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Building A Dream Business

What is “Business Clarity” and How Do You Find It?

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A Lack of Knowledge and Inexperience Threatens Your Dreams

Once again, John was alone at the office late on a Saturday night working to get at least one more proposal done, before going home. He had promised four different customers their proposals this week. If all goes well, he’ll have this second one finished before midnight.

As John crunches numbers hoping he hasn’t forgotten anything, he asks himself, “Why am I doing this? I could go to work for somebody else and make more money and work less hours. This sure isn’t how I pictured it five years ago when I started the company.”

“I had no idea that running my own business would be this hard!”

John rubs his eyes and stretches his back and thinks, “I must be doing something wrong. When I was working for Gene at XYZ Construction he made things look easy. I wonder what he was doing different.”

John has been working like crazy all week long. Between production help not showing up, materials not being delivered on time, cost overruns and computer issues…projects are behind schedule, he’s losing money and even if he works tomorrow he’s going to have to disappoint at least one of the customers waiting on a proposal.

“How am I ever going to turn this around?”

When John finishes the proposal and looks at the clock, it says 12:40. It’s already Sunday he thinks and he still needs to proofread it, print it and sign it. Something has got to change! “I’ve been leaving home early and getting home late all week. I haven’t even spoken with my wife for days. I’m calling Gene Monday to see how he did things.”

First thing Monday morning John called Gene. After a few minutes of catching up, John asked Gene the question that he couldn’t quit thinking about. “Gene, I’ve been working day and night trying to keep up. When I worked for you it seemed like you had everything figured out. You weren’t stressed and when things didn’t work out as planned. Your customers understood what to expect with their projects and were happy when they were finished. What am I doing wrong?”

That’s the question that almost every business owner asks themselves.

“Know this,” Gene said, “When I started my business, I was just like you. I struggled to keep up, worked too many hours, neglected my family, was mad at myself for letting down my customers, my family and myself. I kept asking myself that same question. What am I doing wrong?”

“By the time you were working for me, I had figured some things out. It’s amazing what you can learn when going to the “school of hard knocks”. Keep in mind this is the most common process but isn’t the most effective.”

“What really turned my business around was when I found out about Solution Building’s, Blueprint for Building a Better Business.”

Think about how much easier and better a construction project goes when you have a plan. The same thing is true for a business. A plan gives you direction, keeps everyone involved working together and improves the odds for a successful outcome.

“John, if this is something you would be interested in, I would recommend starting with the, ‘Blueprint for Building a Better Proposal’. This is the most important and most neglected part of construction communication. If you’d like I would be happy to meet with you and go through the process and answer any questions.”

“If you know of any other construction companies that you think could use some help doing proposals share this information with them and they can meet with us too.”

“There’s a lot more to the ‘Blueprint for Building a Better Business’, but starting out, you should focus on the proposal system. After you get this part implemented, we can discuss which part of the business blueprint system would be best for you next.” After talking with Gene, John thought, “I’m sure glad I made this call. For the first time in a long time I feel like there might be a light at the end of the tunnel that wasn’t an oncoming train.”

Focus is Hard When There’s No Revenue

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How to Determine When to Stop or Keep Going

What the heck am I supposed to be doing? Should I quit spending time trying to develop a coaching/consulting business? When there’s no revenue generated from it, the time spent working on it, takes time away from the current revenue generating construction.

I knew from researching, that it would take some time to develop this new business. I’ve been posting a weekly solution every week for almost four and a half years, that’s over 230 posts. During that time, I have attracted less than forty subscribers. Not to mention there is almost no interaction with the few subscribers that I have.

This raises questions. Is the content relative to our target audience? Maybe the low connection is a lack of writing ability? I started as a builder after all. Maybe it’s just a matter of how busy and overwhelmed everyone is? Maybe this isn’t the best format to reach them?

Uncertainty results in inaction.

I’ve always been a cautious person. I tend to overthink and analyze things to death. This process often leads to slow or no action. As I have considered whether to continue with the coaching/consulting, I’ve come to some conclusion. This was reached in part thanks to my wonderful Kingdom Builders Mastermind group and Andy Andrews book, The Travelers Gift, The Seven Decisions for Personal Success.

I include these seven decisions as part of my daily routine. After reviewing the input from the mastermind group, I realized these Seven Decisions paralleled the groups input and what I already knew.

Here are those Seven Decisions and how they pertain to this decision:

The Responsible Decision –

My success or failure is up to me. Where I am is no one’s fault but mine. Where I end up is no one’s fault but mine. I have control over what I will do and how I will move forward. My past cannot be changed. My future is my responsibility. The buck stops here.

The Certain Decision –

This is a tough one for me. I have spent too much time second guessing myself. My lack of certainty makes moving forward hard. How do I know if this is the right thing to do? I know this, because God has given me the knowledge of the need, the skills and experience to help others find solutions and a passionate heart for this task. I have a decided heart.

The Compassionate Decision –

Forgiveness has never been much of a problem for me, as it relates to others. I forgive easily which often results in people taking advantage of me. Where forgiveness is an issue…is forgiving myself. I get stuck in the rut of replaying all my mistakes, failures or lack of achievements. I can’t let my past dictate my future. I will greet each day with a forgiving spirt. I will forgive myself.

The Guided Decision –

When wondering what to do I seek direction from God and His Word, my friends and family, books, podcasts, blogs, etc. I’m constantly searching for wisdom. Too much of the time I’m seeking wisdom and not putting it into action. I’m looking forward to honest feedback from the mastermind group. I will seek wisdom.

The Joyful Decision –

My attitude is a choice. How I respond or react to a situation is a choice. These choices affect my outlook. I can approach things with a discouraged, depressed, ungrateful heart. Or I can remind myself how fortunate and blessed I am to have been given the insight and skills needed to lead others in way to build better businesses, construction projects and lives. I will choose to be happy.

The Active Decision –

Action is out of character for me. Concern that something done wrong will cause problems, leads to inaction. This inaction leads to nothing being done. Nothing being done helps no one. God is waiting for me to do something. Slow decisions lead to failure. Fear of failure keeps me from action. Just because a decision is made doesn’t mean it’s permanent. Failure only exists for the person who quits. I will not quit. I am a person of action.

The Persistent Decision –

Not quitting or giving up is the cornerstone to these decisions. It is the one decision, if removed, causes the whole thing to crumble. Many times, I’m tempted to quit. By persisting, my outcome, my success, is assured. In Jeremiah, God says, “I have good plans for you, not plans to hurt you. I will give you hope and a good future.” Failure only happens if I quit…I will not quit. I will persist without exception.

After running my coaching/consulting question through the filter of these Seven Decisions, I’ve determined that I will keep going.

What exactly this will turn out to be, remains to be seen. I want to know now, exactly what it’s is going to be, down to the smallest detail. I need to shift my focus from so far out, to the first next step. Writing this week’s solution is that first next step. We’ll give some thought to how to reach out to those who would benefit from our help in finding their solutions and take the first next step.

Why Do We Put Things Off Until the Last Minute?

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This Seems to Be Especially Prevalent in The Construction Industry

I was visiting with some people recently about the disappointing number of companies signing up for the upcoming Blueprint for Building a Better Proposal workshop. I’ve seen the results of poor communication between contractor and customer. This workshop would help with this problem.

Every one of the people I was talking with said the same thing. “They’re contractors, they’re not going to sign up until the last minute. I wouldn’t be surprised if they just show up.”

Later I visited with a few different construction company owners and asked if they were coming to the workshop. Their answers were eerily similar…I’m not sure if I have time. I’ve got a lot of work scheduled. I’m not sure that I can afford to take a day off work. I’ll have to wait and see how things are going.”

Why would this be a problem in construction more than other industries?

I don’t know if it is more of an issue in construction than anywhere else or if it just seems that way because that’s where my focus is. There are a few things that I think contribute to this situation, construction or not.

Why are there so many that aren’t signing up for the workshop?

We’re too busy – We’ve said yes to too many things. We feel pulled in so many different directions. It’s common to hear people say, “I don’t have enough time.” Most of us overbook and then spend most of our time fighting the hottest fire. My argument is –

God has given us enough time…it’s up to us to invest it wisely.

We struggle with prioritizing – I’ve got this important project that I’m working on. It’s more important than learning something new. Every day we are learning in a variety of ways. The question is, which is the better investment, learning from “on the job mistakes” or from someone else’s. On the job mistakes can be very costly.

Learning from what someone else has learned is a good investment.

Not sure if that training is for me – How will you ever know if you don’t check it out? Most of the time our uncertainty is fear. We’re afraid to learn new things. “I’ve managed to get along just fine so far”. Wouldn’t it be nice to have a predesigned system that would improve your communication and increase your accuracy? The question is…

How long can “getting along just fine” be sustained?

I can’t afford it – Things are tight right now. Profits are down. Maybe I can do it next time. What if your out of business before the next time. There is a cost to any kind of schooling formal or otherwise. How long can you afford to not invest in yourself?

Investing in this workshop now, improves your odds for a brighter future.

I don’t know if the construction industry procrastinates more than any other. What I do know is, if you’re in the construction industry, time is running out to invest in yourself and your business. Don’t put it off any longer. Stop procrastinating and get signed up for the Blueprint for Building a Better Proposal workshop.

If you or someone you know would benefit from learning how to do better proposals, sign up here.

How I Use My Calendar to be More Productive

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Investing Your Time Intentionally Is the Key to Unlocking Productivity

There are as many different ways to use calendars as there are people. Not only that, but if you’re like me, the way we use them continues to change. Not to mention, that calendars themselves keep changing. They have gone from tracking days by scratching a mark in the wall of a cave to now being computerized.

Purpose driven people are constantly looking for ways to be more productive.

I don’t know if I’m going through a phase or if getting older is making me more aware of the limited time I have to spend. Either way my desire to be more productive is at an all-time high.

When scheduling things, it is important to be flexibly rigid. This is balancing the importance of planning with intentionality and the realization that life happens. Finding that balance is hard.

One of the benefits to a computer calendar is the ease with which things can be added, shared, moved or deleted…this is also a detriment. Over the past few years I realized that I was moving things on the calendar that I had scheduled with myself. I would schedule tasks for myself on the calendar and they would get pushed back and back and back again. Then I realized I wasn’t giving meetings with myself as much importance as those with others.

Then I realized the calendar is like any other tool. It doesn’t serve its purpose if it isn’t used properly.

The first thing with any tool is to determine what its purpose(s) is and use it accordingly.

  • Scheduling meetings – The most basic purpose of a calendar is for scheduling meetings. These may be recurring meeting or one-time meetings. Scheduling our tasks as meetings with ourselves and giving them equal importance is critical to productivity.

  • Reminder of things ahead – This could be meetings, events, actions, birthdays, anniversaries, etc.

  • Budgeting time – Similar to money a calendar can work like a budget for time. When you start filling out the calendar there is a limit to how much space there is. When it gets filled up, you’re going to need to stop trying to spend more.

  • Prioritizing what you spend time on – Once the calendar is full and there are still things to put on it, you must decide what goes on and what comes off. This calls for a time triage

Determine what works best for you and use your calendar accordingly.

Some days I would accomplish almost everything on my list and then there were days where it felt like I hadn’t achieved hardly anything. As I began to study why that was, it became apparent that the most productive days were the ones that I had packed the calendar full, from beginning to end, even little things. The days that were less productive had more unscheduled and open time. I realized that when my day was scheduled so full that I didn’t think I could get it all done, I was focused and did much better at staying on task.

Over the past few weeks, I’ve been scheduling my calendar full, to the point of some days being scheduled tight without any open space. In doing this I have noticed that I have been consistently more productive. This doesn’t mean that everything gets done, just that I’ve been more productive.

There’s still a lot of room for improvement, but this seems to be working.

I still need to work on being wiser about what I spend my time on. There’s limited time so we all need to be good stewards of the time we’ve been given. Being productive requires intentional action. Productivity seems like a big monster, but we can take him out if we’ll just start implementing small steps in the right direction.

What Does It Mean to Have Clarity?

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Really, I Just Want to Know!

What is “the thing” that I’m supposed to be doing? How do I know if that’s “the thing”? Maybe I should be doing “that other thing” instead? Where should I go from here? How do I know if that’s the right way? Am I the only one who feels this lost? What’s wrong with me?

So many questions, this is making my head hurt!

When I was growing up, I knew exactly what I was going to do for the rest of my life. I was going to farm with my Dad, just like he was farming with his. This was a great plan and it was going well until those plans got changed. When I was in my early thirties my Dad died, at fifty, of cancer.

We were farming together, he owned some of the equipment and I, using borrowed money, owned some. The problem at this point was, I couldn’t afford to buy his part so…I got out of farming.

In addition to farming I had been doing construction for most of the previous ten years as well. I liked doing it, was good at it, so this seemed like the logical thing to do, and it was.  

As life went on, I again began to give up on dreams, those unachievable fantasies. Who was I kidding? I wasn’t ever going to achieve anything more than mediocrity. It’s not that life wasn’t good; it was just…unfulfilled.

Then God got my attention with a board upside my head.

I survived an accident and was still alive…God wasn’t done with me yet. It was at this point I began dreaming again and believing anything was possible. I had new dreams and plans. I was excited about the possibilities…but now seven years later, I’m still trying to figure out how to turn those dreams into reality. Maybe there isn’t anything more.

I better be careful; God may do something to get my attention again.

Over the past seven years I’ve been searching for clarity and direction. I’ve prayed, read, studied, researched, listened, watched, multiple different things from a lot of different people. All good advice and very inspiring. Why is nothing changing? What am I doing wrong?

It’s been said that a rut is just a grave with both ends kicked out and here I am stuck in a rut of my own making. Walking back and forth looking for a way out isn’t working; it’s just making the rut deeper.

If I want to get out of this rut, I need to stop doing the same things hoping for different results.

God has big plans for us, and He will move mountains to create opportunities for us to achieve them. It’s up to us to move ourselves. I believe it’s Satan that causes us to stop short of those big God plans. It’s much better for him if we don’t achieve those successes. He’s the one who plants the doubt and fear. Telling us that we don’t have what it takes to do that big thing…who are we kidding.

Over the last seven years I knew my purpose and what I was supposed to be doing. This website and these weekly solutions are all part of that. At the same time, I felt as though I was just pretending…It really wasn’t going to happen. Look at the small number of follower’s that I have. No one cares about what I have to say.

Stop this, you’re being ridiculous.

In an effort to get different results, over the last few months I’ve done some “different”, some really big “different”. Big commitments of both time and money. Doing things that are way outside of my comfort zone. One of these things was joining Ray Edward’s Kingdom Builder mastermind group. This involves a weekly virtual meeting with a group of twelve specifically chosen people from around the country.

We’re just getting started and in our second meeting this past week, I was feeling overwhelmed. Once again, I asked myself, who am I kidding? I don’t belong in this group. I don’t have what it takes. These people are much better at what they’re doing than I am. I can’t afford this.

It’s happening again…Satan just shut up!

After the meeting…and wallowing a little…I remembered something that Ray said during a podcast, “Clarity starts with making a decision”. Most of us are waiting for clarity to be a simple light bulb moment. We expect it to be a bright shining mansion in the distance with a perfectly clear and straight path to get there and a chauffeur driven limousine to take us. This isn’t the way it works; clarity happens after we decide and do.

In Ray’s podcast, 7 Steps to Getting Clarity he pointed out things that if we decide and do, clarity will follow:

  1. Calling – Our purpose, the thing we are called to do.
  2. Commitment – We need to be all in.
  3. Credibility – Others see our ability in the area.
  4. Congruent – It’s something we love doing, it comes naturally.
  5. Connection – We naturally connect with those we serve.
  6. Competence – We have God given skills in this area.
  7. Consistency – We keep doing it regularly and don’t quit.

As part of my daily journaling I read Proverbs 3:5-6 every morning. “Trust in the Lord with all your heart; do not depend on your own understanding. Seek His will in all that you do, and He will show you which path to take.”, New Living Translation.

The day after the meeting last week when I read this, for the first time I realized something that confirmed what Ray was saying. It doesn’t say, trust in the Lord, seek His will and He’ll give you everything that you dreamed. It says trust in Him, seek His will in all that I DO, and He’ll show me the path.

He will show me the path…He’s not going to DO He’s going to SHOW. It’s up to me to DO. It’s good to pray, read, study, research, listen and watch, but none of this is going to DO me any good if I don’t DO something.

Clarity’s not in here…it’s out there. If I want it, I have to decide and then go get it.

The New Website Is Here, The New Website Is Here

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“Things Are Going to Start Happening to Me Now”

Just like Navin R. Johnson in the movie, The Jerk, we all want to be somebody. Being somebody is more than just having your name in print in the new phone book…

or having a new website.

This doesn’t mean that we shouldn’t be excited about the newly rebuilt Solution Building website…because we are! It’s been a long process but totally worth it. Thanks Stacey with Custom Internet Services, for another fantastic job. This site is every bit as good as the Timber Creek Construction site.

Like Navin, we all start out wanting something but aren’t sure what it is or where we’ll find it. Navin’s search is filled with up and downs, successes and failures. He could have avoided some of his heartache if he’d only had access to a website where someone was sharing what they had learned from similar experiences.

Struggles are a part of life but can be reduced if we’ll some get help.

My hope for this new Solution Building website is twofold. First it is to help prevent construction companies who are struggling with a lack of business knowledge and understanding from becoming overwhelmed and unprofitable. Second is to help their customers avoid disappointment and frustration by knowing what to expect from the construction process.

We will do this by providing businesses with systems and training to make them more efficient and profitable while educating customers in what to expect through the entire construction experience.

When construction companies have the tools they need and customers know what to expect, both can achieve their dreams.

The first tool that we’re offering is the Blueprint for Building a Better Proposal. This tool consists of templates, samples and instructions on how to use the system. We are also offering a day long live workshop coming up on March 13th, where you will be given more in depth teaching and training.

You can find out more about this in these posts:

This is designed to help companies in the construction industry prepare consistent, clear accurate proposals for their customers. If you or someone you know would benefit from this Blueprint for Building a Better Proposal system, send them this link so that they can build better proposals.

The Conclusion of The Construction Proposal Is the Contract

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Two men in suits shaking hands

 

 

 

Putting A Period at The End of The Proposal Communication

 

The discussion of “Building a Better Proposal” began with the problems that arise from poor communication. We talked about this being the responsibility of the contractor and some of the reasons this is a problem.


Over the last several weeks we laid out the “Blueprint for Building a Better Proposal” going over the different parts of the system, an explanation of the system, gathering of information, writing a scope of work, putting a price to the project and finally how to put all of the pieces together into a proposal ready to present to the customer.

 

Once you have a signed Proposal, conclude with a Contract.

 

 

 

 


The Contract completes the Proposal process and covers things beyond construction. Things like funding, additional documents, property boundaries, time within which the project will be started and terms and conditions.

  • Construction Funds – This isn’t something that is relevant to every project but will be to some. If it is, the information would be included in this section of the contract.

 

  • Description of the Work – A complete and full Scope of Work could be included here but not needed if the customer has been presented a Proposal. If so then a brief description of the project can be inserted and a reference to the specific Proposal and any other additional documentation, i.e. blueprints, drawings, spec sheets, governing body documents, etc.

 

  • Property Lines – This is another category that isn’t relevant to every project but certainly can be. If working inside of city limits, normally there are set back requirements and easements, this makes it critical to know where the property boundaries are or to have a licensed surveyor make this determination.

 

  • Payment – Like the description of work above, this should be in the Proposal. If no Proposal was given to the customer, then this should be specified here. If a Proposal was given repeat it again here.

 

  • Time for the Completion of Work – The duration of the work from start to finish is typically expressed in the Proposal. Due to the varying number of Proposals prepared and presented to customers, there’s no way of knowing what order they will be signed and returned. With the Proposal being signed and returned prior to the preparation of the Contract, the start date of the project can be determined and specified here.

 

  • Terms and Conditions – An in-depth explanation of specifications, descriptions, expectations, insurance, warranty, media permissions, etc. These will be specific to your company, type of work and location.


I would recommend that to have a legal expert or attorney review your Proposal and Contract templates as well as any other agreement document to make sure they meet your specific needs.


 

We’ve now gone through the process of meeting with a customer all the way to getting a signed Contract. Now it’s time to do the “construction” part of the project.

 


Communication will be needed in this part too.


Just because you have a signed Proposal and Contract don’t think the communication is done. In most construction project changes occur. These changes need to be treated like separate, sub-projects of the original with Change Orders.


This is a topic of discussion for a different day and one that we’ll have in the future.


If you know anyone in a construction trade or related industry that you think would benefit from learning the “Blueprint for Building a Better Proposal” share a link to this Weekly Solution or the to the Solution Building website. 

 

 

Don’t forget to check back in the next couple of weeks for the upcoming announcement.

 

How To Put The Pieces Of The Construction Proposal Together

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The Last Piece Is Always the Most Fun

If you’ve ever done a jigsaw puzzle, you know how frustrating it is to get to the last piece…and you can’t find it anywhere. This is the same frustration a customer feels when they don’t have the full picture of what is to be included in their construction project.


Giving the customer a complete and thorough proposal gives them the full picture.


Doing puzzles growing up I remember when getting near the end of a puzzle the level of excitement would begin to amp up. In the accelerated push to get it finished more people would get involved, in the rush, often a piece would get lost. Finding the missing piece and putting it in made the picture complete.


There’s a real sense of accomplishment when the last piece of the puzzle is put in place.


It’s the same finishing a proposal…the final piece is now in place. The hard work of gathering the info, preparing the Scope of Work, and pricing are done. All that’s left is putting them together to provide a clear picture for the customer.


Jane Smith’s laundry/sewing room project.


Start with the Proposal template.

Insert the customer information in the open areas at the top of the first page as it pertains to the project.

To: This is the name of the person who requested the proposal or is responsible for the project organization.

Re: This is a name describing this specific construction project.

For: This is the party or organization for who the project is going to be done for.

At: This is the address of where the construction project is going to be performed.

Copy and paste the description of the work to be performed and material to be supplied from the Bid Sheet on to the Proposal template. (See below)

Next, take the prices from the Worksheet for each individual described action on the Proposal and place it on the right side of the page. At the end of each section put the total price for that section. (See below)

Now that the description of the work to be performed, the materials to be used, the prices for each action and the totals of each section have been placed on the Proposal template, it’s time for the project to be totaled. Complete the Proposal by defining the payment schedule, determining the date in which the Proposal will expire and the duration of time to complete the project. The only thing left is signing of the document.

Once the proposal is signed, I recommend following up with a Contract. Even though the signed Proposal serves as a legal and binding document, there is nothing in the Proposal about when the project will be started. The Contract also includes more detailed customer information, a list of any referenced documents, a place for construction funding information, property specifics and legal terms and conditions.


We’ll look at a Contract in the next post.

If you’ve found this series on the “Blueprint for Building a Better Proposal” helpful and you or someone you know would be interested in the templates for Building a Better Proposal, keep checking back. In the next few weeks we have a big announcement coming.

How To Price A Construction Project Proposal

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Now It’s Time to Give the Project A Dollar Amount

 

The next step in the “Blueprint for Building a Better Proposal” is to determine the price for the project. We’ve talked a lot about the importance of communication to provide a clear description of the work to be performed. Now we’ll go through the process of determining consistent and accurate prices.


Poor communication will cause heartache, poor pricing will cost you money.


We’ve gathered the necessary information and prepared the Scope of Work so let’s put some numbers to the project.


 

Here we’ll combine the next two steps in the process; determining what pricing is needed for each specific construction tasks to be performed and quantities pertaining to each.

 

 

STEP 3 – PRICING THE PROJECT


This process uses two different Excel spreadsheets:


The Worksheet –
An Excel spreadsheet with all the construction sections and tasks listed out with optional overhead and profit markup formulas inserted in the appropriate locations.

The Data Base –
An Excel spreadsheet with prices for material and labor for a wide variety of specific construction tasks.


Based on the descriptions on the Bid Sheet, content from the Data Base will be copied and pasted into the correlating cells on the Worksheet.

EXAMPLE PROJECT:


Using Jane Smith’s Scope of Work for her laundry/sewing room addition we’ll determine the right information that needs to be copied from the Data Base and pasted to the Worksheet. Reference the Smith, Scope of Work here. 


Questions need to be answered like:


Which tasks need to be inserted into the Worksheet? Many of the tasks have options; which to use, will depend on the specifics of the project.


For example; How is the excavation, trenching and landscaping going to be done…with a skid loader, mini excavator, by hand or a combination?

Smith, Addition – Scope of Work, Sitework Section:

 

Data Base:
Copy pertinent cells to be pasted to the worksheet. (highlighted cells)

 

Smith Addition – Worksheet, Sitework Section:
Paste copied cells in worksheet template. (highlighted cells)

 


More questions that need to be answered:
Is the footing going to be formed with wood or poured in the ditch without any forms?

 

Smith, Addition – Scope of Work, Foundation Section:

 

Data Base:
Copy pertinent cells to be pasted to the worksheet. (highlighted cells)

 

Smith Addition – Worksheet, Foundation Section:

Paste copied cells in worksheet template. (highlighted cells)

 

 

After the pertinent information from the Data Base has been placed on the Worksheet it’s time to fill in the specific quantities. This will then provide the prices for the work to be done.

 


STEP 4 – QUANTITIES

On the Worksheet you will fill in the quantity needed to do the work on that line item. This may be lineal feet, square feet, square yards, cubic feet, cubic yards or numbers of pieces. Once this is completed you will now have prices for the Proposal.

 

Notice the highlighted cells in this spreadsheet. These are adjustments made due to the attributes of specific tasks on specific projects. In the case of this project the small size and location of the work in the back yard require some additional work and therefore additional cost.


I know this is a lot of content and information but it’s not as scary as it appears at first glance. The question that you need to ask yourself…


Do I want to be intentional at serving the customer’s needs at a profit or just guess and take a chance?

 


The next step is to bring all the pieces together in a thorough and accurate proposal that will give the customer a clear picture of what they’re getting and how much it’s going to cost. Check back next week for this part of the process.

 

 

How To Price A Construction Project Proposal

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Now It’s Time to Give the Project A Dollar Amount

 

The next step in the “Blueprint for Building a Better Proposal” is to determine the price for the project. We’ve talked a lot about the importance of communication to provide a clear description of the work to be performed. Now we’ll go through the process of determining consistent and accurate prices.


Poor communication will cause heartache, poor pricing will cost you money.


We’ve gathered the necessary information and prepared the Scope of Work so let’s put some numbers to the project.


Best Price

 

Here we’ll combine the next two steps in the process; determining what pricing is needed for each specific construction tasks to be performed and quantities pertaining to each.

 

 

STEP 3 – PRICING THE PROJECT


This process uses two different Excel spreadsheets:


The Worksheet –
An Excel spreadsheet with all the construction sections and tasks listed out with optional overhead and profit markup formulas inserted in the appropriate locations.

The Data Base –
An Excel spreadsheet with prices for material and labor for a wide variety of specific construction tasks.


Based on the descriptions on the Bid Sheet, content from the Data Base will be copied and pasted into the correlating cells on the Worksheet.

EXAMPLE PROJECT:


Using Jane Smith’s Scope of Work for her laundry/sewing room addition we’ll determine the right information that needs to be copied from the Data Base and pasted to the Worksheet. Reference the Smith, Scope of Work here. 


Questions need to be answered like:


Which tasks need to be inserted into the Worksheet? Many of the tasks have options; which to use, will depend on the specifics of the project.


For example; How is the excavation, trenching and landscaping going to be done…with a skid loader, mini excavator, by hand or a combination?

Smith, Addition – Scope of Work, Sitework Section:

 

Data Base:
Copy pertinent cells to be pasted to the worksheet. (highlighted cells)

 

Smith Addition – Worksheet, Sitework Section:
Paste copied cells in worksheet template. (highlighted cells)

 


More questions that need to be answered:
Is the footing going to be formed with wood or poured in the ditch without any forms?

 

Smith, Addition – Scope of Work, Foundation Section:

 

Data Base:
Copy pertinent cells to be pasted to the worksheet. (highlighted cells)

 

Smith Addition – Worksheet, Foundation Section:

Paste copied cells in worksheet template. (highlighted cells)

 

 

After the pertinent information from the Data Base has been placed on the Worksheet it’s time to fill in the specific quantities. This will then provide the prices for the work to be done.

 


STEP 4 – QUANTITIES

On the Worksheet you will fill in the quantity needed to do the work on that line item. This may be lineal feet, square feet, square yards, cubic feet, cubic yards or numbers of pieces. Once this is completed you will now have prices for the Proposal.

 

Notice the highlighted cells in this spreadsheet. These are adjustments made due to the attributes of specific tasks on specific projects. In the case of this project the small size and location of the work in the back yard require some additional work and therefore additional cost.


I know this is a lot of content and information but it’s not as scary as it appears at first glance. The question that you need to ask yourself…


Do I want to be intentional at serving the customer’s needs at a profit or just guess and take a chance?

 


The next step is to bring all the pieces together in a thorough and accurate proposal that will give the customer a clear picture of what they’re getting and how much it’s going to cost. Check back next week for this part of the process.