By Katie Conroy
If you're a general contractor, you know how important accurate estimates are.
Estimates let your clients know what to expect, so they can move ahead with a job and book your services with confidence.
The need for accurate estimates is more important than ever in Pittsburgh, where a hot property market means new homeowners are eagerly buying—and then often renovating—houses. Find out how to simplify the process of making estimates below.
Factor in current risks
Estimates are important. The problem is that it's harder than ever to make accurate estimates thanks to changes in the global supply chain and in labor market conditions. Keep an eye on both of these points, which can impact costs. For example, KPMG flags common supply chain issues like increased freight costs and driver shortages. This can mean you have to pay more to get materials delivered to you or that they'll arrive later than expected.
Track fluctuations in material prices
Supply chain issues are a factor in increasing materials costs.
However, inflation is another problem. Home projects are becoming more pricey overall, thanks to certain rising costs. Basic items you probably use regularly for your general contracting work, like concrete, gypsum, lumber, steel, and paint, have become more expensive. This is something to consider when creating estimates. You may also want to explain this to potential clients.
Use software to make estimates easier
If you're not great with numbers, you'll want to invest in a software solution that takes care of creating estimates for you. Construction Coverage provides a roundup of popular options, including Stack, Planswift, and Square Takeoff. They will calculate and create professional-looking estimates. Keep in mind that you can write off the software purchase for your taxes as a business expense, so make sure to keep the receipt when you buy it.
Connect with other contractors to compare bids
Even if you're tracking market developments and using a software tool, knowing exactly what to bid on a project can be tough. Consulting others about how they conduct estimates and forecast revenue can help.
For example, you can connect with Pittsburgh contractors via the Across North Hills local contractor's guide. This is also a chance to talk about how their business is doing and to track local trends, which can help you predict business sales.
Create templates you can reuse
Once you have an estimate template that works for you, reuse it.
You can always tweak templates in an editable format like Excel and then transform them into PDFs using a free online tool like ILovePDF.com. If you have a PDF template that you want to edit, you can convert it to a different file format and then change it. This will save you time and stress going forward. There are also paid and free templates you can find online.
Present your estimates professionally
You don't just want your estimate to be accurate. You also want them to look great. Make sure your estimates are professional-looking.
One way to take them to the next level is to add a logo. If you don't already have a business logo, consider getting a graphic designer to create one for you. Alternatively, you can save money and make your own logo for less with an online logo creator tool. It's free and easy to use.
The general contracting field is booming and shows no signs of slowing down. If you're a general contractor in the Pittsburgh area, this is a great time to get to know others in your field and talk shop. You can also make the most of the current demand with accurate, professional-looking templates. Follow the tips above to get started.
Ready to connect with Pittsburgh's contractor community? Join Across North Hills for free and be part of the local contracting community.
Katie Conroy is an Across North Hills contributing writer.
