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Tricky
There is hardy a time when a construction job does not have all my equipment at the job site, so therefore I figure it is just easier to multiply my total equipment hourly rate by the labor hours on the job. This is not a full proof system and as we all know in construction, no two job sites are the same, thus no two estimates are the same and a certain amount of adjustment needs to be made with each estimate.
Rental equipment is treated entirely different for me and is truly a job by job situation.
Even with the method that I use there is so much guess work that goes into it, that it is hardy perfect. You know as well as I that this business dictates that one be flexible and ready for change. I would dare anyone in this message board to know exactly how long a skid steer will be used on any construction site and to calculate it accordingly, when that piece of equipment is there, it will be used. According to Vander Kooi, even if a piece of equipment is delivered to the site and sits there it should be charged. I personally do not agree with all of that, however since the payments do not stop because the equipment is not running, there is some logic to this.
When I finish with a estimate I always take a final look at it to see if I am comfortable with the numbers. I cross check against any square footage numbers that I may have floating around, for instance paver or retaining wall work.
Equipment and profit are the two items that you can adjust (or give away) in hopes of getting any job and still feel you might do better once on the job. Knowing where the numbers come from can only help in that decision.
Good discussion everyone............................
Tom
Milestone Landscape
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