Construction company estimating departments are sometimes like sausage machines turning out price after price, quote after quote, working on a number of estimates at any one time. I’m amazed at how estimators manage to keep the different projects separate, how they isolate and review different supplier and subcontractor quotes for the different projects, how they manage to do this without making mistakes. Or do they?
Unfortunately contractors do make mistakes pricing projects. These mistakes might increase their price, probably meaning they don’t win the project. Sometimes they fail to include documents requested by the client resulting in their proposal being disqualified or going in the trash (a waste of effort). Other times they under-price an activity and they lose money when they construct the project.
Of course companies can avoid some of these problems by being more selective with which projects they price, discarding projects which are unsuitable and concentrating on those that they really want. However, even so mistakes happen.
Ask these questions
It’s prudent to carry out a few checks before submitting your price. Ask yourself and your team these questions:
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The opinions expressed in the attached articles are those of the writer. It should be noted that projects are varied and different laws and restrictions apply which depend on the location of the contractor and the project. It's important that the reader uses the supplied information taking cognisance of their particular circumstances. The writer assumes no responsibility or liability for any loss of any kind arising from the reader using the information or advice contained herein.
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