the overall fudge to convert to Canadian currencycurrency, Canadiancurrency, other (or other) other currencies. Type the current cost of an American dollar in your local currency as the value for the fudge. In Canada, this is currently about 1.2. For the numbers in the Clearinghouse level to reflect the currency conversion, set the overall fudge to 1 and type the currency exchange rate into labor fudge, material fudge and subcontractor fudge.