Estimating mistakes are made during the takeoff process. Bidding mistakes are made in the summarization and submission of the bid. An incomplete estimate and incorrect estimate are not the same. An incomplete estimate has omissions. An incorrect estimate maybe complete, but it could be based on an incorrect labor column and incorrect labor mix.
The following are common mistakes:
Estimating Mistakes
- Missed takeoffs on the drawings
- Failure to highlight items as they are taken off
- Missing documents
- Duplication of items
- Failure to visit the site
- Failure to understand the buildings construction
- Failure to get your material counts to suppliers early.
- Using branch wiring averages
- Using square foot pricing
- Failure to set material and labor units the same – E, C, or M.
- Rushed takeoffs
- Delegating part of the estimate to another
- Assuming
- Disorganized
- Office and co-worker interruptions
- Incorrect material prices
- Failing to ask questions
- Scope of work omissions
- Measurement errors
- Incorrect scales
- Application of incorrect labor column
- Last minute changes
- Project duration misunderstood
- Padding too much for the “What If’s”
- Failure to use a checklist
Bidding Mistakes
- Voluntary price cuts
- Incorrect wage rates
- Ignoring obvious risks
- Labor factors ignored
- Improper bid forms
- Forgetting to sign the bid documents
- Vague scope letter
- Chasing a competitor’s price
- Too much optimism
- Failure to review a previous similar project
- Insufficient overhead & profit
- Unrealistic labor class ratio
Remember, estimating is expensive, poor estimating is costly, and quality estimating is profitable.