08/28/2024
With a definitive list of materials and equipment, specialty contractors begin to work with suppliers and vendors to get pricing information.
Specialty contractors have to be mindful of a few things when pricing materials.
Material waste requires ordering extra materials.
Contractors should work to eliminate unnecessary material waste, but some waste (due to material sizing, for example) is inevitable. Ideally, a contractor will be able to look back at past projects to calculate the expected amount of waste.
Bulk pricing may dictate order sizes.
For instance, a contractor may need 37,000 cubic yards for a project but find it is more cost-effective to purchase 40,000 cubic yards due to supplier pricing structures.
Quotes have limited lifespans.
A specialty contractor who receives a quote for materials needs to ensure that the quote is valid long enough to have their bid accepted and order materials for the project.
Contractors who do not already own equipment essential for the project will also need to reach out to equipment vendors to determine pricing for leasing or renting for the duration of the project.
Since equipment may be owned, purchased, leased, or rented, contractors must determine how the project affects associated equipment costs (for example depreciation or maintenance) and build this information into their estimate.
At this point in the estimating process, contractors will have the first definitive dollar figures that need to be included as project costs. From here on out, estimators will add more direct, indirect, and overhead costs to understand the true financial burden of the project from the contractor’s perspective.
Email: [email protected]
Learn more: www.bluebookestimators.com
