Is it time to estimate differently? 5 warning signs every building firm should look out for

Running a building firm and all it entails – estimating, customer liaison, site management, managing subcontractors, sourcing materials, health and safety, business admin – is a tough job. However, using building estimating software or an estimating service can make a massive difference to your life and profits. Here are 5 tell-tale signs that you need to estimate differently:

1.      You’re missing or mis-calculating items in your quotes

Do you have your own system in place for quoting for projects and estimating the materials you need? Perhaps using a spreadsheet or price book? If you do, chances are you’re missing the odd material here or there - or your calculations are sometimes a bit off the mark. Inaccuracies like this can be the difference between making a decent profit margin or not. If there are oversights and mistakes creeping into your quotes, it’s a sure sign you need to re-consider how you estimate.

2.      You’re finding it difficult to keep on top of projects

Building firm owners face major challenges in getting the materials and labour on site when they need them. It’s not surprising if things fall through the gaps and delays occur… something has to give. But holdups are costly and no doubt you’d rather avoid them.

3.      You’re working extremely hard but your bottom line doesn’t show it

Perhaps your diary is booked up into 2023 and you’ve added an extra 10% to your fees – but your end of year accounts show that your profit is negligible. This is another red flag, a clear sign that need to work differently. You’re a business owner. You’ve worked in the building industry for many years and your work is of the highest standard. You deserve a buffer in the account, a pension for the future, an asset. Your time and efforts deserve an appropriate financial reward.

4.      You’re struggling to stay on top of fluctuating prices

You recognise that accurate prices are key to accurate estimates so you try your best to keep on top of price changes – but it’s an impossible task. With rising costs, you know you should be factoring inflation into your quotes – but where to start and how to justify it to the client?  

5.      You feel exhausted and stressed

Struggling to sleep? Feeling guilty that you’re not spending enough time with family and friends? Never getting round to the jobs that need doing at home? If you’re working evenings and weekends to stay on top of things, no doubt you’re feeling stressed and exhausted. This is the biggest red flag that things need to change.

If you recognise any of these warning signs in yourself or your business, it’s time so start using estimating software or an estimating service.