Every contractor has to estimate — that’s just a fact. But not that many contractors understand how easy, accurate and efficient unit cost estimating is. The three articles below will open your eyes to why unit cost estimating should be your first choice — actually, your only choice!
The remodeling and rehabilitation industry does not have a set of widely known economic guidelines. This is unfortunate because failure to recognize and understand the economic facts of life inevitably leads to failure in business. There are a number of basic economic...
"Guesstimate" Method Many old-timers in the business use this system, which is based on the estimator's knowledge and experience without any calculations except very basic measurements, at most. By this method an addition would be figured by square feet, perhaps $70...
Before beginning an estimate, you should make a thorough inspection of the property, which means going through all areas that might be affected by the remodeling at least twice. The purpose of the second trip is to help you relate the causes and effects of conditions...
During a recent visit to Florida, I had the opportunity to spend a day at Disney World. I was astounded by the admission price! Shortly after my visit I had the opportunity to visit with a friend who once worked in marketing for Disney. I felt I had to ask how the...
Total Job Cost+Overhead+Profit=Price Once all of the factors involved in the equation required to determine the Selling Price have been determined, contractors can understand the term Mark-up and its use in the Estimating process. When contractors have identified...
Profit is the just reward for the effort and risk the contractor undertakes to produce the job. As contractors we are often buried in work to the extent that often there is no realization of what is happening in the outside world, especially when it comes to what kind...
Overhead is the sum total of the expenses required to operate a business other than job costs. Identifying Overhead Overhead is the sum total of the on-going costs associated with being in business, these are items which typically are not directly related to any...
Job Cost is the sum total of several broad categories of expenses which can be directly related to each individual project. Identifying Job Costs: 1) Labor: the contractor's cost for compensating hourly employees which includes both the hourly wage of the particular...
Let's start with a review of grammar. In reality, the numbers we supply to the prospect relating to the project in which they have indicated interest have no resemblance to what Funk and Wagnalls Standard Desk Dictionary defines as an estimate: estimate-n, 1) a rough...
The father of the remodeling industry was the Tin Man. This hardy individual traveled far and wide selling primarily exterior products; siding, storm windows, roofing, etc. Those not familiar with the Tin Man may rent the movie by the same name. This entertaining and...
Handyman Sample Chapters
The Handyman Business has become one the fastest growing segments of the remodeling industry in the last few years. Below are links to six chapters from a ‘book in progress’ by Walter Stoeppelwerth about getting into the handyman business. We plan to add more chapters from time to time, so check back often!
Walt Stoeppelwerth has been popularizing the Lead Carpenter Concept for many years through his articles and seminars. Below are some basic guidelines to implementing the Lead Carpenter Concept within your own organization.
Lead Carpenter Concept Overview
Advantages of the Lead Carpenter Concept
Common Obstacles to the Lead Carpenter Concept
Qualifications of a Lead Carpenter
Job Description for the Lead Carpenter
Job Description for the Production Manager
Bonus Plan for the Lead Carpenter
Tricks of the Trade
Walt Stoeppelwerth views on remodeling.
Tips and Tricks For Better Estimating
The material presented here is in part excerpted from the book: IF I SELL YOU I HAVE A JOB. IF I SERVE YOU I CREATE A CAREER! by Michael S. Gorman
A resident of Colorado, Michael Gorman is the President of a successful consulting company specializing in small business with a focus on remodeling. For many years, Mike was president of his own residential and commercial remodeling firm, and was named among the Big 50 by Remodeling magazine for his outstanding achievements in the industry.
Mike has had over 25 years of experience in all phases of construction including sales, estimating, planning, production and business management. His diverse experience in remodeling and his business skill have made him a leader in the field.
Mike has received many awards during his career and is listed in the Who’s Who of Emerging Business Leaders. His remodeling work has been showcased by several prominent trade publications, and he has been recognized for his participation in the National Association of the Remodeling Industry (NARI), having held national, regional, and local positions.
This book, specifically designed for use as a Consultive Sales process for builders and remodelers, is available from HomeTech Publishing.