Michael Savage
ArboristSite Lurker
Let me start by saying I have been operating for several years in a role where this was 99% of my focus.
In my experience there is no way a fixed formula is going to deliver consistent results, there are many factors involved, the first being able to read the client. Are they tyre kickers? only care about the cheapest price ? Are they educated and know the difference and want a quality service/product delivered?
The second is inescapable, you must have extensive practical experience in the task you are attempting to estimate, you need to be able to anticipate likley outcomes, potential problems and methods that will or should be employed to complete the task at hand and allow for each of those variables, you then need to have an intimate understanding of your staffs operational capacity and allow for that also, for example crew B. might be able to do the job in 3 hours while crew A. might do it in 4.5 hrs.
The third is a working knowledge of baseline figures for your company, ie. what does it cost us to have the required staff and equipment on site for the duration of the job and the time it will take to get there, you then must incorporate a margin of profit, while considering the risk involved in the task at hand, exposure to risk will always be reflected in the price, there are some other considerations depending on the size of the company, that being your (the estimator) costs (veichle, stationary, mobile, web,fuel and your wage) and admin at the office (who will likley spend a certian amount of time preparing the associated paperwork with logging the job, booking the job and sending invoices and any other company overheads (if you are successful).
The fourth is the site itself, no 2 sites are alike and each represents unique challenges, and so the management of the site and the way debris generated in the course of the job will be handled must be taken into consideration as well as any special requirements be that laying protective matting to protect turf grass or similar site requirements.
How will your competitors undertake the work ? and how do you anticipate they will charge for their services ? do they compete on price or quality ?
So as you can see its a very complex process that involves numerous factors not all of witch are mentioned here that must be considered in determining your bid for the work..
So essentially there is no substitute for experience, people skills and an ability to consider all the factors involved in making your decision and determining a suitable costing for the work at hand.
Sounds like your on the trolley mate, if you have the experience in doing the work behind you, its just a matter of finding your feet and coming to understand the background costs and work within those figures.
Being able to accurately predict the time is of paramount importance and nothing will bring you undone faster than an inability to correctly allocate a time window for a particular task or job, with some margin for variance, and while still being competitive in the market.
-Mike
In my experience there is no way a fixed formula is going to deliver consistent results, there are many factors involved, the first being able to read the client. Are they tyre kickers? only care about the cheapest price ? Are they educated and know the difference and want a quality service/product delivered?
The second is inescapable, you must have extensive practical experience in the task you are attempting to estimate, you need to be able to anticipate likley outcomes, potential problems and methods that will or should be employed to complete the task at hand and allow for each of those variables, you then need to have an intimate understanding of your staffs operational capacity and allow for that also, for example crew B. might be able to do the job in 3 hours while crew A. might do it in 4.5 hrs.
The third is a working knowledge of baseline figures for your company, ie. what does it cost us to have the required staff and equipment on site for the duration of the job and the time it will take to get there, you then must incorporate a margin of profit, while considering the risk involved in the task at hand, exposure to risk will always be reflected in the price, there are some other considerations depending on the size of the company, that being your (the estimator) costs (veichle, stationary, mobile, web,fuel and your wage) and admin at the office (who will likley spend a certian amount of time preparing the associated paperwork with logging the job, booking the job and sending invoices and any other company overheads (if you are successful).
The fourth is the site itself, no 2 sites are alike and each represents unique challenges, and so the management of the site and the way debris generated in the course of the job will be handled must be taken into consideration as well as any special requirements be that laying protective matting to protect turf grass or similar site requirements.
How will your competitors undertake the work ? and how do you anticipate they will charge for their services ? do they compete on price or quality ?
So as you can see its a very complex process that involves numerous factors not all of witch are mentioned here that must be considered in determining your bid for the work..
So essentially there is no substitute for experience, people skills and an ability to consider all the factors involved in making your decision and determining a suitable costing for the work at hand.
Sounds like your on the trolley mate, if you have the experience in doing the work behind you, its just a matter of finding your feet and coming to understand the background costs and work within those figures.
Being able to accurately predict the time is of paramount importance and nothing will bring you undone faster than an inability to correctly allocate a time window for a particular task or job, with some margin for variance, and while still being competitive in the market.
-Mike
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