A plain piece of paper is used by several contractors (or, horror of horrors, on a cocktail napkin!), or special forms used for estimating contract jobs, or even just a document editor like Microsoft Word or OpenOffice Write. There are also cost books that have thousands of prices in them that are used by many contractors to create estimates for their jobs. If you fit this description, then it is possible that you are wasting thousands of dollars yearly.

I have spoken with thousands of contractors during my lifetime and it is evident that estimating in this manner is not the best. The challenge is that it's difficult to spot duplications and missing items in your estimate, if it's more that a couple of dozen items.

I believe that the best way to create your estimates, no matter how you do them, it to do them by, what I call, sections. How the sections are named (tasks, classes, categories) can depend on the person doing the labeling. Sections are basically, a way of organizing the estimates to avoid the likelihood of making an error. Sections are, for example, Site Preparation, Foundations, Framing, Roofing, Electrical, Landscaping, and so on.

The reason this reduces you likelihood of making an error is that every item you add to the estimate is put into a section. Excavating the foundation and filling the excavation with concrete is an item to be sectionalized under 'Foundation'. Including the whole line of different framing options (cost of materials and labor hours) review the framing chapter and also notice the roofing section for roofing items, etc.

So, let's take a look at how this works. To properly set up an estimate, you need to sort the various items into the right sections. In addition, it is wise to find a total for your costs in every area too.

When you've finished the estimate, you now go back and review each section. For a good estimate, look at each section total. Check all the sections, making sure you added nothing twice. While you're looking over your sections, make sure that every task you have to get done is in the right place; e.g., the breaker box is under Wiring. Make sure you haven't omitted items by reviewing each section before you give your potential customer the estimate..

Lists of sections are found at:

www.Estimating a construction project is how a profit is made for the construction company and allowing the company to see how much the project is going to cost them.com/Sections/
You are free to modify this and use it as you will to make it fit your own circumstances.

By the way, if you're not at least using a spreadsheet to prepare your estimates, you should do that as well because a spreadsheet will automatically do your calculations eliminating errors in mathematics in your estimates. Spreadsheet programs are relatively cheap and quick to learn, especially compared to the cost in poor estimates and tedious manual calculations.Take a look at Nick's new book "The Secrets to Making Money On Every Job"… What Every Contractor Needs to Know to Thrive" It's available on Amazon. There is a free section available for reading at estimation for contracting.

The Contractor's Profit System was developed by Nick Hurd. LiteningFast is an estimating program that helps you estimate faster, easier and more accurately. It can also be integrated into QuickBooks in order to provide accurate cost per job.

It was brought to the market in 1994 and today has more than 3,500 users in the United States, Canada, and worldwide.

For further details go to construction estimating. You will be happy you did.