Suppliers understand that contractors take their payments in installments, however, if a contractor owes them money, they may not put the materials for another job on the contractors account. They will require that the outstanding balance be paid before placing another order.
This does not happen often however, because contractors know the market value and are usually right on target when they draw up an estimate. The payments that they get from their customers are set when the contract is signed.
A contractor must follow a guideline containing six different steps to create an accurate estimate. These guidelines were created to avoid any hidden costs. It is not difficult, however you do have to be accurate. Once you have the estimate, and all factors have been considered, you are ready to proceed. Creating an accurate estimate relies on following procedures.
The first step in creating an accurate estimate is to figure all of the materials that you will need. This includes all floors, doors, windows, roofing material, plumbing and electrical needs. It is important to remember to use quality materials as it will show in the end results.
The next step is to decide how many contractors you want to outsource the work to. You can either do the work yourself or you can hire one or two contractors to complete the work faster. If the job is not very big, you may want to consider doing it yourself to avoid additional costs.
If you choose to use other contractors, it is important to include the amount the contractors will be paid into the estimate. It will also be necessary to research the price of the material with several supplier to get the best rate. It is also necessary to take into account the fees that are associated with building such as all fee and legal expenses. Permit and architectural fees are often overlooked and can be a source of disagreement after the contract is signed.
When you estimate a construction job, you are not only looking out for your customer, you are also looking out for yourself. We live in a world where contracts are legal and binding. If you omit something and try to add it after the contract is signed, you may be in for a legal battle.
in the long run, estimating will save you time, money, and aggravation.
Nick Hurd is the developer of LiteningFast Estimating. LiteningFast is an estimating program that helps you estimate faster, easier and more accurately. It’s integrated with QuickBooks to provide job cost.