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WWW.ONCENTER.COM OV ERCO MIN G T HE PIT FA LL S O F EST IM AT IN G 2 Page E ve n with a bullish a nd booming ma r ket, bidding lots of jobs doe s not ne c e s s a r ily gua ra nte e a ste ady f low of p rof itable wor k . In fac t, r ushe d e stimate s c ould put your f ir m at r isk if you fail to e nsure ac curacy. You don't have to bid on eve r y job in your loc al pla n room. Winning jobs you c a n't c omplete in a p rofe s sional ma nne r c ould be just a s c ostly - - to your re putation a nd bot tom line. For exa mple, it c a n be a re al ga mble to p re cisely p roje c t c osts on a labor-inte nsive p roje c t. Whe n give n le s s tha n ade quate pla ns a nd spe c s a nd a limite d time to bid, e stimator s may tr y to gue s s inste ad of ac curately p re dic t how much labor will c ost to c omplete a n e ntire proje c t. Not sur p r isingly, this c a n p roduc e le s s tha n stella r re sults, le aving labor c osts a big que stion ma r k . T he re is r isk whe n your f ir m doe s not a s se s s the full sc ope a nd re quire me nts of a p roje c t or doe sn't take the p rope r a mount time to p re - pa re the bid in a p rofe s sional ma nne r. Nobody wa nts to expose their c ompa ny to unne c e s s a r y r isk by failing to p re pa re a n ac curate e stimate. T his c a n le ave you vulne rable whe n it c ome s to e nsur ing qualit y wor k a nd p rof itabilit y. Q ua ntitie s must be c or re c tly c ounte d, labor rate s che cke d, a nd cha nge orde r s ha ndle d - - eve n whe n you only have minute s to spa re before the bid is due. Your should str ive to make sure eve r y bid awa rde d is ac curate, not ove rcha rge d, or low-balle d. Risk c a n oc cur if a n e stimate doe s not c ove r the c omplete sc ope a nd spe c of wor k – whethe r it is re ba r, mor ta r, or s a nd. C onside r this stunning fac t: Industr y inside r G e orge He dley e stimate s roughly 8 0 pe rc e nt of c onstr uc tion owne r s don't k now the tr ue c ost of doing busine s s. Like a ny p rofe s sion, e stimating is pe r fe c te d through expe r ie nc e, prac tic e, a nd intuition. It is cr itic al to not ove r look key fac tor s whe n e nsur ing bid ac curacy. For exa mple, make sure the f inal bid take s into ac c ount: • A ll of the e quipme nt re quire d • W he re the dir t will go onc e it is exc avate d • L ong le ad-time s for c e r tain ite ms that might impac t de adline s • S pe cial s afet y r ule s that may apply in the state whe re you a re wor k ing • W hethe r the c onstr uc tion site is on a hill, in a r ural a re a , or in a cit y with lit tle room to wor k Contrac tor s ne e d to be c a reful to str ike the r ight bala nc e bet we e n bidding a nd winning e nough wor k . You don't wa nt to bid a nd win so ma ny jobs that you c a n't prope r ly ma nage a nd delive r on the wor k . Inste ad, you should focus on sele c ting the r ight wor k to bid a nd maintain a prof itable busine s s. 1. Pi t f a ll: Ru s hing to Bid M ore Wor k "Roughly 80 percent of construction owners don't know the true cost of doing business." Georde Hedley Construction Business Coach Risk: Sacrificing Accuracy Solution: Practice Patience and Double-Check Your Bid

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