Quick and Accurate Budget Letters

[martint]

I work for a small general contractor who does 85% of his volume in residential construction. Which would include small jobs to large whole house remodels including additions. I'm a recent hire as the only estimator and project manager 2nd only to the owner. He doesn't do any estimating but we collaborate on my finished estimate to tweek any pricing. His annual volume is approximately $750,000. My estimates are much more detailed oriented than my predecessor which the owner loves, however that kind of detail takes time and the owner feels he is losing work as his free proposals are not produced fast enough. Rather than a full blown proposal I downsized it to a Budget Letter that provides a range of projected construction costs, if the customer finds the documented "range" within his budget we develop the proposal/contract.
​I produced these letters within 7 -10days. He'd like to see the turnover happen even faster....any suggestions? My thought is the faster you go the greater the loss when it comes to estimating. I'm trying to get him to see the bigger picture but he just wants to go go go.

[Jason Laws]

While I certainly can not relate to the volume that the owner is doing, I can relate to trying to get my free estimates back quicker. But I still haven't found a way to do it quicker, while being very accurate. I don't think that I have ever given a ballpark estimate, which is what I would have to do to be very quick. I am sure that the jobs going on at your company are much bigger than mine and have much more detail....but why sacrifice quality for speed? Maybe he just needs to be thankful for an accurate estimator.

Just today, an estimate for a large project was accepted, that took me some time to do - what if I just guessed at some of it or all of it? You either don't get the job because you were too high or you get the job because you were too cheap and you end up doing it for free. I have to be accurate or I will be out of business quick.

Just a thought from a one man company.....

[m beezo]

Let me give you an example of why you should not rush estimate numbers off to your customers. Actually it was probably the rush and the death of my dad that affected my thinking.

I have a job that I had looked at and I had told the homeowner that I would have the bid to her by Wednesday by email as she requested. So Wed afternoon they take my dad to hospice so I send her a quick email telling my situation and saying the bid would be delayed. 2 days after he passes I get an email from her asking if I could get her a bid before too long even with the situation. About an hour before I am ready to make a 5 hour drive to go to the funeral the next day I decide I can send it out while I wait until we are ready to leave. I type it up and send it out. Did not proof read it as I usually do.

2 days later I get a message saying the job is mine and that she is very happy with the price. I don't think too much about it until I get home about 4 days later and look at the computer. Instead of the job being sold at $1750 I typed in $750. I spoke to her about it and she said her closest next bid was $1500 would I consider doing it for that since she was pretty sure the $750 was not a realistic figure. I said yes and sighed a big sigh of relief that I was not loosing so much money for the job.

[Remodelmaxbill]

I have been tracking all the articles about 'free estimates'. The one's that say no free estimates actually do what you are doing. They give a small range of price attached to a scope of work. If the customer likes this, and them, then they develop a full estimate and design for a fee. In this way the customer cannot price shop them and steal the design. A 'small range in price' is still an estimate, but if accepted, you then have the ability to flesh out a detailed estimate with the customer's input. As we all know the customer changes their minds all the time and remodelers hate to included budget items in the estimate. This way you are getting paid to help the customer through the product selection process and nail down a final price.