I continue this blog series to break a decades-long silence in the construction industry -the nine true secrets of successful estimates.
SIXTH SECRET
The sixth secret is subcontractor quotes. This has components of all the other secrets. A subcontractor quote contains labor, material, equipment, indirect costs and profit, just like any other estimate. It is dependent upon having the quantities, labor hours, hourly rate, etc., prepared in a reliable manner just like any other part of an estimate. The amount of the subcontractor quote is also dependent upon the payment terms like the materials being purchased on the project.
Will the subcontractor quotes/costs in the estimate be perfect? Based on the above answers – “Not!” However, they will be more reliable by taking these factors into consideration. No one company has a lock on this secret; all of the successful firms know one of the secrets to a successful project is having a reliable determination made of the subcontractor quotes/costs required to perform the work.
Don’t miss out on the remaining secrets! Check back soon!
