September October 2023 0808
September October 2023 0808
ESTIMATING
AMERICAN SOCIET Y OF PROFESSIONAL ESTIMATORS
2023
TODAY
President
INSIDE
M. Chris Morton, FCPE
cmortonfcpe@outlook.com
03
A. Keith Parker, CPE
keithparker@circlebco.com
FROM THE PRESIDENT
Immediate Past President
04
Mel D. Cowen, LCPE
mel@cowen-est.com
Treasurer (Appointed)
NEW MEMBERS
Paul Croke
07
pcroke@hinrest.com IMPORTANCE OF CONTINUING
EDUCATION FOR YOURSELF AND
Northwest Governor
Steve Watkins FOR YOUR EMPLOYEES
steve.watkins@bnbuilders.com
Southwest Governor
Larry Lucero, CPE
llucero@redlineinsulation.com
THE HIGH COST OF THE LOW BID 08
12
Central Plains Governor
Matthew Burress, CPE
HOW TO ESTIMATE THE COST OF
mburress@performanceservices.com ACOUSTICAL CEILING CLOUDS
22
Southeast Governor
Danny Chadwick, CPE LIKE SANDS THROUGH THE
estimatordan@gmail.com HOURGLASS
Northeast Governor
24
Dexter Murphy, LCPE
8 COMMON CONSTRUCTION
dextercmurphy@comcast.net
ESTIMATING MISTAKES
INDUSTRY DIRECTORS
From the
President
you know others who would benefit from one
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word. If you are new to estimating, I hope you
take the time to look at our classes and con-
sider enrolling now. More information can be
found on our website at www.aspenational.
org.
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Keeping project details & Make project takeoffs Adjust costs, markup, tax, and Use robust markup, callout,
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you to our Bronze
Delta Innovative Services, Inc.
Corporate Basic
ML Group
Part ners! Unfied Building Group
Shaw Electric Inc.
GW Builders, LLC.
GFP Cem ent Contractors, LLC
“The riskiest position that any owner the owner, not the architect, and or a concert from the cheap seats?
can find themselves in on their con- not even the contractor. It’s down- Yeah – the nosebleed section with
struction project is when working right frustrating to be constrained binoculars. Cheap begets cheap.
with a contractor who is losing mon- from offering up your expertise and Fair implies reasonable, honest, and
ey.” This is the warning that I give knowledge because of some anti- just—NOT cheap. And yet that’s
every owner or developer planning quated process that was conceived what many owners demand of
to go with the “low bid” approach some 150 years ago. This approach contractors—a cheap price, and in
on their project. Yet many owners is a lose/lose proposition but here in the same breath complain that the
still believe just the opposite—that the United States we are addicted to quality just isn’t what it used to be.
making contractors compete on this low-bid mentality. In a sen- Really?
a low bid basis is the best way to tence—we are addicted to cheap, Let’s STOP confusing low-bid for a
“protect” themselves and ensure and it is at the core of what has fair price. The reality is that Ameri-
that they get the cheapest price. held this industry back for so long. cans, including buyers of construc-
Well, they are right on that front— There’s a very high cost to the low- tion services is addicted to cheap
they’ll get the cheapest price alright, bid mentality. It has kept us from (developers, government agencies,
but they won’t necessarily get the addressing major issues in our in- private business owners). If you
right price or the project they want. dustry such as the chronic albatross want to understand just how much
At least not without a bunch of around our necks—low produc- this addition has cost us as a nation,
change orders resulting from things tivity; not to mention the absence read the book “Cheap – The High
missing in the design documents of innovation, the lack of research Cost of Discount Culture” by Ellen
that neither the owner was knowl- and development investment, and Ruppel Shell, written in 2011. As
edgeable enough to detect, or the the failure to embrace technology one reviewer shared,
architect was aware were needed at a level that would catapult the
in the first place. This is just one industry to a whole new frontier. “Americans have always loved a
of the reasons that I am such an Many owners still insist that they good deal. But that love has evolved
advocate for design-build or any must go down the low-bid track to into a destructive obsession. Our
approach that allows the designers get a fair price. I always wonder – never-ending hunt for discounts
and contractors to work directly with fair to whom? Is it fair to anyone to has fed a plethora of social ills.
the owners at the earliest stage—to price improved productivity, high- By moving our production to the
establish the “right price” for the er quality, innovation, originality, lowest-cost labor markets, we have
level of performance and value the and better performance out of the sacrificed such basic values as
owner expects. This can’t happen spaces we design and build? Spac- craftsmanship and product integrity.
in a siloed, segregated environment. es like schools, and hospitals, and As Cheap ably proves, you get what
And because contractors are often workplaces, and even our homes? you pay for.”
the last party invited to the table, What’s so fair about that? In the book the author points to
and forced to compete based upon what I think is at the core of the
Let’s get real. When folks say they
low bid, they can only price what’s in fallacy associated with the low-bid
want a fair price, they often mean
the documents and nothing more mentality in construction.
they want a cheap price. Fair is
if they expect to win the job. As a getting what you pay for. Fair and “Most of us have absolutely no
former project estimator, I know cheap are incongruent when your idea what goes into setting a price.
firsthand how the game must be expectation is something other Consumers don’t think about the
played in a low-bid competition, and than what cheap delivers. Have costs behind what they buy. They
it serves no one’s best interest—not you ever watched a baseball game link price to profit, and they grossly
September/October| 9
overestimate profit margins.” industry and the contributions it makes asked for in the first place, to win your
This ignorance is often the basis for to society. job. Bottomline, the research shows that
what keeps the low-bid practice in play. So, what’s the alternative? It’s called best owners typically pay less for their proj-
value and there’s a few different ways ects under a best value scenario than
This ignorance fuels our fear—the fear
to achieve this goal while still utilizing they do under a low-bid scenario. The
of paying too much. The fear of being
a competitive process among project idea that low-bids yield a lower project
ripped off. The fear of price gauging.
teams. Best value allows the owner to cost is a myth—a myth that must be put
Yet, according to Conexpo Con/Agg,
establish a reasonable budget for their to rest.
“commercial construction is a high-risk
project, hopefully in collaboration with
industry with low profit margins. They I am convinced that the low-bid men-
folks who understand cost, quality, and
state that the average profit margin tality has outlived its effectiveness in
the dynamics of the supply chain, with-
before taxes for general construction the construction business. It is keeping
out cutting corners. Then they can ask
services is just 4 percent,” and those us stuck. It is keeping us unproduc-
their design and construction teams to
margins continue to shrink. In today’s tive. It is keeping us from innovating
compete based upon the greatest value
market the profit margins are probably and advancing as an industry. We are
that they can provide for the estab-
closer to 1-2 percent given supply chain never going to be able to address the
lished budget. You’d be amazed at how
challenges, increased prices, and the la- grand challenges and complexities of
much more a team can offer an owner
bor shortage—not to mention the added the built environment such as energy
when they can leverage their knowl-
expense of COVID. In what universe is consumption, transportation, urbaniza-
edge, expertise, connections, ingenuity,
a margin before taxes of 4 percent on tion, infrastructure, housing, health care,
and buying power to compete based
projects that have exposure to multiple education, etc. unless we can break free
upon their efficiencies, originality, and
risk factors beyond a company’s control, from the archaic notice that the cheap-
resourcefulness. Instead of general con-
over months and months, or even years est price wins.
tractors beating the creativity out of their
of time, a rip-off?
sub-contractors and suppliers so they
They say ignorance is bliss but, in con- can squeeze another few pennies off
struction, the ignorance that keeps the their unit prices to win your job, they’d
low-bid mentality in play is a travesty that be working together as a team to figure
is hampering the advancement of the out how to give you more value than you
10 | Estimating Today
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Programmatic / Conceptual
Estimates Performed
Overview Costs
Ripple Profile - Convex Profile - Convex Profile -
Vector Tegular Vector
The following items need to be
included with your estimate and
Sample tile edge type
breakdown using the CSI format.
For the use of this estimate, we will
use RS Means and DCD Costbook for
unit costing. It is good to use multi-
ple sources to cross-reference your
estimate as well as stay current with
the most up-to-date publications by
Tegular Panel Lay-In Panel Vector Panel those companies. Conferring with the
September/October| 15
contractor and your own historical or crane rental depending on wheth- contractors may use margin. It is
database is also good practice with er it is a large material delivery and important to know the difference
estimating especially if there are cus- what floor level it may be on. between markup and margin (for
tom systems involved. This is a brief example using rounded figures: 20%
description of each item and what Indirect costs markup = 16.67% margin or a 20%
should be considered and/or clari- These are the contractor percentage margin = 25% markup). This can
fied in the estimate. markups of the construction hard make a big difference in a large-
costs. This should be broken out at scale project for the costs to the
Labor the end of the construction hard project owner or can have an impact
These rates are based on local avail- costs or direct costs and typically are on profit for the contractor to stay
ability and should be determined line items such as general condi- in business. Either way, it will have
whether union, non-union, prevail- tions, overhead, profit, insurance, an impact on your estimate so pay
ing wage, overtime, or regular time and contingency. attention to it.
is required specifically. Otherwise,
state clearly what is estimated. Approach to mark-ups
Sample hanging detail with 12GA wire
Typically, mark-ups are used as a
Material percentage of construction costs,
Quantity is important to review but this can depend on project
as large and small quantities can size. If it’s a small project, the
impact the cost of a product. Often- contractor may look at it from an
times you can buy better with a large estimated time to manage rath-
quantity. Also, it is good practice to er than a percentage, or it can be
consult with the actual installer to a higher percentage for a small
ensure you are allowing enough for project compared to a large project
tile cuts and material overages that (example: $100,000.00 @ 20% or
may be required for custom curves. $10,000,000.00 @ 10%). It is always
For this estimate, we will carry a 10% good to check with the contractor
material overage in quantity to cover if you can, especially as this can
this. vary by region of the country. For
the purpose of this study, we will
Equipment: use 5% for general conditions, 10%
Generally, a ceiling installation is overhead, 10% profit, 2% insurance/
used with simple hand tools and a bonds/permits, and 5% for contin-
ladder, but site conditions may be gency. An important note here, this
the deciding factor for working from report calls for markup, but some
a safe level and platform. Ensure
you have accounted for either a
ladder or scaffold depending on Sample hanging detail with
ceiling heights. Ensure all necessary black iron grid system
PPE is on-site for personnel use and
is in accordance with OSHA regula-
tions. For example, we will consider
ladders to be used with a ceiling
height of 9’ and a deck height of 12’.
If there is a stairwell or higher deck
height, you may want to consider a
scaffold system or man lift rental if
the structure supports that. Lastly,
confirm material delivery into the
space is acceptable via the freight
elevator, ground level, or staircase.
Some cases may require a boom lift
16 | Estimating Today
Risk Considerations sections. Oftentimes, ceiling clouds product source location, or warranty
overlap and are not so clearly de- type. Another item to think of is if
Due to working with specialty finish fined in a 2D RCP. this is a manufacturing facility, some
products and custom metal piec- companies may require additional
es, there are certain risk factors to Ratios and Analysis safety precautions requiring more
take into consideration. Will there labor time. (Example: safety video
be other trades working above or When it comes to ratios and analyz- and exercises before work can be-
below the product during the time ing your work, it is important to ref- gin.) These items may impact labor
of installation? Can the contractor erence multiple industry databases or material cost. Also understand
install it after the other trades have as described above (under the cost what contract type this may be be-
completed their work? (Example – section 4) but also to create your tween contractor and owner (Exam-
MEPF trades are common to work own database of past projects which ple: GMP contract, the contractor
above, and furniture/equipment becomes historical data. Another may want to add more contingency.)
being installed below). Damage to interesting thing is to create a bid Also, ensure that the contractor will
material can drive up costs, but also leveling sheet so you can compare not need to provide shop drawings
if there are large components to be the costs of multiple contractors and by a professional designer as they
worked around upon installation, it use that to develop a median and will need to add costs for prepara-
may require more time for the labor tracking trend. These methods are tion, review, and approvals. Lastly, if
to work around it. Also, the required imperative to reference as you can an acoustical engineer is required to
labor type can impact cost if this find trends in industry costs, as the review material, installation during
needs to be installed on overtime economy can go up and down and construction, final approval, and
or union labor, so your wage rate rarely remains steady for long. It is field testing, which could be a factor
should be adjusted accordingly. If also good to combine total costs and that may need to be considered if
there is a large material delivery, divide them by SF of the area that the architect has written that into
some building owners require deliv- way you can quickly reference what the specification or if the manufac-
ery during a certain time period, so it cost per SF from the last project. turer requires professional approv-
you need to understand what that Always good practice to monitor and als to guarantee product warranty.
time is, so your labor is accounted continuously update your histori-
for. Working at high ceiling heights cal data so it’s up to date. Similar Manufacture representatives are
can also be risky and necessary idea to continuing your education generally available by region and are
safety precautions should be taken as products change, contractors a good resource for product knowl-
into consideration as well as some- change, and methods change over edge as well as budget costing,
one working below there should be time. recommended installation vendors,
plenty of workspace to ensure no and product data. They are usual-
one gets injured by falling debris or Miscellaneous Pertinent ly knowledgeable about a project
tools. Lastly, make sure you have a Information prior to estimating if their product
clear understanding of the ceiling is specified on the drawings, as they
areas and review section cuts of Make sure the project does not have engage with architects early in the
ceilings to be sure that you have any specific requirements such as design process.
not missed any multi-layered ceiling LEED/Green Building requirements,
September/October| 17
Sample RCP
Sample 3D view
20 | Estimating Today
Sample estimate:
*note ‐ material includes 10% add rounded up for cuts and overage
Description QTY UOM $/Unit Total Comments
Material
ACT 2 ‐ Grid (Yellow Color) 713.00 SF 1.45 $1,033.85 Open grid only (no tile)
ACT 3 ‐ Tile 615.00 SF 1.25 $768.75 2' x 2' tegular edge
ACT 3 ‐ Grid (White) 615.00 SF 1.05 $645.75 2' x 2' T‐bar grid
12 GA wire (pre‐tied on clip) 4.00 Each 75.11 $300.44 100/bundle
Powder actuated shots 4.00 Each 75.56 $302.24 pack of 100
White pop rivet 2.00 Each 9.45 $18.90 pack of 100
6" Axiom Edge Trim ‐ R11' ‐ 0" 76.00 LF 30.18 $2,293.68 Yellow trim
6" Axiom Edge Trim ‐ R8' ‐ 0" 55.00 LF 25.73 $1,415.15 White trim
6" Axiom Edge Trim ‐ R7' ‐ 6" 104.00 LF 25.73 $2,675.92 White trim
6" Axiom Edge Trim ‐ R7' ‐ 0" 49.00 LF 30.18 $1,478.82 Yellow trim
6" Axiom Edge Trim ‐ R6' ‐ 0" 42.00 LF 30.18 $1,267.56 Yellow trim
Material tax 6.625% $808.32 NJ Sales Tax
Total material cost $13,009.38
Labor (Non‐Union/Regular Time/Carpenter Rate)
Fasteners to deck 8.00 HR 75 $600.00
Grid system 12.00 HR 75 $900.00
Edge trim 10.00 HR 75 $750.00
ACT installation 17.00 HR 75 $1,275.00
Cleanup 1.50 HR 55 $82.50
Debris removal 1.00 HR 55 $55.00
Material delivery 2.00 HR 55 $110.00
Client/design review meeting 2.00 HR 75 $150.00
Total labor cost $3,922.50
Tools/Equipment/Rental
Manlift 1.00 Week 575 $575.00
Perry Scaffold 1.00 Month 92.16 $92.16
Construction signs 1.00 Each 75 $75.00
Mobilization 2.00 Each 350 $700.00 Delivery/pick‐up charge
PPE rental 51.00 HR 20 $1,020.00
Total labor cost $2,462.16
Fees and Totals
Total material, labor, equipment $19,394.04
Contingency 12.00% $2,327.28
Insurance 2.00% $387.88
General conditions 10.00% $1,939.40 Overhead/indirect costs
Fee 7.00% $1,357.58 Markup ‐ profit
Total direct and indirect cost $25,406.19
17
September/October| 21
The following are the most common manufacturing companies for product information and
installation methods. .
References
The following links are the most common manufacturing companies for product information
and installation methods.
The following are the most common manufacturing companies for product information and
installation methods.
Manufacture info:
https://www.armstrongceilings.com/commercial/en-us/commercial-ceilings-walls/ceilings.html
https://www.usg.com/content/usgcom/en/products/ceilings.html
https://www.certainteed.com/commercial-ceilings/
https://www.hunterdouglasarchitectural.com/ceilings/index.jsp
Quantity takeoff software:
https://www.planswift.com/
https://www.bluebeam.com/
https://www.oncenter.com/
https://etakeoff.com/
https://www.isqft.com/start/
Common cost database options:
https://www.rsmeans.com/
https://www.dcd.com/
https://www.craftsman-book.com/
22 | Estimating Today
Some years ago I was asked to conduct a seminar of sorts This epiphany regarding time-wasters
on effective time management. I was a bit taken aback reveals the power of jotting things down,
at this invitation, as I’d never been accused of being any and so we begin to convert our vaporous
kind of paragon of productivity. Don’t get me wrong—I’m thoughts into notes that keep us focused.
no slacker, either. I just never gave the subject of time We begin to make lists—daily and weekly
management much consideration before receiving that tasks. Consequently, we start to identify
dubious request. In fact, I was convinced that this assign- our listed tasks by prioritizing them with
ment was destined to be a waste of time itself—until I did different degrees of importance and
some research into the issue. Now, after reading several differing levels of urgency. I must
astute pieces on the topic, I’ve become a sadder but wiser recognize here that as estimators,
shepherd of my own hours, and now I am here to share our urgency is pretty well
what I learned with fellow bidmeister. determined externally—in the
form of assigned deadlines—
I’ll begin with an observation about how important good and most of us have already
time management applies to construction managers, and developed a sequential
specifically to estimators. I’ve penned several method for our similar
pieces here concerning the staggering amount of tasks tasks as a matter of
that befall those of us in construction management—they course. That is to say
are so numerous that just itemizing them is a chore. there is a common
Couple this with the kind of deadlines that estimators way that we
are subjected to, and combine it all with the steep rates quantifiers approach
that our employers pay for our hours spent. Now, the most estimates
relevance and the value of saving time in our occupations task-by-task that
becomes clear. we’ve previously
established through
In order to take control of spending time, one must first regular practice.
determine how one’s time is currently spent. I’ve found Even so, there are
that the most effective approach in this regard is to start tasks that befall us that fall outside the realm of construct-
a written journal identifying where, how, and how much ing an estimate: follow-up calls, upgrading databases or
I presently spend my time. I’m not trying to be glib when meeting with clients. This is not even to mention the many
I warn not to waste too much time with this. Just a few of us who double as project managers. So we can say that
jotted notes each day for a typical week will go a long way awareness of time management and making lists is sig-
toward identifying where the time flies, without intruding nificantly helpful for bidmeisters who only estimate, and
too much on an already demanding work load. Honesty critical for double-duty folks.
here is more valuable than volume, so I remind myself
that this informal audit is for my own benefit and not for Another painful truth to emerge from a casual audit
sharing. is that we tend to spend more time on a number of
tasks than seems reasonable. This is mostly due from
After a few days of keeping track, some of the most fla- the simple fact that we don’t have a clock ticking in the
grant time-wasters begin to surface. For instance, consid- background—a condition that can easily be remedied by
er how advances in communication technology have given assigning a reasonable amount of time for a task before
us modes of interaction that are invaluable in our day- hand, and sticking to the self-imposed deadline no matter
to-day dealings. Notice that they also present tentacles what. We can do this because we are, after all, estimators.
of commerce that inevitably entice us into unproductive
browsing. We all maintain essential contacts and perform Of course, there are many more strategies for saving time
vital tasks through email and text messages. But most of on the books, but I think the best ones are self-created
us refer to these avenues more often than necessary, and and self-imposed. So starting to jot down current distrac-
for some reason, they seem to become stepping stones tions and making some lists can open the door to signif-
for less productive media, like Facebook and Twitter. icant time savings that will help any bidmeister who can
Clearly, keeping time spent on social media at a minimum afford to (dare I say it?) invest a little extra time for it.
is a great starting place for most of us to reclaim signifi-
cant time for productivity. Reprinted with permission from the Association of the
Wall and Ceiling Industry and the August 2022 issue of
AWCI’s Construction Dimensions.
September/October| 23
https://scribehow.com/shared/How_to_Search_
the_ASPE_Member_Database__oUkVfEKzSCm-
vhe4hl231-Q
24 | Estimating Today
8 Common
Construction
Estimating
Mistakes
By: Kendall Jones| ConstructionConnect |Blogs
THE BENEFITS OF
GETTING YOUR CiCE
COURSES ARE:
Basic Estimating Math
2023
October
Critical 2
2
2024 Membership Renewals Begin
2024 Certification Renewals Begin
December
25 - 26 SBO Closed for the Holidays
31 2024 Membership Renewals Due
31 2024 Certification Renewals Due
(CPE and AEP)
2024
Critical
Calendar
1 New Fiscal Year Begins
22 Estimating Academy Classes Begin
January
EARN A DISTINGUISHED
CERTIFICATION
ASPE CPE Certification is accredited by
the Council of Engineering and Scientific
Specialty Boards (CESB), and
successfully credentialed candidates PROGRAM REQUIREMENTS
of the program earn recognition for CERTIFIED PROFESSIONAL
their skills. ESTIMATOR (CPE)
• For estimators with more than 5
GAIN A COMPETITIVE years professional experience
• 3 – 6 month timeline to complete
ADVANTAGE
• Required to complete the General
More projects across the country are
Estimating Knowledge (GEK) exam,
seeking credentialed estimators as an
Technical Paper submission, and Part I and
extra assurance of the quality of work.
Part II of the Discipline Specific Test (DST)
Increasingly, local, state, and
government agencies are moving ASSOCIATE ESTIMATING
towards requiring CPE certification. PROFESSIONAL (AEP)
• For estimators with less than 5
years professional experience
BOOST CAREER OPPORTUNITIES • 3 month timeline to complete
Enhance your career by opening doors • Required to pass the General
to the diverse projects and career Estimating Knowledge (GEK) exam
growth opportunities that the CPE
credential confers.
TENNESSEE
Middle Tennessee #34
Where: Varies
Website: n/a Please Note: Information is subject
to change. Report changes in your
Meeting Contact:
Chapter’s information with an email to
Ricky Sanford
Tina@ASPEnational.org
Rsanford7159@gmail.com
September/October| 35
TheBlueBook.com/ASPE
(844) 617-2478
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