How to Make an Estimate - Without Losing Money

How to budget direct materials, direct labor, and machines for a job

A Comprehensive Guide to Accurate Project Estimation: Strategies for Avoiding Financial Losses. #estimate, #money, #construction, #calculation, #management, #budget, Without Losing Money

How to make a budget without losing money

When it comes to project estimation, precision is crucial to the success of any venture. As such, it is vital for professionals in industries such as construction, electromechanical assemblies, and similar fields to have a comprehensive understanding of the necessary steps and precautions to take in order to ensure a reliable quoted price. To assist in achieving these goals, we recommend viewing the following instructional videos. What is a budget, and how is it prepared? Before entering into the specifics of project estimation, it is important to understand the concept of a budget and its role in the process. Simply put, a budget is a financial plan that outlines the estimated costs and revenues associated with a particular project. It serves as a roadmap for the successful completion of a venture, and as such, it must be adequately prepared in order to avoid potential financial losses. In order to make an precise budget, it is essential to carefully consider the various aspects of the project, including the cost of direct materials, direct labor hours, as well as any necessary machinery and equipment. Each of these components plays a vital role in determining the overall cost of a project, and must be carefully estimated in order to ensure a reliable price quote. How to make an estimate: Without Losing Money When bidding on a project, it is imperative to have confidence in the quoted price, knowing that it is enough to cover all costs and ultimately result in a profitable venture. Failure to accurately estimate the costs of a project can not only lead to financial losses for the company, but it can also harm the reputation and credibility of the professionals involved. To avoid this scenario, it is crucial to follow proper procedures and techniques when making an estimate. By watching our series of instructional videos, you will gain valuable insights and practical tips to ensure your budget is precise and reliable. Whether you are looking to learn new strategies or refresh your existing knowledge, these videos will prove invaluable in your pursuit of precise project estimation. In conclusion, we understand the importance of accurate project estimation and the impact it can have on the success of a venture. By properly understanding and following the steps and precautions outlined in our videos, you can increase your chances of creating a reliable quoted price and ensuring a profitable result for all parties involved. So do not hesitate, watch our videos now and take the first step towards achieving financial success in your future

A Guide to Reliable Project Estimation . How do I create a construction budget?

How do I create a construction budget?

In this video we will discuss the following topics: Auxiliary materials in construction. Estimating indirect labor. Summary chart. Review of other specific costs What is the cost of the overhead of a job? Table to summarize. If you are in or planning to enter the construction, electromechanical assembly or similar industries, we recommend that you watch this series of videos that explain the steps to follow and the precautions to take to ensure that your estimates are accurate and reliable. During the bidding process, it is essential to be sure that the price quoted is sufficient to complete the work without setbacks and to be profitable. If you do not, you will not only fail to win the project. You could be in serious trouble. Learn or refresh your knowledge of how to create an accurate budget in this series of 6 short videos.

How to Calculate Overhead Costs in Construction Projects

How to Calculate Overhead Costs

How to Calculate Overhead Costs in Construction Projects: A complete guide for the correct calculation of overhead costs.

How to Calculate Man-hours Worked - Man Hours Calculation

How to Calculate Man Hours Cost in a Construction Project - Man Hours Calculation

Man hours Calculation

Calculation of incidence of overtime. Example the increase percentage of labor cost is.... [72.5/60] * 100= 20.83% more.

read more in Calculate man hours

A Guide to Reliable Project Estimation

A Guide to Reliable Project Estimation.

What is a budget and how is it prepared? If you are involved in the construction industry, electromechanical assemblies or any other similar activity, or are about to start, we recommend that you watch these videos which detail the steps and precautions to be taken to ensure that your quoted price is reliable. In this video we look at the following topics Estimating the cost of the direct materials in a work. Estimating the direct labour hours. Cost of machinery and equipment to be used.

How to Calculate Labor Cost - Man Hours Calculate

How to Calculate Labor Cost per Construction Project

How to Calculate Labor Cost – Man Hours Calculate

Comprehensive guide to calculating the direct labor cost of workers per construction projects. read more in Calculate man hours

Construction - Man hours calculation - Pipe welding time calculator

Man-hours calculation — Piping welding: Welding efficiency.

Piping Works — Man Hour Calculation for Pipe Welding

Calculation of the number of inches diameter of welding.
First of all, we will divide the welding of pipes into two large groups:
1 - Piping where the final quality control is performed by hydrostatic testing.
2 - Piping where, in addition to the hydrostatic test, the quality control is carried out with non-destructive tests (e.g. RT or UT).

ENGINEER - CONSTRUCTION - ESTIMATING PIPE WELDING MAN HOURS - PIPE WELDING TIME CALCULATOR

At present, for piping works, the contractors do the engineering, for example: by isometric drawing, pipe model that allows a fast construction in the workshop and an easy assembly on site.

We divide each isometric line into sections called spools for fabrication in the shop.

Once the spools are manufactured, we transport them to the construction site for their adjustment, positioning and the execution of the adjustment welds.

In general, with good engineering, the number of welds performed in the prefabrication phase is between 70 and 90% of the total to be performed.

This not only reduces costs and man-hours.

It also improves the possibilities of meeting the construction deadlines by reducing the incidence of weather conditions in the process of work execution.

It has been proven that welds made in the workshop are faster and with better quality control than those made in the field.

We must also understand that welding times vary depending on the material we are working with. 

For the moment we will refer to carbon steel pipes.

It is also necessary to understand that the welding time varies according to the thickness of the pipe (the thicker the pipe, the more time we have to prepare the bevel and the more welding work we have to do because we have to fill more).

It should also be noted that the larger the diameter of the pipe, the more difficult it is to handle.

Finally, we give here the standard times (we emphasize that speaking of standard times means that the operators have no economic incentive to make an effort to achieve a higher performance).
For the first type of welding (where the quality is controlled only by the hydrostatic test) and for a standard 4-inch carbon steel pipe, the crew time for one inch of welding is
0.70 MAN HOURS * inch, for field welding, and 0.40 MAN HOURS * inch, for prefabricated welding. 
The crew consists of a helper, a journeyman and a welder).
If the crew works 10 hours per day, each group will produce approximately 42 field and 75 shop inches per day.

Look out! 

This applies to work done under standard conditions. For more information, see my book "Estimator's Piping Man-hours Tool"

For the second type of welding (here the quality is controlled with non-destructive test, besides the hydrostatic test) and for the same diameters, the times for inch of welding in the field, will be of 2 MAN HOURS * inch, welding and 1 MAN HOURS * inch, welding in prefabricated.

The production for 10 hours of work is for each group of 15 and 30 inches per day.

Read more in Calculate man hours


Look out! 

This applies to work performed under standard conditions. For further information, please refer to my book "Estimator's Piping Man-hours Tool"

Note:

The time includes:

Piping welding

It does not include:

Complicated handling of piping.

Painting.

Insulation.

Supports.

Clamps.

Scaffolding for piping.

Construction estimator skills

Skills for Construction Estimators

Basic skill

The estimator needs basic innate skills for successful professional development. Of course, these skills are developed with experience, but the estimator must have at least certain innate skills to perform the job.
Anyone who wants to enter the estimating profession should have a combination of the core skills listed in Figure 1.

Math skills

Estimation by its very nature requires the formulation of numerous mathematical operations and complex calculations.
Mathematical literacy is essential for beginners.

Communication skills

Another necessary skill is the beginner's natural ability to develop good oral and written communication.
The success of the project is often hidden in the details and their correct evaluation.
In most situations, it is necessary to communicate on a routine basis with
Colleagues who specialize in the type of project in question.
Equipment and service providers.
The client.
With subcontractors.
Or with attendees at business meetings.
Good writing is another critical skill that will help you present complex reports clearly and concisely.

Perseverance or persistence 

This trait is a hidden gem, but essential to the estimator's personality. 
Estimators must be persistent. 
Perseverance is used, for example, in the painstaking effort to find the best price for an infinite number of materials for a project in a universe of suppliers. 
Perseverance enables the estimator to complete all aspects of the bid in a timely manner, regardless of the effort required.

Honesty and reliability 

Evaluation work requires honesty and reliability. 
These qualities are required by:
The company's shareholders, who are interested in the economic success and prestige of their company. 
Your own colleagues, who will manage projects based on the appraiser's preliminary analysis.

How to choose a Contractor

How do I choose a contractor?

Selecting a Contractor Checklist

Podcast #3

In this audio, number 3, we discuss the key functions of the client's purchasing department and the role it plays in selecting the most appropriate contractor. 

How to Estimate

How to Estimate

How do I perform construction and industrial assembly?

Podcast #2.

PODCAST #2

How to do an estimate? In this audio, which is the second in a series of podcasts, the tasks that an estimator or a group of estimators typically perform to quote a project and the skills that are most in demand in the research profile of a successful estimator are disseminated..

How to perform construction and industrial assembly.

How to do construction work?

How to perform industrial construction and assembly work

Podcast#1

General information

In this first podcast, we share generalities about how to estimate industrial construction and assembly work.

Diameter inch calculation

Inch Diameter Calculation 

How are inches of weld in piping counted?

The number of diametral inches welded depends on the design and specifications of the piping system.
For example, a piping project typically involves the installation of pipe runs and fittings of different diameters, with each welded joint contributing to the count. It is necessary to consult the piping drawings, specifications, or project documentation to determine the exact number.
Here is a typical case of how to count inches of weld using the picture in the book  "Estimator's Piping Man-hours Tool"

 Number of Inches of Weld

Diameter Inch Calculation. The illustration above shows a discharge line starting at the discharge flange (2 1/2" diameter) of a centrifugal pump and then connecting by a 2 1/2" x 4" concentric reducer to a 4" diameter line terminating in an NPS 6" manifold.

To count the number of inches, count the welds according to the following table.

We notice that for the number of welds we only consider the diameters of the components of the section we are considering. In the next entry, we will analyze how the thickness (SCH), the pipe materials and the external conditions affect the welding times for the same pipe diameter.

Infographic of eBook "Estimator's Piping Man-hours Tool"

Infographic of eBook: Estimator's Piping Man-hours Tool

Man Hours Calculation

After calculating the man-hours obtained by multiplying the type of union of the line of the pipe by the consumption of hours to execute each type of union-consumption of hours that you extract from the eleven tables of consumption verified by the hand of the work of the e-book. "Estimator's Piping Man-hours Tool"; you need to adjust this total number of hours to increase or decrease it according to the conditions under which your project is being developed.

Here is an infographic that summarizes this concept.

e-Book "Estimator's Piping Man-hours Tool"