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4–1 Organization
The estimator must maintain a high degree of organization
throughout the estimate development stage. A well-organized
estimate improves the probability of getting the work, facilitat-
ing the actual work in the field, and completing the work
within budget. The organization required includes a plan for
completing the estimate and maintaining complete and up-to-
date files. It must include a complete breakdown of costs for
the project, both of work done by company forces (in-house)
and of work done by subcontractors. Using appropriate soft-
ware can be an effective way to keep organized. The estimate
information should include quantities, material prices, labor
conditions, costs, weather conditions, job conditions, delays,
plant costs, overhead costs, and salaries of forepersons and
superintendents. All data generated during the development of
the estimate must be filed in an orderly manner. The estimat-
ing costs are often stored in spreadsheets, databases, or estimat-
ing software packages. The original paper documents may be
stored in file cabinets and archived after a specified period, or
they may be scanned and stored electronically.
The estimate of the project being bid must be systemati-
cally done, neat, clear, and easy to follow. The estimator’s work
must be kept organized to the extent that in an unforeseen cir-
cumstance (such as illness or accident), someone else might
step in, complete the estimate, and submit a proposal on the
project. If the estimate is not organized and easy to read and
understand, then there is no possible way that anyone can pick
up where the original estimator left off. The easiest way for you
to judge the organization of a particular estimate is to ask your-
self if someone else could pick it up, review it and the contract
documents, and be able to complete the estimate. Ask yourself:
Are the numbers labeled? Are calculations labeled? Where did
the numbers come from? What materials are being estimated?
An organized estimate is also important in case the estimator
leaves the company before the project is complete. If he
leaves, someone else needs to be able to order the materials and
answer questions as to what was included in the bid.
4–2 Planning the Estimate
The need for organization during the estimating process is
critical. There are many decisions that need to be made con-
cerning the logistics of who will do which portion and
when. Figure 4.1 is a diagrammatic representation of the
steps that are required to complete an estimate. Another
helpful tool when preparing an estimate is a bar chart
schedule that details when the activities comprising the
estimate will be completed. In addition, the persons who
are responsible for those activities should be listed on the
schedule. Figure 4.2 is a sample bar chart schedule for com-
pleting an estimate. The bars and milestones will be dark-
ened as the activities are completed.
Since the preparation of an estimate is a corrobora-
tive effort, it is essential that all persons have input into
when certain items are required and that they under-
stand the interrelationships between the responsible par-
ties. Therefore, one of the first things that needs to be
done when preparing the estimate is to bring together all
the estimate team members to develop the overall esti-
mate schedule.4–3 Notebook
Anotebookshould be kept for each estimate prepared. The
notebook should be broken down into several areas: the
workup sheets, summary sheets, errors and omissions
sheets, proposals received from subcontractors, proposals
received from material suppliers and manufacturers’ repre-
sentatives, and notes pertaining to the project. Also, a listing
of all calls made to the architect/engineer should be kept
together, specifying who called, who was contacted at the
architect/engineer’s office, the date of the call, and what was
discussed. The notebook should be neat and easy to read
and understand.THE ESTIMATE
CHAPTERFOUR