Estimating software is critical to accurately price big construction jobs, but when you’re a small subcontractor, it’s not always necessary. Here are 5 key considerations to account for when estimating a construction job without advanced software, to keep you profitable:
1. Labor Costs
- Are you paying workers comp or are they covered?
- Do you have employees or contractors? If they are employees, you must consider superannuation, long service leave, leave loading. Read more on the topic here.
- Travel, training, unproductive hours – travelling can be a nightmare for you if it’s on the clock. Know the consequences when pricing the job, and reflect it.
- Recruitment – Do you spend hundreds and thousands of dollars with expensive labor hire agencies and job boards that guarantee no success?
2. Insurance & Licensing
- Trade insurance – it’s expensive, so calculate your insurance costs and attribute them to the job. Here’s a simple example:
I am quoting a job that will engage 50% of my resources and take 2 months to complete and I pay $12,000 per year on insurances.
$12,000*50% = $6,000
($6,000/12 months)*2 months =$1,000
- Trade Licensing – Consider the costs of maintaining all your licenses on an annual basis and apply the same rules as the insurance example above.
3. Vehicle Costs
- Fuel – How many tanks of fuel across all vehicles does it take to get to the job?
- Tolls – They add up so account for them every day.
- Parking – Is parking available on the job or will you need to pay? These costs vary dramatically depending on where you are so readjust this for every job.
4. Rent & Equipment:
- Are you renting an office space to run your business? These are costs that must be considered
- Tools, repairs, skip hires? Anything specific to the job should be accounted for.
5. The weather
Buffer for the rain gods!
At ConX, we know how hard it is to run a business. We’ll save you the headache of recruiting good staff. When you post a job on ConX, we’ll send you a list of suitable and available workers and only charge you when you successfully hire a winner.