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Home Remodeling Business

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									          Chapter 13
Estimates for Remodeling Work
                       Introduction
• The remodeling business is different from new-home building in a
  number of ways.
   – The remodeling contractor usually deals far more closely with
     the customer.
   – There are generally no architects or designers between the
     homeowner and the remodeler.
   – Often, there are no drawings to inform the builder what is
     required.
   – The remodeler is dealing with structures that are in place.
       • Much of what is required may be seen and physically measured, but
         some items cannot be properly assessed because they are
         concealed.
   – There is generally more uncertainty with remodeling.
    Contracts for Remodeling Work (1 of 2)
•   Lump sum contracts
    – If the scope of work is well defined and the owner has no wish to get
      involved in the construction process, this is probably their best option.
    – The builder needs an accurate estimate to make a profit because of the
      the risk involved.
•   Cost plus and management contracts
    – This makes it easier to make changes. The owner can even design the
      project as it is built.
    – Builder/construction manager works for a fee.
    – There is less need for an accurate estimate up front.
    – A rough estimate may be called for before work begins.
    – Or possibly, the builder agrees to a maximum price.
  Contracts for Remodeling Work (2 of 2)
• Unit price contracts
   – It is used when the amount of work required is uncertain.
   – Builder will quote a series of unit prices and be paid for the
     actual quantities of work completed multiplied by these unit
     prices.
   – In addition to the cost of the work, unit prices have to include the
     builder’s overheads and profit.
• Combination contracts
   – For example, the builder is paid a lump sum for the main part of
     the work; paid unit prices for underground work; and paid cost
     plus for extra work.
       The Remodeling Estimate
• Steps in preparing an accurate lump sum estimate
  – Clearly identify all the work to be done.
  – Measure the work to be done.
  – Price the work.
• Because scope can be uncertain, estimator needs:
  – A clear outline of what the owner wants
  – A detailed analysis of the existing building
  – A detailed plan of what has to be done, and how it is
    to be achieved
            Measuring the Work
• Measure the work in accordance with the rules
  described in previous chapters.
• Measuring demolition work
   – Work is measured from information available. Where
     information is lacking, the estimator shall specify any
     assumptions made.
   – Dust curtains, temporary partitions, and such are
     described and measured in square feet.
   – See Chapter 13 for further rules of measurement for
     demolition work.
          The Remodeling Takeoff
• Make lots of sketches.
    – To define the existing conditions
    – To outline the new construction required
• Specification notes are also useful to indicate what has been
  allowed for in the takeoff.
• It is important to inform the homeowner about what work is
  included (and not included) in your quote.
• On larger jobs with multiple buildings, it is best to proceed
  building-by-building; then room-by-room in each building.
• Sometimes estimators use a simple checklist to ensure all
  aspects are considered for each room on the project.
• See next slide for an example.
Takeoff Checklist:

1 Floors
2 Baseboard
3 Walls
4 Partitions
5 Windows
6 Doors
7 Bifolds
8 Hardware
9 Ceilings
10 Cabinets
11 Plumbing
12 HVAC
13 Electrical
14 Other Work
    Pricing Labor and Equipment
• In the remodeling sector, much of the work is
  completed by the builder’s own workers.
• Productivity of labor and equipment depends
  upon two main factors.
  – Job factors and labor and management
    factors
                       Job Factors
• Weather conditions
   – Especially roofing and landscaping
• Access to and around the work area
   – Poor access may limit equipment use.
• Size of the project
   – Larger jobs are generally more productive than smaller jobs.
• Complexity of the tasks involved
   – Complicated work will be less productive.
• Location of the job
   – Availability of materials locally, etc.
   Labor and Management Factors
• The estimator needs to be aware of these factors and adjust
  prices according to project circumstances.
   – Quality of supervision
       • Good supervision is very important to attain high productivity.
   – Motivation and morale of the workers
       • High productivity is possible only with good workers.
   – Good tools and equipment
       • Productivity suffers if tools are too old or poorly maintained.
   – Experience of supervisors and workers
       • If supervisors and/or workers lack experience, high productivity will
         be difficult to achieve.
Labor and Equipment Productivities
• Productivity records from past jobs are the
  best source of productivity information.
  – Otherwise, you can resort to publications such
    as Means Cost Data.
• Keep a summary chart of historic productivity
  rates.
• See next slide for an example.
                                   PRODUCTIVITIES
CREWS       CREW MEMBERS                                     CREWS     CREW MEMBERS
CREW A      1.0 Foreman                                      CREW B     1.0 Equipment Operator
            2.0 Laborers

 ITEM        OPERATION                                CREW            EQUIP.               OUTPUT
  1.0    Demolition
  1.1    Remove 1'-0" x 2'-0" Conc. Footing            A          Jackhammers             20 - 24   feet/hour
  1.2    Remove Pad Footings                           A          Jackhammers               6- 8    cu.ft./hour
  1.3    Remove 8" Concrete Wall                       A          Jackhammers             10 - 12   sq.ft/hour
  1.4    Remove 8" Block Walls                         A          Jackhammers             50 - 60   sq.ft/hour
  1.5    Remove Asphalt Shingles                       A           Hand Tools           150 - 250   sq.ft/hour
  1.6    Remove 4" Conc. Slab-on-Grade (not reinf.)    A          Jackhammers             35 - 40   sq.ft/hour
  1.7    Remove Stud Partition                         A           Hand Tools             65 - 70   sq.ft/hour
  1.8    Remove Kitchen Cabinets                       A           Hand Tools             10 - 15   feet/hour
  1.9    Remove Countertop                             A           Hand Tools             25 - 30   feet/hour
  1.10   Remove Vinyl Tiles                            A           Hand Tools            80 - 125   sq.ft/hour
  1.11   Cut Openings in Stud Walls                    A           Hand Tools             10 - 20   sq.ft/hour

 2.0     Excavation and Backfill
 2.1     Strip Topsoil                                 B        Skid-Steer Loader        50 - 100   cu.yd/hour
 2.2     Excavate Trench                               B         Small Backhoe            12 - 20   cu.yd/hour
 2.3     Excavate Pit                                  B         Small Backhoe             8 - 12   cu.yd/hour
 2.4     Backfill Trench                              A&B     Backhoe & Compactors        10 - 14   cu.yd/hour
 2.5     Backfill Pit                                 A&B     Backhoe & Compactors           6-8    cu.yd/hour
          Pricing and Summarizing
• Pricing materials
   – A list of materials can be compiled from the takeoff onto bill of
      materials, or recapped with labor and equipment onto pricing
      sheets as described in Chapter 9.
• Pricing general expenses
   – General expenses should be similar to a housing job.
   – Use a general expense sheet as a checklist.
   – Price the items required.
   – See example (next slide).
• The summary and bid
   – The estimate is summarized and the bid prepared in accordance
      with the principles discussed in Chapter 12.
    PROJECT:          
                         
                       
                   
    LOCATION:     
                 
                     
        DATE:     
                  
                                                                 GENERAL EXPENSES
  ESTIMATOR:       

                               Quantity         Unit Rate   Labor    Unit Rate   Material   Unit Rate   Equip.    Subtrade   Total
                                         Unit    Labor        $      Material       $        Equip.       $          $         $
Project Superintendent             ---             ---       ---        ---        ---         ---        ---        ---     ---
Survey and Plot Plan               ---             ---       ---        ---        ---         ---        ---        ---     ---
Safety and First Aid                2 Mo.          ---       ---      15.00      30.00         ---        ---        ---           30
Rentals:– office trailer           ---             ---       ---        ---        ---         ---        ---        ---     ---
        – toilets                  ---             ---       ---        ---        ---         ---        ---        ---     ---
Permanent Connections:             ---             ---       ---        ---        ---         ---        ---        ---     ---
        – Sewer Connection         ---             ---       ---        ---        ---         ---        ---        ---     ---
        – Underground Wiring       ---             ---       ---        ---        ---         ---        ---        ---     ---
Municipal Charges                  ---             ---       ---        ---        ---         ---        ---        ---     ---
Temporary Site Services:           ---             ---       ---        ---        ---         ---        ---        ---     ---
  – Electrical services            ---             ---       ---        ---        ---         ---        ---        ---     ---
  – Telephone                       2 Mo.          ---       ---      50.00      100.00        ---        ---        ---           100
Scaffolds                          ---             ---       ---        ---        ---         ---        ---        ---     ---
Hoardings                         192 sf         0.25       48.00     0.20       38.40         ---        ---        ---           86
Temporary Heating                  ---             ---       ---        ---        ---         ---        ---        ---     ---
Equipment Rentals                  ---             ---       ---        ---        ---         ---        ---        ---     ---
Truck Rentals                      ---             ---       ---        ---        ---         ---        ---        ---     ---
Cleanup                            ---             ---       ---        ---        ---         ---        ---        ---     ---
   – General site cleanup          ---             ---       ---        ---        ---         ---        ---        ---     ---
   – Final site cleanup           872 sf'        0.10       87.20       ---        ---         ---        ---        ---           87
Project Signs                      ---             ---       ---        ---        ---         ---        ---        ---     ---


                TOTALS TO SUMMARY:                          135.20                168.40                   0.00       0.00         303

								
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