Sunday, April 27, 2008

Estimating

Back at home, the office, or the Home Office, it is important to set aside time without disturbance to estimate the project at hand. Careful consideration of all the details is required. An interruption could change a decimal point and make the difference between profit or loss, or getting the job at all.


As many ways as there are to build a house, there could be methods and styles for estimating. Rooted so much in the imagination of the builder and what is translated from that first meeting, I believe the process is highly individual—not only to the person, but to the particular project as well.

Again, I assert I am no more expert at this than 30 years of stumbling and bumbling and a large portfolio of work can allow. Happily, the several workshops attended in that time seem to support my system (or the lack of The One). And, as always, I would be grateful for any and all feedback on the subject.


Depending on the size, sometimes I will start with a map of the project. Home-owner friendly CAD programs, or projects large enough to afford a design, may greet me with drawings, but generally, there is little to work from besides a few pictures, rough measurements, and a concept communicated with little detail (and lots of wishes) from the owner

The map I actually draw is less “what” but “how”. Microsoft Project, or any software that produces a timeline, a path of progress, helps to establish focus and orders the tasks ahead. It also adds veracity to the prediction of “how long?” that immediately follows the answer to “How much?” at the next meeting with the prospective client.


In the “old” days, we sat with pencil and calculator, scratching out guesses of how many sticks, stones and buckets of paint were needed, tossed in a number of weeks, months or days, slapped on a contingency, and with a handshake and a reassuring smile, said it would cost what it costs. Now, the plethora of programs is overwhelming, and as many as I have flirted with, I find I am a dog in Midlife who is still open to others, but keeps returning to modify my earliest tricks, reassured that they are flexible enough to accurately estimate as well as anything can.

Over the years, my Excel spreadsheet has grown from a simple three column tabulation to a five page monster that can track actual costs as well as estimate, comparing successes and red-lining potential failures along the way. It begins with a data sheet (no previous entry is ever deleted—unless discovered to be dismally wrong!), pre-loaded by experience, measured in square feet, running feet, by the hour, or by the ton.

Here, the bulk of the work is estimated, and the potential for a catastrophic mistake looms large. Typically, the whole process, no matter the method, is set up with phases and categories that match the actual steps of building: pre-construction, foundation, framing, mechanicals, finishes. To me, it has always worked best to estimate by herding all the trades and deliveries through my mind in the order that they might appear on the actual site. A good process wants to trigger all those details in the hope that nothing is forgotten.


Once the numbers are tabulated, the information should be packaged into a clear and legible format. Gone are the days of scribbled contracts on the back of a napkin (it did truly happen that way sometimes). Computers allow for no end of pages of drawings, estimates, verbiage of cautions, and references to previous projects and happy customers. A fairly clear line runs between professional presentations and overkill to sell a countertop replacement. No matter how discerning a prospect may be about quality, the dollar, in the end, usually dictates the decision. Accuracy above all is critical, because there are many jobs not worth taking, if items must be clear-cut to win the contract.

In the end, for a remodel especially, somehow it must be communicated to the owner that the estimate is not a science, but more a “magic trick” to see through walls and rely on carpenters who have sick kids and transportation problems. Here, a much finer line between creating fear and instilling confidence is harder to balance, keeping those extra rooms for wiggles and giggles designed into the contract for their addition.

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Friday, April 4, 2008

First Visit


Considering that a simple bath renovation can be $20,000 and a whole-house make-over ten times that amount, it is amazing how little time and money people have to make such a large decision. In actuality, the first visit can decide everything for the builder, including not being invited to return.

Amazingly also, often the most basic courtesies can be overlooked, or worse, ignored completely. I have a notorious reputation among my co-workers for being late (always trying to squeeze something else in), but for a client, I am usually complimented for being on time. Since cell phones have become a tool (and we really did manage to live without them), a call acknowledging 15 minutes of tardiness is actually impressive.

In the last ten years, it has become common that houses are “shoeless”, so removing them immediately, waiting to be asked, or tromping right off the last job site and splattering mud all over the carpet of this one gives the owner a lot of information. I know a contractor who whipped out medical booties upon arrival and immediately established his expensive-but-worth-it reputation.



Again, this is the time to get to know each other. The builder needs to get oriented to the house, learn a little about the client’s needs and their expectations. Owners also have a lot at stake when inviting a stranger into their home to make months’ worth of mess and (hopefully) clean it all up again better than ever before. Feel out how you might get along. Are you each understanding the other? Are the ideas translated accurately? Finding a common ground beyond the project creates a connection and the trust begins to grow.

Standing in the space to be renovated while chatting through introductions gives the builder a chance to eye the surrounding trim, measure up the style and characteristics to be matched. As the owners explain their thoguhts, reassurances and expressions of confidence draws out their enthusiasm. Perhaps a brain-storming suggestion leads them to simple solutions they had not envisioned on their own. In the best of circumstances, it is an open dialogue of questions and ideas to shape the scope of the project.


Only after the full tour and careful, focused listening is the tape measure produced. With a CAD program that requires accuracy, I take my time, sketching the floor plan and writing every pertinent measurement on my intake sheet. The owners feel useful holding the “dumb” end of the tape; others rush off to tend to children, leaving me to calculate alternatives and ponder scheduling issues.




This modern age has given us digital abilities to take all the pictures, angles and details we need to recall accurately the existing conditions a week and three other sites later. Being thorough, even if the work is limited to one room upstairs, it matters to see the electric panel to know if there are additiional circuts and no ancient wires. The heat system could have bearing on the plans, or a critical post directly below the renovation might be necessary.

How much to discuss the budget is a topic all on its own. Some people tend to hold their number closely, fearful that revealing it will raise the price to just over that amount. Others admit they have no clue what such ideas might cost (they usually balk and postpone). In actuality, I believe—being honest and forthright—that a discussion of the budget on the first visit is healthy. The builder gets a sense of how serious is the prospect. The client may get a reality check to temper their expectations.

Usually, the owner cannot resist asking for a “ballpark” estimate. This is extremely dangerous because no matter how informal their request may appear to be, an inaccurate number offered at this early stage can haunt the negotiations a year later. I have learned to quote in very ridiculously broad strokes ($50 to $100 thousand), gracefully exiting with a follow-up date and an agenda to narrow that number to within 10% on the next visit. Then, they're looking forward to my return.

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