As a residential contractor, getting labor and material costs right in your quotes is key to making a profit. If you mess up either of these, a job that seems like a win can quickly become a loss. Let’s get into how to handle these key cost components in your construction quotes and how construction estimating software can help.
Material Costs
Material costs are usually the biggest part of your quote so you need to get those right. You’ll need to get current prices for everything you’ll need, from lumber to concrete to finishes. Don’t forget the extras that can sneak up on you—delivery fees, waste disposal, taxes and any other surprises.
Personal Story:
“I forgot to add the delivery fee for all the decking materials on one job. It ended up costing more than $500 which I had to eat because it wasn’t in the quote. A simple mistake but an expensive one.”
Pro Tip: Use Bolster’s estimating software to get real-time material prices and have them automatically added to your quote. This tool not only keeps your costs accurate but also accounts for material price fluctuations so you’re always working with the latest numbers.
Labor
Labor estimation can be one of the toughest parts of putting a quote together. It’s not just about knowing your crew’s hourly rate—you need to accurately calculate the man-hours for each task. For bigger projects this includes estimating overtime hours or the cost of hiring subbies for specialized tasks like electrical or plumbing work.
Personal Story:
“I underestimated the labor for a kitchen remodel thinking I could get it done in 80 hours with my crew. We ended up needing 120 hours which really ate into the budget and put us behind schedule.”
Pro Tip: Track labor hours closely using tools like Bolster which allow you to track labor costs in real-time. With this software you can adjust your quote as needed based on actual hours worked rather than rough estimates so your construction quotes reflect actual labor costs.
Variations
No two jobs are the same and labor and material costs can vary greatly depending on the job. For example if you’re working in a remote location you may incur higher transportation or lodging costs for your crew. Working on a high-rise job may require additional safety measures or specialized equipment which should all be factored into your quote.
Example:
“For a remote cabin build I had to factor in extra costs for transporting materials and housing my team for the duration of the job. If I had missed those costs the project would’ve been a financial disaster.”
By considering the full scope of each job and its unique challenges you can adjust your estimates and be prepared for any extras.
How Construction Estimating Software Makes it Easier
Tracking costs manually is time consuming and prone to errors especially as jobs get more complex. This is where construction estimating software like Bolster can save you time and reduce the chance of costly mistakes. Bolster can automate most of the cost calculation process from real-time material pricing to labor tracking and miscellaneous costs like delivery or waste disposal. The software accounts for project specific variations so your quotes stay accurate no matter how complex the job.
Conclusion
To win a quote you need to accurately calculate labor and material costs. Errors in these estimates will eat into your profits or worse lose you money. With the right tools like Bolster’s construction estimating software you can simplify the whole process and have quotes that are detailed, professional and most importantly profitable.
Bolster is designed to help contractors get ahead by automating complex calculations, tracking real-time expenses and preventing the common mistakes that blow your budget out. Get started with Bolster today and take control of your estimating process and give your clients detailed quotes every time.
