In my last post I discussed a few of the problems associated with the “eye-ball” method of estimating. A measurement based method eliminates all of these problems. A measurement based method provides an objective process for pricing jobs, allows for the identification and correction of mistakes, and can easily be taught to others. In short, a measurement based method greatly reduces and/ or eliminates subjective opinion from the estimating process.
A measurement based system is based on the idea that if it takes 45 minutes to prep and paint a door at Mr. Smith’s, it should take 45 minutes to prep and paint the same door at Mrs. Brown’s. In other words, if we know the time it takes to prep and paint this type of door, every time we see such a door we know how much time to allot. Guessing and subjectivity is removed from the estimating process.
A measurement based system involves 3 basic components: the quantity of the task, the time required to perform a unit of that task (the production rate), and the degree of difficulty (access, difficult cut in, additional prep, etc.). We can attach a specific number to each of these, and in doing so, provide ourselves with an easy method for consistently calculating accurate estimates.
Each of these variables can be quantified. We can determine how long it takes to paint a French door or prep the walls in a 10’ by 10’ bedroom. We can determine the impact of certain obstructions or other access issues. In doing so, we eliminate guessing from the estimating process.
Of course, each job will not be exactly the same. Different levels of prep will be required, different application methods will be used, access or masking situations will differ. But the principle remains the same— identify each step involved in the job, know how long each step takes, and determine how much of each step is required for a particular job.
In its simplest form, an estimated price is the sum of labor costs, material costs, overhead, and profit. Overhead and profit can vary widely among contractors, and are not the subject of this module. Material costs are a function of the surface area to be painted, the application method, and the spread rate of the paint. For example, if a gallon of flat latex will cover 350 square feet, the quantity of material required can be calculated by dividing the surface area by this spread rate. This same approach can be used to determine labor costs.
In my next post I will look at how to deal with several variables involved in estimating paint jobs. Click here to learn about our estimating e-book.
