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Finalize Project Estimation and Bidding Strategy

3:22
5:01
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At 3:22 in

How to Demolish Buildings - Price, Procedure and Plan

What happens here

While driving, the presenter discusses the business aspect of demolition, specifically focusing on project estimation and bidding. He shares that their initial estimate of 24 hours of labor was revised to 40 hours. This adjustment was due to unforeseen circumstances or the inherent difficulty in precisely estimating demolition time, especially with challenges like machine issues or restricted access. He advises that while experience is crucial for accurate hour estimation, a safer alternative for bidding is to use a formula based on a proven price per square foot for similar demolition projects, helping to ensure profitability and avoid underbidding.

Goal: Review the labor estimation process for demolition projects, highlighting the importance of experience and suggesting alternative bidding strategies for accuracy.

Tools and materials

  • Cost Estimation Software/Templates

What they say

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[Music] so the way we're going to bid that job is we know it's going to take about 3 days with an excavator with the thumb to grab that house pick it up and throw it in the dumpsters typical house will be two to maybe three 40 yard dumpsters we know the cost of those dumpsters multiply three by the cost of whatever you can get your dumpsters for we know it's going to take about 3 days max to uh take that house down so calculate 24 uh hours by whatever rate of pay you want to get for the machine you're going to use now if you're using a smaller machine it may take you a little longer and you'll have a a lesser rate of pay if you're using a bigger machine you may get through quicker now in this case um we estimate a little bit on the high side for time simply because we've got to secure the lower level we can't have any issues with that so um we'd like to make sure that we have enough time put into the proposal to cover our own selves uh the other part of The Proposal which is a smaller portion of it is the mobilization fee cost money to get an excavator out to the site and back so we'll add an allowance in in this case it's about two 250 bucks is what we usually put into the proposal for moving a piece of equipment to and from a site so uh the total proposal will be one mobilization fee 24 hours times the rate of pay that you want to get for whatever equipment you're using and uh the cost of three dumpsters there's your proposal break it down put it together send it off to the customer that's how we're going to do this job hope that helps have a good one now

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