Yea it sucks! Granted I have been out of the estimating game for a year or so but not much has changed. Back when I started working for myself, I used to enjoy estimating. From doing the site takeoff to putting the finishing touches on the bid proposal, nothing was better because this is where the money making process really begins. During the estimating process, I knew that I had a decent chance of getting the work. Fast forward a few years. Now estimating sucks. The fulfillment I once had from estimating has been replaced with the feeling of dread knowing that all my hard work doing takeoffs, getting sub proposals, reviewing construction specs will all fall to the wayside. I'm not saying that I used to win every bid I did; but at least I had a shot. Now I see projects I have bid breaking ground and wonder how in the hell can a company put 3-5 pieces of iron on a project with 3-5 guys for 2-3 weeks to do a simple building pad and parking lot. A project that might take a novice earthwork contractor 7-10 days to complete. How can companies make money this way? Here is a similar example:
I bid a small retail parts store. 1.25 acres. No clearing. Minor excavating that consists of excavating 350 cubic yards to subgrade , import fill of 7500 cubic yards and import 2800 tons of baserock. I own all my equipment out right and have very little overhead. I put one dozer and a roller for the earthwork figuring about 1 day to excavate to subgrade and 5 days to complete fill import. Only excavating was to subgrade so I could use the dozer to do this so no need for an excavator. I priced placing and rough grading the base using the same machines for the fill placement with an additional mobilization charge. Fill in this area is not as abundant as it once was so many of the same contractors bidding this project are getting the fill from the same place for the same price as everyone else. I also have my own baserock so I only charged for the trucking and about $2 per ton to cover loading it on the other end. If you compare my base numbers to other numbers, my cost was around $4 per ton, delivered and rough graded. No one can buy base in this area for less than $13 per ton without delivery and placing.
So the job is getting ready to break ground. I called the contractor I placed a bid to so I can get some feedback on my numbers. Out of 7 contractors, I was 4th. They said our quantities were very close but my overall number was too high. Let me get this straight. The base should be the closest number we all would submit since the plans give you the quantity of how much new asphalt will be proposed. So lets assume that we all were within 100 tons of each other for quantity. My total cost for the base was approximately $11,500, not including final grading. Now lets assume that the other guys used the local source for base material. Just for material and trucking, the cost would be around $43,500. That's $30k cheaper than anyone right out the gate. My bid total for the earthwork was around $58000. Take into consideration that we are all paying the same price for fill. Even if the other contractors got the fill for free and I had to pay for it, (only talking about a $15k difference, I would still be several thousands cheaper. It just doesn't add up to me.
So to make a very long, drawn out story short, does anyone know what I am doing wrong? Any help would be greatly appreciated.
I bid a small retail parts store. 1.25 acres. No clearing. Minor excavating that consists of excavating 350 cubic yards to subgrade , import fill of 7500 cubic yards and import 2800 tons of baserock. I own all my equipment out right and have very little overhead. I put one dozer and a roller for the earthwork figuring about 1 day to excavate to subgrade and 5 days to complete fill import. Only excavating was to subgrade so I could use the dozer to do this so no need for an excavator. I priced placing and rough grading the base using the same machines for the fill placement with an additional mobilization charge. Fill in this area is not as abundant as it once was so many of the same contractors bidding this project are getting the fill from the same place for the same price as everyone else. I also have my own baserock so I only charged for the trucking and about $2 per ton to cover loading it on the other end. If you compare my base numbers to other numbers, my cost was around $4 per ton, delivered and rough graded. No one can buy base in this area for less than $13 per ton without delivery and placing.
So the job is getting ready to break ground. I called the contractor I placed a bid to so I can get some feedback on my numbers. Out of 7 contractors, I was 4th. They said our quantities were very close but my overall number was too high. Let me get this straight. The base should be the closest number we all would submit since the plans give you the quantity of how much new asphalt will be proposed. So lets assume that we all were within 100 tons of each other for quantity. My total cost for the base was approximately $11,500, not including final grading. Now lets assume that the other guys used the local source for base material. Just for material and trucking, the cost would be around $43,500. That's $30k cheaper than anyone right out the gate. My bid total for the earthwork was around $58000. Take into consideration that we are all paying the same price for fill. Even if the other contractors got the fill for free and I had to pay for it, (only talking about a $15k difference, I would still be several thousands cheaper. It just doesn't add up to me.
So to make a very long, drawn out story short, does anyone know what I am doing wrong? Any help would be greatly appreciated.
However, it's illusive as time travel how my competition prices some of these jobs and how I land the ones I do.