How we actually price a job
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Key Takeaways
Implement a thorough pre-construction process to define scope, manage expectations, and reduce project risks, aiming for less than a 5% contingency line item by construction start.
Utilize detailed spreadsheets (15,000-18,000 line items) and on-screen takeoff software to build estimates systematically, incorporating historical data and project comparisons.
Actively communicate the entire construction process to clients, providing clear timelines and progress updates to manage anxiety and prevent delays.
Draft clear scopes of work for each trade, requesting explicit exclusions and potential value engineering opportunities upfront to prevent budget overruns and misunderstandings.
Account for scope gaps and quality differences by building in additional fees for self-performance or enhanced management to meet client expectations beyond a subcontractor's standard.
Prioritize client fit by aligning your business's values and service level with what clients genuinely seek, rather than trying to convince them to adopt your standards.
Establish clear non-negotiables in your process (e.g., site protection, management fees, material procurement) and communicate them early to protect your reputation and ensure project success.
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