Paying for estimate preperation.

[mdshunk]

This is a different kind of 'paying for an estimate' question.

I don't do much "new work". The new construction that I do is generally specialized or high end homes. Lately, I've been swamped with prints waiting to be bid on. Quite frankly, I'm plenty busy, and don't care whether I win these bids or not, but I want to give some sort of estimate anyhow.

I've been toying with the prospect of using an estimating service. I see ads in trade magazines and get letters from guys that do this. You just mail off your prints, along with what all your overhead %'s, labor, and profit are to be, and they prepare the estimate for you.

Anyone ever used such a service? Did it work out? How are these guys paid? What are the potential pitfalls (other than possibly getting a bid that is way too low)?

[Sparks]

I've haven't been that busy to worry about something like that, good for you, hopefully I will have that problem soon :) I wonder about the differences in rates between locations though. I've purchased some estimating books and even though they have different prices for different areas, they still are way off. Usually they are way too high for my area so I don't use them. I would wonder about their ability to compensate for local markets. Although, if you are that busy you don't have to worry about the bids coming in a little high so in your case it may be a good idea to try them out. Although personally I don't know anyone who uses these services it does sound like it's worth a try for a busy contractor. I'll bet you could tailor these services to work with your current prices and labor hours, I'm sure they would be flexible if they want the business.(ie. our cost on a 200 a panel isn't $550 dollars like some books say it is) Maybe after a few tweaks here and there it would work out well and would be cheaper tha hiring an estimator.

[mdshunk]

I have some of those estimating programs too, but I really don't even care to do the takeoffs. I guess I'll just throw a dart and pick a guy, send him a few sets of plans, and see how it hashes out. I run a small shop, doing service mostly. I've had a history of bidding on almost anything, and most of the contractors remember that for some reason. I've got a set of plans for an auto parts store, a sandwich shop tennant refit, a big house, and a parking garage that are getting a little age on them that I need to do something about. I really don't care if we do any of them, but my "can't say no" personality causes me to have the prints in hand now.

[Sparks]

Can't hurt to try it out and see where the bids come in at. I also do mostly service work and stumble quite a bit on construction type estimates, seems I'm usually too high. I'm still looking for a method that will allow me to get these jobs and still make a profit. Let us all know how it works out and send some of that abundant work out to Buffalo, will ya? :)