Beth n Rod 1,279 Report post Posted September 8, 2005 09/7/05 19:26:28 Russell_C Logs in [172.162.130.219] 09/7/05 19:26:35 Russell_C Logs Out 09/7/05 19:27:07 Russell_C Logs in [172.162.130.219] 09/7/05 19:37:29 Russell_C: Hello and Welcome to Wood Chat! My name is Russell Cissell and I will be your host this evening. In lats weeks Wood Chat we spoke about how to measure square footage. 09/7/05 19:38:41 Russell_C: This week we will discuss how to use square footage to determin material usage and formulate a bid. 09/7/05 19:40:30 Russell_C: We will be getting started at 9:00 eastern and the discussion will last roughly one hour. There will be time after the discussion for a general question answer session, please save any off topic questions for that time. 09/7/05 19:41:24 Russell_C: Please feel free to take full advantage of the private message function if you see someone you would like to say hello to or if you have a question and can not wait until the end of the discussion. 09/7/05 19:42:13 Russell_C: To use the private message function simply click on the persons name you would like to contact and type your message in the window that pops up. 09/7/05 19:43:11 Russell_C: I am happy to answer questions via private message any time during the discussion but only as time allows. 09/7/05 20:02:15 Russell_C: Ok, lets get started 09/7/05 20:02:57 Russell_C: in last weeks discussion we were talking about a 6,000 square foot cedar home restoration job. 09/7/05 20:04:29 Russell_C: using this figure we were able to determine what our material usage would be and also estimate what our time expenditure would be. 09/7/05 20:06:21 Russell_C: Using our figure of 6000 square feet we estimated $1,375.00 for total material costs and 92 man hours to complete the work. With those two figures it is now possible to formulate a bid. 09/7/05 20:07:14 Russell_C: Needless to say the "bid" is a very important step in any job. 09/7/05 20:07:42 Russell_C: Bid to high and someone else will get the job. 09/7/05 20:08:01 Russell_C: Bid to low and you will wish you wouldn't have gotten the job. 09/7/05 20:09:31 Russell_C: There are as many books written on the subject as there are failed service businesses. (that is colorful language and not substantiated by fact) 09/7/05 20:10:42 Russell_C: The truth is there are a number of was to approach bidding. I'm personally still undecided as to whether it is a skill or an art. 09/7/05 20:11:50 Russell_C: In the next housr I will lecture about a few of the more common bidding practices in this industry. 09/7/05 20:12:59 Russell_C: I can not say that any one is better than the next but each may hold it's own advantage. 09/7/05 20:13:50 Russell_C: The first bidding style I will talk about is unfortunately the most common. 09/7/05 20:15:50 Russell_C: This style is called the w.a.g. The advantage is it is quick! You don't waste a bunch of time with the measuring and other non sense. You walk right up, look at the job and make a Wild --- Guess. . .I'll do that deck for $1,000.00! 09/7/05 20:17:51 Russell_C: The more seasoned professional will have a good feel for the time it will take and the material he will use so his bid will be more accurate but it is still a guess. 09/7/05 20:18:41 Russell_C: The new guy most often chooses this method because they simply know no other way. 09/7/05 20:19:22 Russell_C: The disadvantages. . . 09/7/05 20:20:39 Russell_C: can be very inaccurate, you do not collect data on square footage and material usage rates, you risk running short on material costing preciaous time away from the job. 09/7/05 20:21:45 Russell_C: The next style that I aqm familiar with is often called Estimating. 09/7/05 20:23:05 Russell_C: Estimating is a very precise method of applying set figures and formulas to come to the final bid price. 09/7/05 20:26:01 Russell_C: For example if you have a business plan you will have an idea of the level of profitability you need to operate at to reach the years goals. 09/7/05 20:26:49 Russell_C: When you look at the data you have collected in the past you will know what material usage is consistant with this type of project. 09/7/05 20:27:10 Russell_C: You will also know the hours required to complete similar jobs in the past. 09/7/05 20:28:42 Russell_C: From this data you will determine a price per square foot you must charge in order to achieve the level of profitability your business plan dictates. 09/7/05 20:30:34 Russell_C: Once you've got your price per square foot you simply multiply that by the total square footage from your measurements. 09/7/05 20:32:23 Russell_C: For example if you know you need to charge $1.50 per square foot for cedar siding and there are 6000 total square feet you would bid $9,000 for the job. 09/7/05 20:34:43 Russell_C: The only disadvantage to this method is that it can take longer and your price per square foot will only be as accurate as the data you collect from prior jobs. 09/7/05 20:37:19 Russell_C: Estimating is sometimes referred to as a Time and Material bid. This is not accurate. 09/7/05 20:38:58 Russell_C: A true Time and Material Bid is yet another seperate method of bidding. The true Time and Material Bid is the safest way for the contractor to go. Unfortunately it is not very common especially when doing residential work. 09/7/05 20:39:43 Low-PSI Logs in [24.254.237.31] 09/7/05 20:40:02 Russell_C: The Time and Material Bid is simply a contract stating that the materials cost $X per unit and your time is billed at $X per hour 09/7/05 20:40:44 Russell_C: You bill them for your hours plus the cost of materials. 09/7/05 20:43:52 Russell_C: This again is very safe for the contractor and also the homeowner providing they hire an experianced contractor who works at a realistic pace 09/7/05 20:44:57 Russell_C: The only down side is that it's too close to having a 9-5 job for some contractors 09/7/05 20:47:30 BethnRod Logs in [4.185.135.87] 09/7/05 20:48:44 BethnRod: hi John 09/7/05 20:49:39 Russell_C: The last method I will talk about this evening is the Sliding Scale 09/7/05 20:49:45 Low-PSI: hi! 09/7/05 20:50:12 Russell_C: This is very similar to Estimating with a variation based on size and total square footage. 09/7/05 20:51:24 Russell_C: In theory if you can do 100 square feet in one hour for $100.00 then you can do 200 in less that two hours because you only had to set up once. 09/7/05 20:51:54 Russell_C: In reality most contractors do not slide that scale until about 1000 square feet. 09/7/05 20:52:57 Russell_C: If you talk with a few seasoned professionals you will find they use a combination of all these methods to sun a successful restoration business. 09/7/05 20:53:35 BethnRod Logs Out 09/7/05 20:53:37 Russell_C: I would like to thank you for joining Wood Chat and I hope to see each of you back here next week. 09/7/05 20:58:53 Russell_C: Bye John! 09/7/05 20:58:59 Low-PSI: Bye 09/7/05 20:59:09 Russell_C Logs Out 09/7/05 20:59:14 Low-PSI Logs Out 09/7/05 21:40:40 scottk Logs in [68.217.218.189] 09/7/05 21:40:45 scottk Logs Out Share this post Link to post Share on other sites
