Job Costing Estimator and Bidding Template

Description
Bidding on a job that involves multiple worker types and direct material costs requires a comprehensive approach to accurately estimate costs, set a competitive price, and ensure profitability. Here are the mechanics and considerations involved in coming up with this template:


1. Understanding the Scope of Work

• Detailed Specifications: Begin with a thorough understanding of the job requirements, including all tasks and the quality standards expected.
• Project Timeline: Estimate the duration of the project, considering the availability of workers and materials.

2. Estimating Labor Costs

• Identify Worker Types and Skill Levels: Determine the types of workers (e.g., electricians, carpenters) and the skill levels needed for the job.
• Labor Hours: Estimate the number of hours each worker type will need to complete their part of the project.
• Labor Rates: Calculate labor costs using the hourly wage rates for each worker type, including benefits, taxes, and insurance.
• Contingencies: Include a buffer for overtime or unexpected labor needs.

3. Estimating Material Costs

• List of Materials: Create a detailed list of all materials required for the project, specifying quantities and quality levels.
• Supplier Quotes: Obtain quotes from multiple suppliers for the materials to ensure competitive pricing.
• Transportation and Handling: Consider the costs of delivering and handling materials on-site.
• Waste and Loss: Account for potential material waste or loss during the project.

4. Overheads

• Include a portion of your indirect costs, such as office expenses, utilities, and equipment depreciation, based on the project's duration and resource allocation.

5. Profit Margin

• Determine your desired profit margin, which will be added to the sum of labor, material, and overhead costs to arrive at the final bid price.
• In this template, you can enter a percentage of total wages and a percentage of other direct costs that drives your profit, or you can zero those inputs out and just enter a percentage that calculates the bid based on the desired profit margin target. The inputs are easy to follow for this and labeled properly.

6. Risk Management

• Risk Assessment: Identify potential risks that could increase costs or delay the project, such as weather conditions or regulatory issues.
• Risk Contingency: Add a risk contingency percentage to the bid based on the identified risks.

7. Competitive Analysis

• Market Rates: Research current market rates for similar jobs to ensure your bid is competitive.
• Client Budget: Consider the client's budget constraints without compromising your profit margin.

8. Review and Adjustments

• Internal Review: Conduct a thorough review of the estimate to ensure all costs are accounted for and that the bid is competitive.
• Client Feedback: Be prepared to adjust your bid based on client feedback or negotiation, ensuring adjustments don't compromise the project's viability.

9. Presentation and Documentation

• Detailed Proposal: Prepare a detailed bid proposal that outlines the scope of work, timelines, cost breakdown, and terms of payment.
• Clear Communication: Ensure your bid clearly communicates the value you bring to the project, distinguishing your offer from competitors.

Bidding on complex jobs requires diligence, precision, and a strategic approach to pricing. By thoroughly estimating costs, considering market conditions, and managing risks, you can submit competitive bids that are profitable and meet the client's needs.


This template is also included in two bundles:

• All Models Bundle
• Accounting Tools