Standards are everywhere, in everything. Without them, things like production and maintenance could be a nightmare. That is why we have standard ways of doing x,y, and z.
As a builder, you should have standards as well. The construction industry is full of standards and often, there are several different standards for the same thing. When faced with this, you have to pick one standard that works best for your company and roll with it.
Today we went to a meeting with a medium sized siding/roofing contractor. We have done work for them in the past, doing take-offs for the houses and buildings they get in and have always worked on a per job system.
Today, we entered into a contract project that will take their reoccurring customers and set up a purchase ordering system for them.
This will be somewhat long-term, as there are several customers of theirs that we have to start with.
First, we have to create a database of houses and components per house, then we replicate that for each separate customer. This will allow them to see at a glance the necessary components they need to order per house, or job.
Then we need to make an accessory file for each one, so that they are able to order specific to the job they are working on. i.e., If they add a sun room, or expand the house, etc. These will be made so they can quickly put lists together to create a custom purchase order per job.
Of course, single jobs, custom homes and one time jobs will still be done via PlanSwift, but, the heart of their company will be easier to control, on this end as well as on their end.
An estimate vs. a material take-off. depending on where you are in your project, you may need one over the other. I have heard a lot of people use these terms as though they were the same, but let’s be clear, they are not the same and you will need both.
A material take-off is just that, a list of the materials and their quantities. It may be very generic, like a framing list, or a lumber list, which just lets someone know the pieces of the project.
These lists can be very detailed or very generic. One person may want a list of framing material to send out to local lumber yards so they can compare prices on a complete package. They don’t care what floor, or section the material goes to, they just need to know what the price is going to be to purchase it and they want an apples to apples comparison of prices from several sources. These are a great help for anyone looking to get initial prices on their project.
Depending on what you are doing with your project, you may need several different types of material take-offs. Things like a lumber list, or framing list, to get the needed materials for the skeleton of your project. You may have a separate window/door list, a drywall list, a paint list, flooring list, etc. It can be broken down into as detailed of a list as you may want.
An overall material list for a project is great for pricing and shopping around, but it doesn’t help as well as an estimate when it comes time to actually build the project.
An estimate uses material take-offs. It assigns costs to the material and adds things such as labor costs and overhead costs. Administration costs, such as permits, impact fees, inspection fees, etc. An estimate will often be the first full document to specify what the materials used will be.
One thing to understand about estimates is that it is an estimate, not an exactimate.
I know, sounds sketchy, but if you understand what goes into creating the estimate, you understand why it is named as such.
An estimate projects the material and labor costs of a project based on construction documents and specifications that are available at the time. It says that if you build this building exactly as it is drawn and specified, then these are approximately the prices that are associated with it. However, added to these are projected changes, which occur during most, if not all construction projects. Things like a waste factor are figured in to make sure there is enough money to cover things like damaged lumber, or minor theft. (Someone taking a few 2×4’s may not seem like a big deal, until the framing carpenter has to stop the job to go get them.) With this in mind, the estimate is created with the intent purpose of foretelling what the project may cost in the end and what is going to have to go into it to stay within that price.
Estimates also have the ability to hold the specifications of the project and can become the contract. The estimate stops being an estimate and becomes a new document all unto itself. This is an efficient way of using your estimates, but, that means that your estimate needs to include a lot of information.
Both are needed to start a project off on the right foot. The material take-off can allow you to know what will go into the project regarding specific materials, the estimate is the document that says this is what it will cost to complete the entire project, this is what is supposed to go into the project and this is where it goes in the project.
If you find that you are over budget, there are many ways that you can reduce costs, especially if you are working of a decent estimate from your builder.
Most believe they have to reduce their square footage and nothing else will work. I offer several ways that you can save tens of thousands of dollars on your build, even before you reduce the square footage.
Here is the post so you can see how to save without reduction. Help! It Costs More Than My Budget!
