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        Commercial Paint Estimator 7.3a User`s Manual
         Contents
1.                      Page 15   17  Entering Work to the Program                                           Page 18   23  Estimating                                                            2        Page 24   31  Getting Extra Mileage from your Estimate                             Page 32   33    Page 2    Introduction    Congratulations  you have purchased the most comprehensive bid pricing program on the  market  Its use will significantly reduce the possibility of mathematical errors when totaling  your bid and the time involved in looking up production and material coverage rates  You  will always have a very detailed bid with a total breakdown of hours for each step of the job  and an accurate detailed amount of the materials that will be needed  You will be able to  instruct your Foreman or Field Supervisors as to how long each phase of the job should take  and how much material will be needed and then track their productivity to see how well they  are doing  You will also have a detailed breakdown of your overhead as it applies to the job   This will help track each job so that you know not only how this job is doing  but how your  business is performing as well  This will give you the ability to catch problems sooner and  correct the situation if needed  The program is completely user programmable for overhead   materials  and production rates to suit your company and the way you do business  We have  endeavored to include many practical aspects used in the estimating
2.      Let   s set up an example  You anticipate spending  600 on advertising  and your accounting  fees to be  1 500  You have two trucks that with their payment  maintenance  gas  insurance  and licenses will run  15 000 each for a total for the two of  30 000 for the year  Your  building rent is  1 000 per month and the utilities are an average of  450 per month  The rent  and utilities would be  17 400 for the year  You estimate spending  1 200 on office supplies  and  10 000 on equipment and repairs for a total Operations Overhead of  60 700 for the  year  This is an extremely simplified example  your actual Operations Overhead will most  likely contain many more factors     Management Overhead    Line 33  column C  Management Overhead is the salaries of all non productive employees in  your company  Management Labor Cost represents the estimated hours and labor cost  involved in preparing the estimate  supervising the job and all office hours involved in  clerical work for the project from start to finish  This would include the Owner if he or she  draws a salary and does not work in the field and produce work  General Managers   Estimators  Receptionist  Secretary  Bookkeepers  Warehouse Manager  and Project  Managers are all usually non productive employees  These employees may have yearly  salaries or may be hourly paid  They are essential to your operation but they do not directly  produce income     Now we will look at how to set up the program for Management Overhea
3.    Now go back to page    Misc  Hours 31    and delete the 20800 hours that you entered on line  7  Go back to the    Job Setup    page and click save  You have setup the first phase of this  demonstration program  Remember this is only a demonstration and training exercise  Now  let   s run a little test     Page 12    Test Bid    It is important to stress that this program is only as accurate as what you put into it  First you  need to do an accurate and detailed takeoff of the project you are bidding  It can be a field  takeoff from an existing building or from a set of plans  It is best to do your takeoff in  sections  On the exterior of a building you may want to do the takeoff by the side as in the  North side  the East side and so on  On the interior  it is suggested by the room  You will  find that this is easier to keep track of what you are doing and you won   t be as likely to miss  something     Let   s say we are doing a bid on a small new office and it has a Reception room with a GWB  ceiling at 10 feet high  The room is 20 feet long and 13 feet wide  That will give us 66 feet of  wall at 10 high for 660 square feet of walls and 260 square feet of ceiling  Now we have two  offices with tile ceilings at 8 feet high  Office  1 is 14 feet long and 12 feet wide for 52 feet  times 8 feet high for 416 square feet  Office  2 is 12 feet long and 12 feet wide for 48 feet  times 8 feet high for 384 square feet  We have a total of 260 square feet of ceiling  1460  square f
4.   Area   Sum of the 2 triangles    Page 26    Triangle     You could find a variation of this shape in the gables of  buildings  To find the area take the length of the longest side   B  times the height  H  and divide by2 Area   B x H 2 S 2    Circle   e     Circles  Ellipse  Cylinders  Cones  and Spheres are shapes that you  will encounter quite often on buildings and blueprints  They are not  hard to calculate if you know a few formulas  Pi which may be  represented by the symbol z   3 1416  Two other numbers that you  will be using are derivatives of Pi   7854 and  0796  When you see  a number or letter with a small 2 at the upper right hand corner as R  it says that that number  is to be squared or taken times it   s self  Example  5  would be  5X5   25  In the diagram C  represents the Circumference or distance around the circle  D represents Diameter the  distance across  and R represents the Radius or half the diameter  On a blueprint you may  only be able to measure a duct  column  tank  or pipes diameter  distance across  and you  need to know the circumference to find the square feet of its surface     To find the circumference  C   take Pi  3 1416  times  D  the diameter  C  r x D    To find the area of a circle there are several formulas you can use depending on what  information you have  If you know the radius  R  it would be Pi  3 1416 times R squared   Area   m x R     If you have the diameter  D  you would use the derivative of Pi   7854 times D squared   Ar
5.  employee and there is no room for argument  He knows when he   s doing a good job and  when he   s not     Page 32    This also permits another solid management technique     Management by Exception     You  as a manager need only focus your attention on the situations where performance is not  meeting expectations and can let the other jobs be run  without interference  by those to  whom responsibility and authority have been delegated  This conserves your manager   s time  and energy  letting them work where they can be most productive     Now your thinking     Oh No  If a man knows he   s doing real well he   ll want more money      So what  Of course  more money and promotions are eventually expected when performance  consistently exceeds objectives or standards  If the performance is better  then can   t you  afford more  Wouldn   t a raise be a good investment in the future productivity  I can   t think  of a better reason to give a raise     Also the estimate can be readily converted to a budget for controlling a successfully bid job if  it is clearly set forth in terms of man hours and gallons of materials for the various activities  of the job  With an estimate like the one you will create with this program  as opposed to one  which is vague and has unit prices or lumps together several activities with one total labor  figure or dollar cost  it is easy for your bookkeeper to prepare schedule of values  payroll  reports  or material cost records to track your job  An
6.  estimate prepared with this program  will also show your bookkeeper all of the overhead cost  taxes and general condition cost that  went into your bid  As the job progresses your bookkeeper will be able to tell at a glance how  well the job is doing  If a problem has come up you will be able to respond in a timely  fashion  Problems caught early can many times be corrected     Keep your pencil sharp  and    Happy Bidding    Page 33    
7.  of any  product  You must record the real price you pay for the products you use  All of the areas in  yellow are programmable on the fly  It is a good idea however to set them up with the  products and prices you normally use  then you only have to change them if the situation  changes  For example if you normally use Sherwin Williams    products you may want to  enter Prep Rite 200 B28W200 for the primer and Pro Mar 200 E S B20W2251 for the finish  material with the prices you pay for them     In the green squares in column    K    the material coverage rates are pre set at basic industry  standards  Coverage rates can vary from manufacturer to manufacturer on the same type of  product  Paint manufacture product information sheets or there container labels usually  indicate there Coverage rates  However  the listed rates are theoretical and do not take into  account absorption of the substrate  application technique  or waste     Guideline for application waste     Brush  amp  Roll Add _ 5 to 10   Airless spray Add 20 to 25   Conventional spray Add 25 to 30     Paint Coverage Rates by Calculation    You can calculate the theoretical coverage rate specified or indicated by data if you know the  dry film thickness  DFT  of a coat of paint and the percent by volume of solids of the paint   Coverage Rate  SF GAL  equals percent of Solids by Volume times 1604 divided by Dry  Film Thickness in mils   DFT      For example  paint with 38  solids by volume  and a specified dry film
8.  of residential and  commercial work  For those unusual things such as    widgets    there is a section on page     Misc 31     where you can enter the estimated man hours and the estimated cost of the  material  and the price for those    widgets    will be included in your bid total     To my Dad and all the other old timers who  gave me the benefit of their painting experience     Thank you   Les Lieser    Page 3    Programs Table of Contents    Job Setup                     Program Sheet to enter base information for your company   Job Totals                                          Total summary of the job bid   GYP or Plaster Walls 1                           GYP or Plaster wall painting systems   CMU  amp  Wood Walls 2                  Finishing systems for CMU and wood paneled walls   GYP or Plaster Ceilings 3                         GYP or Plaster ceiling Painting systems   Wood  amp  Acoustic Ceilings 4                         Wood and Acoustical Ceiling Systems   Misc  Ceilings 5                     Exposed structure  concrete  and misc  ceiling systems   Interior Steel 6               Painting steel joist  ductwork  conduit  pipe  and structural steel   Prep  amp  Misc  7                Wall covering removal  Drywall surfacing primer  caulking   Door Frames 8                              Finishing hollow metal and wood door frames   Doors Systems 9                             Finishing of hollow metal and wood doors   Windows 10                              Finish
9.  on just a few items to compensate for minimum labor and material   The more frames you enter the cheaper they will get to a limit  For an example the 4 frames  are  49 97 each  10 frames are  43 95 and 100 frames are  40 74 each     Let   s go back to sheet    Job Totals    and look at the bid we just created  It should be self   explanatory  Lines 8 through 10 in column J you will see the total estimated materials at   236 55  the miscellaneous materials at the programmed 5  and the sales tax at the  programmed 7 60   This 5  for miscellaneous materials may be ok for larger jobs but  would be light for a small job like this one  As you go down the sheet  you will see how the  program builds your bid  Lines 22 through 28  column J shows how your Field Labor of 21  hours applies  Lines 30 through 33  column J shows how Management Labor of 8 hours  applies to this job  Line 39 column J shows Total in House Job Cost with the 25  markup  added for  1 167 70  Line 45 column J is the Total of Sub Contract Work in the Bid  In this  case  there were no sub contracts  Line 48 column J will show you your total bid with Sub    Page 13    Contracts add when relevant  In column    L     you will see a    Yes    telling you  which pages   you have made entries on and may want to print out  You only need to print the pages that  pertain to your bid     Remember this is only a test or setup bid and the production and coverage rates may not  represent what your company is use to  and the mat
10.  profit margins     Profit    At the top of the page     Cost of Labor per hr  with Overhead     line 8  column I  you will see  that your cost of labor is  31 80  This labor has no profit but it would pay all the bills and  salaries  This is your break even rate  In the     Enter the percentage of Gross Markup to be  used     lines 9 and 10  column I  enter the percent of mark up for profit that you want to use   For this example  place 25  in the yellow square  Now you will note the    Total Selling Price  of Labor with Profit    has changed to  39 75 reflecting your labor with profit  This is the rate  that you would sell your labor for  Profit should normally generate from all items of cost   that is labor  material  overhead  and other job cost  This is the way this program will apply  profit to your bid  Any one of these factors not being clearly defined will distort your profit  figure     Let   s take a minute to look at what profit is  The Webster Dictionary says profit is     excess of    income over expenditures        income from an investment or transaction        an advantage or  29 66    benefit derived from an activity        making money on something     and that is precisely why  you are in business  to make money     Page 11    Hypothetically without profit all bills would be paid  all salaries would be paid and every one  would go home happy  However this is not a perfect world and estimating is not an exact  science  It is an estimate of what it will take
11.  the Sub Contractor  With out adding this you would be working for nothing  Always get a    Page 22    commitment of price from your sub contractor before you bid  It would be best that you get  this commitment in the form of a written contract    At Travel Expenses  the Federal Government has requirements that under some  circumstances you have to pay travel time to your employees to and from work  You need to  check these regulations to see how they may apply to your company  If you were doing a job  in another city or state where it is too far to travel every day  you would most likely put your  crew in a motel and stay there during the week  For an example lets say it will take four  hours to get from your place of business to the job  You will have a six man crew working  on this job  and it will take two weeks to finish but you will be coming home for the  weekend  At Travel Hours  you will enter the four hours to get there  At Number of  Employees Traveling  enter six for the number of men making the trip  At Total Travel  Days  enter two for the two trips to the job to finish in two weeks  The program will  calculate the cost for both ways to and from the job  If the travel time is to be paid at a    different hourly rate then your stander rate  enter that rate at G 34  otherwise your stander  hourly rate will be used for travel pay  At Perdiem  Housing and Parking the program will  enter the number of days in the job  Example  for Perdiem in column    T    you would 
12.  thickness of two mils  would yield a theoretical coverage of 305 SF GAL  38 x 1604   2   305 SF GAL    To be accurate you need to check the material coverage specifications for the manufacturer  of materials you are using and program them into the green squares  So take the time and go    Page 15    through the program and fill in the products that you normally use and the prices that you pay  for them  You will want to fill in a detailed name of the products so that your job foreman or  project manager will be able to know what you bid  Once you have entered all the products  and the prices you pay for them in to the program  save it  You will want to upgrade the  prices when ever your supplier changes your cost     Production Rates    The production rates in the green squares in column K are preset based on industry standards   They are user changeable to fit your needs or situation  When any particular form of work is  performed on a routine basis  the experience and increased skill may result in increased  production rates  If or when you establish that a production rate is not right for your  company and you always have to change it  then you would probably want to change the  program to represent the way you do business most of the time     On the right side of the screen  in the blue shaded area at the top of some pages  you will see  a notice regarding the use of man lifts  rolling staging  extension ladders  etc  With this notice  is a percentage of deduction that s
13.  to do the job  Mistakes will be made and jobs  will not go exactly as planned  You will need a profit margin as a buffer to cover this  You  will need profit to grow your company  buy new equipment  to build a reserve to cover those  mistakes and unforeseen problems  The owner of the company has their assets invested in  the company  Invested capital includes all money in fixed assets  working capital  and the  value of intangibles  such as a trained organized crew  goodwill  business contacts  technical  competence  and so forth  The owner needs to be rewarded for their investment  As the  dictionary said     Income from an investment     Don   t make the mistake that you can leave  profit out of your bid  or set the profit too low just to get jobs  You won   t be in business long  doing that  but don   t get greedy either  Set a realistic profit margin that will cover the things  we have been over and allow your company to grow  prosper and the owner to make a  reward on their investment of assets     Setup Check    Let   s run a quick check and see how this plays out  Let   s go to sheet    Misc  Hours 31    and  on line 7  column C  at    Enter Est  Labor Hours    enter the 20800 hours that we projected that  our 10 employees would work in a year  Now go back to the    Job Totals    page and we will  see how this all adds up  Starting on line 7  column D  we see the    Total Estimated Man  Hours in Job    of 20800  Going on down the page  we see that our average labor ra
14.  you may have a job that only calls for primer and one finish coat  Just change  the two to a one  As you are pricing your job if you see a production rate that is either too  slow or too fast for the particular job you are doing you can fine tune it to suit the situation   Go to the green squares in column K and change the rate of production to what you want it to  be  For an example Accent Walls  you would undoubtedly hand cut and roll the finish coats  at a production rate of 200 to 350 square feet per hour  however you may very likely spray  the primer along with all the other walls thus the priming production rate would be in the 500  to 800 square feet per hour range  Another example  You have 1200 square feet of textured  walls in an occupied area where spray application would not be practical  You would enter  the 1200 square feet and at    Description    you might enter     Textured walls roller applied  paint     If priming is required  be sure there is a one or two in the yellow square under Primer  on the left side of the screen for one or two coats of primer  In the yellow square at    Finish      you would enter a one  two  or three for the number of finish coats desired     As you can see the system is very user friendly and gives you the ability to set the production  and coverage rates the way you want them  This also makes the user responsible that the  rates are set right  Be sure the production rate you are changing is achievable  If it   s too fast  you w
15. Average Painters  Labor Rate of  17 with the Variable Overhead of 20 78  the maximum amount you would  want to pay a subcontractor would be  20 53 per hour     For this sample setup do not change the pre programmed percentages  just leave the figures  the way they are  You will want to change them however when you setup for your own  business     Fixed or Operations Overhead    Line 32  column C  Operations Overhead that is also referred to as Fixed Overhead  The  term    Fixed    is a little misleading  Actually  all cost can vary if sales volume fluctuates  significantly from what is normal or expected  Cost referred to under this heading is simply  less variable than other overhead costs  Tools and Equipment  such as brushes and rollers  may be considered as Variable Overhead by your accountant with the though that if you did  not have employees you would not have the cost of these items  I prefer to consider them as  Fixed Overhead and find it easer to track them as such  Management salaries are also usually  considered as Fixed Overhead  Management Overhead is the salaries of all non productive  employees in your company  This would include the Owner if he or she draws a salary and  does not work in the field and produce direct income  General Managers  Estimators   Receptionist  Secretary  Bookkeepers  Warehouse Manager  and Project Managers are all    Page 8    usually non productive employees  These employees may have yearly salaries or may be  hourly paid  They are e
16. Commercial Paint Estimator 7 3a User   s Manual    Published By        5106 Kiowa Dr   Greeley Colo  80634    While every reasonable precaution is taken to ensure the accuracy of this program and the  information contained in this publication  Front Range Coating Consultants  Inc  accepts no  liability for loss or damages of any kind resulting from the use of materials or information  contained herein  or from Estimator error or misuse in the user setup or user programming of  this program  If you disagree with any of the materials  information or the industry standard  production rates used as a base line with this program  do not use them  Change them to  what you believe they should be  By using them it will be assumed that you agreed with  them  Unauthorized reproduction or distribution of this program  or any portion of it  may  result in severe civil and criminal penalties and will be prosecuted to the maximum extent  possible under the law     Copyright    2007   2013 L  Lieser All Rights Reserved  Copyright infringements will be enforced and prosecuted     Page 1    Contents    Introduction                                          2222 22 22      Page 3   3  Programs Table of Contents                                                  Page 4   4  Programming Introduction                                                   Page 5   5  Programming the Setup Sheet                                              Page 6   14  Setting up the Work Sheets                            
17. an arbitrary or inaccurate  figure to cover their overhead cost  This will often result in an inaccurate profit figure  The  contractor must establish precisely what his overhead cost will be for the year ahead  This  can be done accurately by following this simple procedure  This program uses overhead  broken down into three categories  Variable Overhead  Operations Overhead  and  Management Overhead  Following is a breakdown of each category and how to determine its  value and how to set it up     This information may be considered confidential and the general manager or the owner may  not want to reveal it to the estimating department  Your accountant  bookkeeper  or the  owner themselves can follow the following instruction and generate the percentages that your  estimating department will need to setup the program     Page 7    Variable Overhead    Lines 20 through 30  column C  fall into the category of Variable Overhead  Variable  Overhead cost is that overhead cost generated by your workers themselves  a cost which you  would not have if you did not have employees  Variable Overhead can be broken down into  two basic categories  lines 20 through 25 represent Labor Burden which would include  FICA  Medicare  FUTA  SUTA  Workers Comp  and General Liability  and lines 27 through  30 represent Fringe Benefits which would include Health  and Disability   Life insurance   Retirement Contribution as in a 401K  and Paid Vacations  Labor Burden is mandatory to  the cost of you
18. and  understood at the time of the takeoff  and accurately summarize the measurements used  A  good estimate is neatly organized and clearly written so that it is easy to read by people other  then the estimator  It is the responsibility of the user of this estimating program to correctly  and thoroughly study each individual project and bid accurately to the specifications with  labor  material  overhead  and profit rates appropriate for your company and the region where  you do business     As stated earlier the use of this program will significantly reduce the possibility of  mathematical errors when totaling your bid and the time involved in looking up production  and material coverage rates  You will have a detailed breakdown of hours  amounts of  materials  cost of materials  and cost of all other overheads as they apply to your job  This  will help you accurately bid more work  have a better understanding of the job bid  and be  more profitable     Following are seven steps that should be included in the estimating process     1  Identifying all items and surfaces to be finished    2  Measuring or counting all items and surfaces to be finished    3  Calculating the labor cost to perform the job    4  Calculating the cost of material to perform the job    5  Identifying and estimating additional job cost such as rental equipment  bonds   subcontracts  etc    6  Adding proper overhead cost    7  Applying the desired profit     Page 24    Following are nine rules of measu
19. argin you desire  It is strongly suggested that you go through this  entire sample setup before setting up your own company  It won   t take very long and it will  give you a good idea as to how the program functions  For the sample setup please use the  figures and rates suggested so that you can see how the program works  It   s not hard  just  follow the directions and examples in this user manual     As you move through the program  you will want to be mindful of the help tips on the right  of each screen  On a small screen computer you may have to scroll to the right to see them   They will usually be in columns K through Q and will give you advice and directions for that    page     If you get this       or this  VALUE  in the program  it is an error message  Don   t panic   you have just accidently entered a letter or punctuation mark in a number entry area  This  can occur when entering the price of material if you mistakenly enter a comma instead of a  period between dollars and cents  Just go find your mistaken entry and remove it  the  program will correct itself     Page 5    Programming the Job Setup Page    At the top of the page     Job Setup    is    Job Name  Estimator  and Date     These are not part  of the initial setup but will be filled in for each job when bid  By filling in these fields  they  will be displayed on all pages identifying them as part of that bid     Labor Rates    Calculating your break even rate can be a time consuming and somewhat diff
20. d  For an example  let   s say the Owner draws a salary of  75 000 a year and has a Secretary Bookkeeper with a  salary of  30 000  An Estimator at  45 000 and a Project Manager with a salary of  40 000  for a total of  150 000 for Management salaries projected for the year  At this point we are    Page 9    going to calculate an average hourly rate for our Management employees  This is done a  little differently than it was with the hourly people  Let   s take the  150 000 salaries package  and divide it by the total hours for our Management team  Four employees at 2080 hours per  year give us a total of 8320 hours  which equals  18 03 per hour  Enter this rate on the  Program Sheet at line 37  column C     Average Management Labor per Hour     This hourly  rate will be used by the program to budget the management hours to each job  These salary  packages include any vacations you may offer  You are in effect just giving them time off  with pay and it does not cost you any extra as it would with hourly employees  Now at lines  37 through 45 in column C  you need to add Burden and any Fringe Benefits that you may  offer to your Management personnel  These are very similar to your hourly employees   FICA  Medicare  FUTA  SUTA  Work Comp  General Liability  Health  Disability   Life   and any 401K contribution you may offer  Some of these rates may be different then the  hourly employees because their exposure is less so be sure to get actual rates from your  insurance agent  F
21. ds  lintels  vents  roof ladders  caulking  and RTU units   Fencing  amp  Decks 28                            Fencing wood decks  stairs and railings   Ext  Pipe  amp  Steel 29                           Exterior pipe and structural steel systems   Ext  Steel Stairs 30                      Steel stairs  guard rail  and pipe railing finishes   Misc  Hours 31                   Enter miscellaneous work not covered elsewhere in program   Misc  Eqpt  Subs Travel 32                  Equipment  subs  mileage and misc  job expenses     Page 4    Programming Introduction    In the following tutorial you will be taken through a sample setup for a small painting  company  Many small  and sometimes not so small  companies do not have a good  understanding of how their overhead affects what they need to charge per hour to make a  profit  All too often  an arbitrary markup figure is used with the hope that it will cover the  overhead and leave something for a profit  With out establishing what your overhead is  and  what your break even hourly rate is  you are only guessing at what you should be charging   Guessing can either leave you short on your estimate to the point where you will lose money   or your bid may be higher than it needs to be and you may not get the job  In the economy  we live with today  you cannot afford to guess  you need to be right on the mark  This  program will take the guesswork out of your bidding process and show you what you need to  charge to make the profit m
22. e  very large  at least 60 square feet each  If the wallpaper to be used has a pattern repeat  you  will need to consider it in determining your ceiling height  or more appropriately  your sheet  length  Example  The plans show a ceiling height of 8 feet which is 96 inches  The specs  show that the wallpaper has a pattern repeat of 18 inches  Divide the 96 inches   height of  walls in inches   by the 18 inch repeat  you get 5 33 repeats  You will need six repeats or a  9 foot sheet to reach the ceiling  Take the18 inches repeat times the six repeats needed   108  inches or 9 feet  You are going to have 12 inches of waste on each sheet with this repeat   Now you need to select the type of wallpaper material being used from the chart on the right  side of your screen  Once determined enter the production rate for that material in the green  square at  Wallpaper Labor at SF HR      For  Borders 20   Wallpaper borders are taken off by the linear foot  Borders are usually    sold in 5 yard spools but may come in 10  20  or 30 yard spools also  You will need to enter  the size of spool that the border material you are using comes in  Enter the production rate of    Page 21    either 45 LFH  linear feet per hour  for 2 to 6 inch borders  or 35 LFH for 6 to 12 inch wide  borders     At  Fabric WC 21   Enter the width of the material to be used in inches  Fabric materials  may come in widths from 36 to 60 inches wide  On the right side of the screen at   Fabric  Wall Covering Installa
23. e 16  column I  enter a percentage for miscellaneous materials  Items such as caulking   masking  and solvents are not directly covered in the bid  This percentage of markup on the  material is to cover these items  which will generally run between 5 and 15 percent of the  overall material cost on any given job  You will want to track this percentage and adjust it as  necessary  Typically  smaller jobs will need to be at a higher rate than larger jobs  For this  example  we will use 5      Labor Overhead    Contract painting can generally be considered a labor intense business  Labor  in most cases   is the most important component  often the highest single cost item  No contract can be  performed without labor  however  it is entirely possible to perform a contract with little or  no material cost  There are situations where the owner may furnish most if not all of the  materials needed  Labor is by far the best measurement of time  therefore  the best  measurement in determining the degree of completion of any given job     Because of these and many more facts relating to the importance of labor  labor is the most  desirable method with which to monitor overhead or operating cost  By applying overhead  cost as a percentage of labor cost  the contractor has a better opportunity to measure and  recover his overhead     Labor  material  and other job costs are generally very tangible and recognizable cost and  thus easily identified  Many contractors make the mistake of using 
24. e the surface area  When a closely fabricated item is attached to a  framework finished in a different color or material  measure the framework  separately as described in rule 2    Rule  8  When a small opening interrupts a continuous surface  the opening is disregarded  and considered part of the continuous surface  Any openings extending from  floor to ceiling and exceeding five feet in width should be deducted  All  openings 100 square feet or larger are deducted    Rule  9  Cabinets  tubs  showers and other items that restrict movement or access shall not  be deducted from measurements of total surface area     It is best to do your takeoff in sections  On the exterior of a building you may want to do the  takeoff by the side as in the North side  the East side and so on  For the interior  it is best to  do each room separately  You will find that this is easier to keep track of what you are doing  and you won   t be as likely to miss something     Following are some formulas and take off information that may help in taking off a project   If you are new to estimating it is strongly recommend that you acquire a copy of PDCA   s  Cost and Estimating  Volume 2  Rates and Tables  PDCA  Painting and Decorating  Contractors of America are a great organization that you may want to join  This organization  has done wonders to improve the painting industry over the years and their ongoing training  would be an asset to any growing painting company     Page 25    Formulas for Geo
25. ea    7854 x D     If you know the circumference  C  you would use another derivative of Pi   0796 times C  squared  Area    0796 x C     Cylinder or Tank  C 4     The area of the top or bottom of a tank or cylinder would be  found using one of the formulas for the area of a circle  To  find the area of the sides of the tank take the circumference  C   times the height  h   Area Cxh   If you just know the diameter the formula for the area of the  sides of the tank would be  Area axDxh If needed you would add the area for the  ends  You would find the area for pipe or duct the same way just substitute length for height     Page 27    The area of an ellipse is easy to find with the right formula   Area    7854 times height  m  times width  M   For an  ellipse  a circle  or any egg shaped figure find the area of the  box that it will fit in and times it by  7854 and you have the area of your ellipse  circle or egg    shape  With the formula for the area of a circle   7854 x D   when you square D you are  basically finding the area of a box  Area    7854 x M x m    To find the perimeter  the distances around the ellipse  add M   m and divide it by 2  then  times by Pi  3 1416  Perimeter   7 x  M   m  2     Sphere     o    A sphere shape may be found as a tank or a decorative  object on a building  The area is found by taking Pi   3 1416 times the diameter squared  Area   7 x D     Cone     You might find this as a steeple roof on a Church  The  surface area of the cone shape excl
26. eet of walls and will say there are 4 hollow metal door frames to paint     Now that we have our takeoff let   s enter it into the Estimating program and see what it is  going to cost to do this job  how many hours it will take  and how much materials will be  needed  At the top of the Setup Sheet enter Test Bid for the job name  You can put in the  date and an estimator name if you would like  We will assume that this job is not prevailing  wage and leave that blank  The program is already setup with  17 for average painter labor  rate and all of our overheads  We have previously entered 25  for our profit margin and for  this test bid let   s leave it that way  Now go to sheet    GYP or Plaster Walls 1    and at line 6  enter the square feet of the wall  1460  You will see we are priming one coat and two finish  coats  Priming will take 5 hours and need 4 gallons of primer  Two finish coats will take 9  hours and 7 gallons of material  The information should be self explanatory  The cost Per  Square Foot of  44 cents is before profit and the Selling per Square Foot of  55 cents is with  the profit added  On sheet    GYP or Plaster Ceilings 3    at line 6 enter the 260 square feet of  the Reception room ceiling  Go to sheet    Door Frames 8    and enter the 4 Hollow Metal  frames on line 6  You will note that we are not priming these  Most Hollow Metal frames  are pre primed  When you start using the program you will see that some programs  like this  one round up the amount
27. enter  what you are planning to pay each man for perdiem  Perdiem is to offset living expenses  while in the field such as for meals  At housing  you would enter the cost of a Motel room   If two men were sharing a room that is to cost  100 00 per night  you would enter  50 00 or  half the cost for one man  At Parking  enter the total cost of the parking permits or passes for  the number of men driving to the job  You may have five or six men on the job each day but  they will travel in just two vehicles  you only need two permits     Differential Pay  If a job requires shift work such as night work  you may want  or be  required to pay a differential or higher rate per hour for this work  At line 52 column    C      enter the total estimated hours affected by this work  and at line 52 column    T    enter the  dollar amount per hour to be added for this work  Example  the job has 40 hours of work at   17 00 per hour  8 hours of the job has to be done at night and it will pay  20 00 per hour for  the night shift  At line 52 column    C     you would enter the 8 hours and at line 52 column    T     enter  3 00  the extra differential pay per hour require  Another example  some prevailing  wage jobs require you to pay a higher rate for spray painting  You would enter the estimated  hours in your bid for spray painting and the amount of extra hourly rate required to cover  spray painting     As you can see all sheets work pretty much the same and they do have helps on the right 
28. enue generate will be  416 000  This is the revenue amount you will use to  calculate your Operation and Management Overheads  You will want to track the volume of  work being done and if you are not meeting the above criteria  you will need to recalculate    your Operation and Management Overheads or you will not meet your yearly demand for  these categories           In our example  we determined we were going to have a Fixed or Operations Overhead of   60 700  Divide this amount by the  353 600 of revenue and you will get 17 17  for your  Operations Overhead  The Management Overhead of  173 670  remember we had to add the  15 78  burden to the  150 000 salary package  Divided the  173 670 by the revenue of   353 600 gives us a Management Overhead of 49 11   Add the Operations Overhead of  17 17   the Management Overhead of 49 11  and the Variable Overhead on our employees  pay of 20 78  that we determined earlier and we have our total labor overhead of 87 06    On the Job Setup Sheet at Operating Overhead  line 32  in column C  enter the 17 17   At  Management Overhead  line 33  column C enter 49 11      Now remember this is only an example  Do not use these figures in your own business   In order to be able to establish an accurate hourly rate to charge your customer and to be able  to control your profit you must determine what these overheads are  Accurately establishing  these overhead rates will make it possible to create a break even rate to build on and control  you
29. erial prices are fictitious  You do not  want to use this program for a real bid yet  Now delete the amounts we just entered at walls   ceilings  frames  and the job name on the Setup Sheet  The    Job Totals    sheet should be  blank except for average labor rate on line 9 column D     Now would be a good time to go back and put in the real figures that represent what  your company will need for the next year or until the end of the period you are working  in now  Just follow the instructions that we just went through for the demonstration   only use real figures that represent your business     Page 14    Setting Up the Work Sheets    Now assuming that you have gone back and programmed the Job Setup Sheet for your  company  we will take the time to setup the rest of the program to work the way you do  business so you can get started bidding work  There are many factors that will affect  production and material usage rates achieved on any particular job  The tables contained in  this program may need to be modified to fit a particular contractor   s experience and the  company workforce   s ability     Materials    Looking at sheet    Walls 1     you will see that under the heading of    Primer    it just lists     Latex Wall Primer    and at a cost per gallon of  13 89  At    Finish    it just lists    Latex E S     at a cost of  16 72 per gallon  NOTE  All of the prices that come pre programmed are  only for demonstration and test purposes and do not reflect the real price
30. g  Each sheet will calculate the man   hours and labor cost to install the wall covering that that sheet represents  However  if you  price the installation for a sub contractor the estimated man hours and labor cost will not be  displayed on the Job Totals page  Instead  it will be shown as a Sub Contract on line 41  column J of the Job Totals page  On line 44 column I  of the Job Totals page a percentage of  your Management Overhead will be added to the amount of sub contract  Management  Labor Cost represents the estimated hours and labor cost involved in preparing the estimate     Page 20    supervising the job and all office hours involved in clerical work for the project from start to  finish  Whereas the cost to manage sub contract work may not be as high as managing in  house cost  you can enter a percentage to modify your Management Overhead as it is applied  to the sub contracts in the program  For an example  if you only want to apply a third of your  Management Overhead to your sub contracts  On the Job Setup page at line 33 column G   you would enter 33  at percent to modify  Using the pre entered example of Management  Overhead of 49 11  modified by a third     33      16 21  would be applied to your sub   contractors for your Management Overhead cost     Adding this overhead to the sub contract covers the cost of biding the job  acquiring the  contract  collecting the money  supervising the job and paying the Sub Contractor  Without  adding this  your managemen
31. hould be used if these systems are anticipated to be used on  the job you are bidding  The use of this equipment can have a significant impact on the man  hours for your job  You may also find notices at some sections for a percent of production  rate decrease for such things as breaks  downtime  cleanup  and etc  Be sure to take their use  into consideration when setting production rates  A fifteen minute morning break  a couple  bath room breaks and cleanup at the end of the day are not productive  but they will be part  of your work day  If your painters can produce at 400 square feet per hour they would  produce 3 200 square feet of walls in eight hours  If they take the above break  go to the  bathroom  and use 10 or 15 minutes to cleanup at the end of the day they will lose about 45  minutes  If you deduct 10  you will have a production rate of 360 square feet per hour for  2 880 for the day which will compensate for the 45 to 50 minutes of downtime  Industry  standards production rates do not take in consideration for down time or prep     Now if you have programmed the Job Setup Sheet for your business  entered the materials  you will be using  entered the price you pay for them  and you accept the production rates or  have changed them to what you believe they should be  you are ready to price your work     It is recommended that each estimator in your company have their own password to protect  their work  This password prevents an unauthorized person from changing 
32. icult task   Contractors who have tried to tackle this manually say it can take them many hours if not  days to complete  Once the calculation is complete  they discover that one change in their  business can cause them to start the process all over again  Meaning wasted time and effort   We also hear from contractors who say that they try to calculate it but are not sure where to  start or what to include in their break even rate to get an accurate number     Your break even rate consists of your average direct labor rate  burden rate  any fringe rates  that may apply  and your overhead rate  Our estimating program calculates all these numbers  and takes all the guesswork out of what to include to get an accurate break even rate for your  business  With out an accurate break even figure you have no idea what to charge let alone  what your profit might be     Line 8  column D  Average Painters labor rate per hour is part of your initial setup and is the  average hourly rate of pay for all field employees including working field Foremen  These  are the employees that do the work and produce the income for your company  It would be  very impractical if not impossible to calculate the hourly rate for each employee into a bid  so  we use an average labor rate  For an example  let   s say you have ten employees  two  Laborers at  13 00  two Apprentices at  14 00  two Journeymen at  18 50  two Master  Painters at  19 00  and two Foremen at  20 50  Your total hourly rate is  170 00 
33. ing of hollow metal or wood windows   Wood Trim  amp  Moldings 11                              Finishing of moldings and trim   Cabinets  amp  Beams 12                   Finishing of cabinets  shelves  beams  and columns   Wood Stairs 13                   Finishing wood guard railing  hand rail  skirts  and risers   Steel Stairs 14                    Painting steel guard railing  pipe rail and stair systems   Sealed or painted Floors 15                         Sealed concrete and painted floors   VWC and WC Primer 16                              Vinyl Wall covering installation   VWC 17                                  Continued Vinyl Wall covering installation   Wallpaper 18                                                  Wallpaper installation   Wallpaper 19                                    Continued Wallpaper installation   Borders 20                                           Wallpaper Border installation   Fabric WC 21                                    Fabric Wall Covering installation   Misc  WC 22                Wood Veneers and spray on multi color coatings installations   Ext  CMU 23                             Exterior concrete  CMU  and stucco finishes   Ext  Siding 24                                              Exterior siding finishes   Ext  Trim  amp  Soffits 25                               Exterior trim and soffits finishes   Overhead Doors  amp  Prep 26                            Overhead doors and surface prep   Bollards  amp  Misc  27             Bollar
34. ing the job in order to earn a maximum profit     When the job is contracted the estimator will need to have a transfer meeting with the job  foreman or project manager and go over the estimate  When an estimator looks at the job  he  envisions it being accomplished in a particular manner  Ideas may be generated on  scaffolding  sequence  method of application  crew size  etc  If these ideas are communicated  to the foreman or project manager  they are given an approach which they can take or use to  improve upon  If the estimator has filled out the estimating sheets with notes and materials  by name  the foreman or project manager will have detailed description of each phase of the  job with projected man hours and the gallons of the specified materials needed to do the job   This information combined with the production and material consumption rates used will  help set goals for your employees so as to complete the job as scheduled     Once your overall goal is set you can work with your employees to develop individual  objectives which will meet that goal  Knowing how many man hours it should take to do the  job you can inform your employees what their production rate need to be  The production  rates used throughout this program are all based on industry standards  These are rates that  are tried and true and can easily be met by any qualified painter  The inability to meet a  production goal is usually not that the rate is too high  but that an eight o clock starting ti
35. lude the bond cost in that work also     On the right of the screen in column    L     you will see a    Yes or No    telling you which sheets  you have made entries on in preparing your bid  This will guide you to the sheets you used  for review or that you may want to print out  You only need to print the pages that pertain to  your bid  On a small screen computer  you may have to scroll to the right to see all of the  details     Work Entry Pages    The work entry pages are all typical in how you make entries on them  We will look at     GYP or Plaster Walls 1    for the typical and then examine some of the other pages that  work a little differently  At    GYP or Plaster Walls 1     you have GYP or Plaster Wall System    Page 18     1 through 5  These five systems can be set up all alike or if you have other systems you use  often  such as a no VOC material or maybe an S G system  you can program for those in  advance  Or you may want to set them up for different production rates as in brush and roll   or spray application  They can also be setup for Accent Walls or for Walls with an Enamel or  Epoxy finish  If you followed the suggestion on page 14 at materials and entered the product  you normally use  your basic materials and there prices are already programmed in for you   If your need to change one for a particular job just click in the yellow area and you can type  in the change  In some situations you may want to change how many coats you will apply   As an example
36. me  may not happen until around eight twenty  A fifteen minute break ends up twenty and a thirty  minute lunch stretches out to forty five minutes  Now add in four or five bathroom breaks at  ten to fifteen minutes each and a half dozen smoke breaks at five minutes each and you have  lost two hours of production  If you want someone to put paint on at the rate of 400 square  feet per hour you would expect him or her to produce for at least 7 hours at 400 square feet  for a day   s work of 2 800 square feet of painted wall  In the above scenario  they only  produced 342 square feet per hour for a total of 2 400 square feet  because they only worked  about 6 hours     It is extremely important that the measurement of progress toward the goals can be made  impartially and quantitatively in terms that are readily apparent and understood  such as  square feet  number of doors or frames  lineal feet of trim  etc  Ideally  an employee should  be able to judge his own progress toward a goal  For instance  if his goal is to paint at the  rate of 400 square feet per hour to a good quality standard  he can determine his own  progress by measuring the area and by comparing quality to visual standards  There should  be little  if any  difference of opinion possible about whether or not the goal is being  accomplished  You won   t be put in the position of seeming arbitrary because you    ve set up a  very subjective system of measuring progress  In this way  feedback is automatic for the 
37. metric Shapes     Geometric shapes may be found all over a floor plain or a building in odd shaped rooms   walls and exterior details  They are really not hard to accurately take off if you know a few  formulas     Parallelogram     The Parallelogram along with a Rectangle and a Square are       B8      similar in how you would find the square feet or the area    With the Rectangle  Square  and Parallelogram The opposite sides and opposite ends are of  the same length and opposite angles are the same degrees  To find the area take the length   B  times the height  H   Area BxH         e         Trapezoid     The Trapezoid is different from the Parallelogram or   aren B cag  Square in that all sides and ends may have different   lengths and all the angles may be different however it will have two parallel sides  If you  stood this shape on its end you might encounter it on a stair wall  To find the area add  B   and  C   the parallel sides  and divide by 2 then multiply by  H  the height or width  depending how the figure is positioned  Area    B C  2 x H     Basically what you are doing when you add B plus C and divided by 2 is finding the average  length  When you multiply the average length by the height or width you get the area of the  figure     Trapezium     Where as a Trapezium is similar to a Trapezoid in   appearance there are no parallel sides  To find the area of a   Trapezium divide it into two triangles and fined there areas as in the example for Triangles  below
38. ncrete lids or  ceilings     Page 19    Page    Int  Steel 6    covers Open Web Joists  Duct Work  Conduit or Pipe and Structural  Steel systems  When measuring Open Web Joists or similar items to find the square feet to  finish  multiply the total length by the depth   height   then by 2 for both sides  Pipes  rods   structural steel and other items to be painted whose circumference or perimeter are less then  one foot is measured as one foot  otherwise the actual measurement is used  No object is  considered less then one linear foot long and less then one square foot per linear foot        Page Prep  amp  Misc  7    covers a verity of prep situations from Wall Covering Removal   Floating or Skim coating Walls  Drywall Surfacing Primer  Caulking  Door and Lockset  remove and install to Masking of Sprinkler Heads  As always  you will find helps on the  right side of the sheet        Door Frames 8  Doors Systems 9 and Windows 10     These sheets are used to estimate  interior and exterior frames  doors and windows  On the right side of the sheets are  instructions to setup for a verity of different types of units        Wood Trim  amp  Moldings 11     Chair Rail  Crown Molding  Base  etc  up to 12 inches wide  are considered to have one square foot per linear foot  Over 12 inches the actual  measurement is used to calculate the square foot of surface to finish and that square footage  is entered in the program instead of the linear footage        Wood Stairs 13 and Steel Stai
39. o find your    Average Employees Hourly Rate     you would add the  9 62 to the two  employees at  17 00 each for a total of  43 62 and divide by 3  the two employees and you   for an Average Employees Hourly Rate of  14 54  Let   s do a quick check   43 62  the  average hourly rate for the two employees and the owner times 2080 the working hours in a  year  equals  90 729 60 payroll for the year  The employees at  17 00 per hour earn   35 360 00 each for a total of  70 720 00 for the year   90 729 60 total payroll minus the   70 720 00 for the two employees leaves  20 009 60  which is the 50  or half year salary of  the owner     Converting to Percentages    Now let   s convert the Operations Overhead and Management Overhead to percentages that  you can use in this program  For this example we used ten employees with an average wage  of  17 per hour  There are 2 080 working hours in a year so these ten employees will work  20 800 hours at  17 to generate  353 600 in revenue  As a painting company you are selling    Page 10    labor  You may include some material in your bids to your customers but in reality you are  only selling your labor and that is where all your overhead needs to come from     NOTE  For a company subbing out all its labor you need to calculate what revenue the  subcontractor will generate over the year  Example  your sub contractor charges  20 per  hour and he has 10 employees that you have determined you will be able to keep busy over  the year  The rev
40. on   t be able to get the work done in the time bid and you will lose money  If it   s to  slow it will make your bid higher than it should be and you may not get the job  As stated  earlier  always pay attention to the help information on the right side of your screen     On pages    GYP or Plaster Walls 1 and GYP or Plaster Ceilings 3    the production rate of  90 to 100 square feet per hour for Repaints  includes one coat of paint in an occupied area of  a home or office  having to protect floors and surroundings  with minor wall prep and clean  up  The author has found this formula to be very affective however as stated earlier it may  need to be adjusted or modified to fit a contractor   s experience  Add coats would be at  industry standard production rates     Page    Misc  Ceilings 5    at Exposed Structural Lids  this would typically be a metal deck  with exposed bar joist  conduit  and ductwork  The author   s formula is to paint all surfaces  the same color with a dry fall material using the floor square feet  Remember  items having  similar surface  finishes  application method  and accessibility may be grouped together and  an appropriate production rate may be applied to the entire group  When items are adjacent   which do not have all grouping factors in common  they should be listed separately on your  take off  You would also want to add for unusually large joist or framing members   excessive amounts of conduit or ductwork  This page also covers metal and co
41. or this example let   s assume that FICA is 5 65   Medicare 2 00   FUTA  is 0 80   SUTA is 2 00   WorkComp 3 20   General Liability is 2 13  for a total Labor  Burden of 15 78  and you do not offer any of the Fringe Benefits  Remember this is Fixed  Overhead  you have to pay these Burdens as part of you Management teams    salary package   The 15 78  of the  150 000 represents  23 670 00  which needs to be added to the  150 000  for a total Management teams    salary package cost to your company of  173 670     Let   s take a minute here to look at a small company where the owner may work in the field  painting  For an example let   s say you have two employees and you work with them most of  the time except when you have to bid a job or run for material  The only time you are  earning your pay is when you are painting  When you are bidding a job or going for  materials you are Management Overhead  You need to evaluate how much time is spent  painting and how much is spent in the management of your business  Let   s say it   s about 50   50 and you pay your self  40 000 a year   20 000 or 50  need to be considered as  Management salary and treated as such  If your wife does your books for you and draws a  salary  that would fall in this Management category also  In this example  the owner   s   40 000 salary would represent  19 23 per hour based on a 2080 hour working year  You  are only working half of the year in the field so divide the  19 23 by 2 to get  9 62 per hour   T
42. per hour   Divide that by ten and you get your average hourly rate of  17 00  Now enter this figure on  line 8  column D     Average Painters Labor Rate     on the Program Sheet  It is very important  that this figure accurately represents your average labor rate  You will want to track this  figure and update it as needed     Prevailing Wage    On lines 10 and 11  column D  you will enter the Prevailing Wage and Fringe rate when they  are required  Be sure and enter both the wage and fringe rate  The two together make up the  Prevailing Wage Rate  You will usually be notified of the requirements to use these rates on  your bid invitation  Be sure and always check what the current Prevailing wage and Fringe  rate is  Not only does it change often  it may vary in different counties and areas  Note  you  do not have to remove the Average Painters Labor Rate  the program will automatically use  the higher rate  In some instances the Prevailing rate may be lower than your normal rate  In  this case you would probably want to use your normal rate  the higher rate     Page 6    Sales Tax    On line 15  column I  enter the Sales Tax for the area where you normally work  If the job  you are bidding is in a municipality that has a different tax rate then where you usually work  type in that rate  Some jobs may also have a tax exemption or reduction and you can make  those changes as needed for the job you are bidding  For an example will use 7 60      Miscellaneous Materials    On lin
43. r labor while Fringe Benefits is just that  Fringe Benefits  and may or may not  be offered as part of your pay package  FICA  Medicare  FUTA  and SUTA tax rates can be  found from your accountant or the government agencies that represent them  FICA is Social  Security  FUTA is Federal Unemployment and SUTA is State Unemployment  FUTA and  SUTA may be based on a limited amount of salary  example  as in the first  7000 00  Do not  try to take it off once an employ has met that criteria  Remember you are establishing an  average hourly rate  not each employee   s rate  Workers Comp  General Liability  Health   and Disability   Life insurance rates or percentages can be found from your insurance  providers  For this example let   s assume that FICA is 5 65   Medicare is 2 00  FUTA is  0 80   SUTA is 2 00   WorkComp 8 20   General Liability is 2 13  and you do not offer  any of the rest  Your total Variable Overhead would be 20 78  for this example     NOTE  If you were a company that subs out all its labor  you would enter the labor rate that  you pay the sub contractor at    Average Painters Labor Rate    on line 8 column D and leave  the labor Burden and Fringe  lines 20 through 30  blank  These would be the sub contractor   s  responsibility  You would still leave your Operations and Management Overheads  lines 32  and 33 in tacked  These are your expenses to run your business  As a point of note  if you  do not sub all your work and have some in house painters  based on the 
44. rement used in estimating that should be employed  when doing a takeoff     Rule  1  No object is considered less than one linear foot long and shall be measured as one  square foot per linear foot    Rule  2  Pipes  rods  structural steel  lumber  and other items to be finished whose  circumference or perimeter is less than one foot is measured as one foot  otherwise  the actual measurement is used    Rule  3  Items having similar surface  finishes  application method  and accessibility may  be grouped together and an appropriate production rate may be applied to the  entire group    Rule  4  When items are adjacent  which do not have all grouping factors in common  they  should be listed separately on the quantity take off and measured at no less than  one square foot per linear foot    Rule 5  When items having equivalent surfaces  finishes  application method  and  accessibility change direction at sharp angles and continue for a significant  distance in the new direction  then measurement of the object increases by the  length of the new direction  but usually not less than one square foot per linear  foot    Rule  6  When measuring non uniformly shaped and curved items  the added length of the  surface due to its curvature  change of direction  or non uniformity must be  measured    Rule  7  Closely fabricated items  such as chain link fence  open web joists  and grating   should be measured as being solid  If both sides of a closely fabricated item are  finished  doubl
45. rough Q and will give you advice and directions for that    page     If you get this       or this  VALUE  in the program  it is an error message  Don   t panic   you have just accidently entered a letter or punctuation mark in a number entry area  This  can occur when entering the price of material if you mistakenly enter a coma instead of a  period between dollars and cents  Just go find your mistaken entry and remove it  the  program will correct itself     Page 17    Entering Work into the Program    Job Setup Page    When you are going to price a job start at the    Job Setup    page  enter the job name  the  estimator   s name  and the date  Now go to    Save As    and save the job in a different file on  your desk top or in some other job folder that you would normally use  Now you can do your  entry without contaminating the program  You will always have a fresh program for your  next bid  In some situations  you may need to enter the prevailing wage  adjust the tax rate  and miscellaneous materials percentage and change the profit margin for a particular job     Job Totals Page    This page is a summary of your job  The only entry you can make on this page is to you   re  Bond Rate  Lines 7 through 26 in column D  gives you a breakdown of hours  labor rate   burden  fringe benefits and overheads that apply to this job  Lines 8 through 11 in column J   shows material cost  miscellaneous materials and sales tax  Lines 12 through 20 show  equipment  mileage  perdiem  ho
46. rs 14     These two sheets paint Guard Railing  Hand or Pipe  Railing and Stair systems  Example  Wood Stair system with a length of 12 feet and a width  of 3 feet with an    X    at Risers show 85 square feet to paint  This paints the skirts and risers   If the treads were to be painted  you would place an    X    at Treads and the square feet to  paint increases to 134 square feet  At    Primer     enter the number of coats of primer  at     Finish    enter the number of finish coats to be applied  Steel Stairs 14 works the same  except it allows you to paint the pan or underside of the stair also  The length or linear feet  of stairs is measured from the lip of the top landing to the lip of the bottom stair and entered  at the nearest whole foot  The width is entered as a fraction of a foot as in 3 5 feet for 3 feet  and 6 inches  If the stairs are flared  wider at the bottom then the top  find the average width        Floors 15    covers sealed concrete  painted or epoxy finishes with general floor prep and  shot blasting for concrete floors        VWC 16 to Misc  WC 22    are entry sheets for different types of wall coverings  Note that  wall priming for all wall coverings is calculated on sheet    VWC 16     If priming is not  needed for a particular wall covering remove the    X     in the yellow square in column    A    at  priming for that material  Also in column    A    at VWC    WC3 or Border    you can enter a  product number to identify the material you are usin
47. s  Standard flush door   42 Square Feet each  Standard doorframe   34 Square Feet each  Steel stairs and railing   20 Square Feet per riser  Typical 2 pipe railing   Length x 3 5  Typical 3 pipe railing   Length x 4 5  Typical 4 pipe railing   Length x 5 5  Typical 5 pipe railing   Length x 6 5  Standard Concrete Double Tees   2 times the floor area  Square Waffle Concrete Slabs   3 times the floor area  L   Length H   Height SF   Square Feet SF EA   Square Feet   Each    Scaffolding  ladders  and other equipment required for access to work    The following percentages are to be deducted from the appropriate production rate to  compensate for the reduced production involved with the use of the following equipment     Rolling stage to 10 foot working height                                   10  to 15   Rolling stage above 10 foot working height                              10  to 15   Extension ladders                                                             25  to 50   Swing staging                                                                 30  to 40   Man lifts  Booms                                                             10  to 20     Page 31    Getting extra mileage from your estimate    Once your bid is submitted  it would be easy to think that your estimate has served its  purpose and can be filed away  Wrong  If you got the job  your estimate becomes a valuable  planning and control tool  It will be the key to setting job performance standards and  controll
48. side  in columns K through Q to guide you    Page 23    Estimating    Estimating is a combination of art and science  While it may be difficult to consider all of the  factors that can affect the cost of completing any particular job  a sound method must be  employed to accurately estimate all cost  A well defined estimate will normally consist of  four basic components  Labor  Material  Overhead  and Profit  The estimate may also  contain such other items as travel expenses  special scaffolding  equipment  etc  The amount  of labor and material for a job should be calculated by applying production rates and material  coverage rates to a sound takeoff of the square feet of surface to be covered  This method is  usually referred to as developed price estimating  While it can be more time consuming then  unit pricing or labor pricing  developed pricing has the advantage of separating the various  factors that influence price  Each factor  labor  material  overhead  and profit  is separately  adjusted to allow for change in cost  unusual conditions  etc  Each cost retains the proper  relation to the other when a change is made     Estimating is so important that the tempo and performance of the entire company hinge on  how well or how poorly it is done  Go over the plans and spec book thoroughly so that you  have a good understanding of the job and how it is to be done  Be precise in your takeoff and  be thorough with the specs  The estimate should properly record what was seen 
49. ssential to your operation but they do not directly produce income   Where as Management salaries have a very significant impact on your overhead  I prefer to  track them separately to be able to keep a close track of this cost     Your Fixed Overhead is the cost of everything your company uses to make it function  besides labor  If you are using a balance sheet from your bookkeeper or accountant to find  your Fixed Overhead  it may show things like bond cost  equipment rental  housing for  employees when working away from home  drug testing for employees  Do not include these  cost in when calculating your Fixed Overhead  these types of expenses are direct job cost and  are charged directly to the job when needed  Fixed Overhead or Operations Overhead  includes  Advertising and Business Promotions  Accounting and Legal Fees  Auto and Truck  cost and expenses  Insurance and Taxes not related to labor  Licenses  Building rent or  payment  Utilities  Dues and Subscriptions  Office Supplies and Expense  Depreciation   Interest on long term loans  Travel Expenses that are not charged to the job  Bad Debts   Tools and Equipment including equipment repair and any other cost you might have  Make  sure all of these costs are realistic and reflect anticipated expenses for the coming year  If  you have been in business for a while  you will want to look back at that history and use it as  a guide for setting up your new year  Again  your accountant should be able to help you with  this
50. t team would be working for nothing     Most wall covering contractors furnish their own paste  The program assumes that the Sub  Contractor is furnishing his own paste  If you do not do this work in house and sub it out be  sure and always get a commitment of price from your sub before you bid     VWC   Vinyl Wall Covering   pages 16 and 17  In the green squares on the right  enter the  width of the VWC material to be used in inches  The program will calculate the square feet  minis 10  for waste  Most Vinyl Wall Covering is 54 inches wide and has 12 square feet of  usable material in a linear yard  When measuring to find the square feet of walls to receive  VWC  do not deduct for windows and doors unless they are very large  at least 60 square feet  each     At Wallpaper  pages 18 and 19 you will need to determined the size of the rolls that the  material you are using comes in  American rolls have 30 square feet of usable material and  European rolls have 25 square feet  Once you have determined which you are using enter  either 25 or 30 at   SF per Single Roll   Note  If you do encounter an odd size roll of  wallpaper  for example 75 square feet to the roll  enter the 75 in the green square at    SF per  Single Roll  Enter the price of that 75 square foot roll at the    Cost Per Single Roll and the  program will calculate you wall covering material  When measuring to find the square  footage of walls to receive wallpaper  do not deduct for windows and doors unless they ar
51. take off would be two vertical sides for 10 LF and the three horizontal pieces  top   middle and bottom for 9 LF to give you the total of 19 LF for the window unit  Once in a  while you will find hollow metal windows that are operable  If you encounter this type of a  hollow metal window take it off as you would the wood windows     The above take off scenarios would paint one side of the window  If you have browed light  units inside the building and both sides are to be painted be sure to enter the total LF for both  side of all of the units in to the windows program at    Windows 10     If one side of the  window unit were to have a different finish than the other side  you would want to enter the  LF in to two different programs  One setup for the finish system on the one side  and one  setup for the finish system on the other side  Examples would be the above browed lights or  the interior and exterior of windows        Page 29    Metal Decking  Siding  and Sheeting    Corrugated Surfaces    2 2    Corrugated Sheet     to find width before  corrugation  multiply the width after corrugation  by 1 08  Assume depth to be 5 8        1  4    Corrugated Sheet     to find width before  corrugation  multiply the width after corrugation  by 1 11  Assume depth to be 5 8        Roof Deck  Metal Sheeting   If the surface has a cross sectional view similar  to that shown  first figure the square foot area     then multiply by 2 42 to obtain the actual square foot     If the cross sec
52. te is   17 00 per hour and that equals  353 600 of labor in the job just as we anticipated   Following are the taxes and insurance overheads that we entered into the program  Line 21  shows us our    Operations Overhead    at  60 713 12 and the    Management Overhead    at   173 652 96  We had estimated them to be  60 700 and  173 670 respectively  The slight  differences are in the way things are rounded off by the computer  Line 23 shows that the  total overhead is  307 844 16  That is the total cost of doing this hypothetical years work  with the 10 employees and the 4 management people  At line 24  adding the overhead of   307 844 16 to the cost of labor at  353 600 00 shows a total Cost of Labor with Overhead at   661 444 16  Line 37  column J  shows  165 361 04 which is the 25  Gross Markup we  programmed in on the    Job Setup    page at lines 9 and10  column I  Line 39  column J shows  our total bid  or in this case years work  is  826 805 20  Our net margin or profit  line 38   column I  is 20  for  165 361 04  At lines 30 through 33 in column J you see how the  management cost apply to the job you are bidding  This management cost is not just for the  Project Manger or Field Manger salary  it represents all management wages  The owners  the  estimators  the secretaries  and bookkeeper   s salaries are all represented here as they apply to  this job  Notice the amount of management hours at line 30 in column H   8319   required to  generate the  353 600 00 of labor  
53. the bid  Anyone  can open and read the bid but if they change it they have to save it under a new name and the  original is unchanged  To setup a password in Excel 2002 to 2003 click on Tools then  Options and then Security  At    Password to Modify     click in the box and type in your  password and click OK  You will be asked to reenter password to modify  After reentering  your password again  click OK  Now don   t forget your password     To setup a password in Excel 2007 click on the round windows button in the upper left  corner of your screen and scroll down to    Save As    and select    Excel Workbook     In the  save as screen select the    Tools    button at the bottom of the window just to the left of the  save button  Click the tools button and select    General Options     In the general options box    Page 16    at password to modify click in the box  type in your new password  and click    Ok     Reenter  your new password and click    Ok    again  click save  You will be notified that Commercial  Paint Estimator 7 0 already exists  Do you want to replace it  Click    yes    and you have  added your password  Again  don   t forget it     These next two situations were pointed out earlier on page 5 but a reminder is appropriate  here also     As you move through the program  you will want to be mindful of the help tips on the right  of each screen  On a small screen computer  you may have to scroll to the right to see them   They will usually be in columns K th
54. the use of equipment  you  would make the entry here  Type in a description of the equipment to be used  At    Time  Needed     enter a 1  2 or what ever and at    Duration    enter what that duration is  as in weeks  or months  At    Rate per day  week  or month     enter the rate for that duration  Example   enter 2 at    Time Needed     enter weeks at    Duration     enter  125 00 for a weekly rate at     Rate per day  week  or month     and we will assume that there will be a  25 00 delivery and  pickup charge and enter that at    Delivery and Pickup     The program takes the  125 00 per  week rate times the two weeks needed and adds the  25 00 for pick up and delivery plus  sales tax for the total cost of  295 90  The total selling of  340 29 is with the percent of  gross markup you have entered on the Setup page  This is what this equipment well be sold  for in your bid  Even if you own the equipment  you may want to charge for its use     At Sub Contractors  you can enter a description of the work you will be subbing  the  amount of the sub contract and a percent of markup that you would like to make on the sub   To be competitive you may not want to mark up sub work as much as you would in house  work  As stated earlier on page 20 at    VWC 16     based on how it is setup  a percent of  Management Overhead will be added to the amount of the sub contracts  This is the cost of  biding the job  acquiring the contract  collecting the money  supervising the job and paying 
55. tion   determine the type of fabric to be used and select the  corresponding production rate  Acoustical fabrics are probably the most common material to  be used however  the production rate for installation varies greatly so be sure to verify what  material will be installed        Ext  CMU 23     This sheet is for exterior masonry and allows you to build the system you  need  In column    A    you will select the systems to be used by placing a number in the  yellow box  The number will represent the number of coats to be applied  Example  on a  block building you may install one coat block filler and two coats of paint  On a tilt up you  may use one coat of a masonry primer and two coats of a Tex coat material        Exterior Steel Stairs and Railing 30     This sheet works the same as Steel Stairs 14  It  paints Guard Railing  Pipe Railing and steel Stair systems  It is included here in the exterior  section for convenience  You may want to set it up with exterior materials       Misc  Hours 31    is an area where you can enter a price for something that will not fit any  were else  It may be that you just want to add some hours and money for miscellaneous or  unforeseen work  You can type in a description of the work or purpose  enter anticipated  hours and material cost and a description of the material  On this page  you can also enter the  painting of interior or exterior Accent Bands or Stripes        Misc  Eqpt  Subs  Travel 32    If you need to rent or charge for 
56. tion has a view similar to that shown   figure the top side as the square foot area of the  surface  Figure the underside as follows   A  For each square foot area multiply by 1 63  for actual surface area   B  Multiply by 1 75  C  Multiply by 1 92    If the surface area has a cross sectional view similar  to that shown  multiply the square foot of area by  1 5 to get the actual surface area per side     If the surface area has a cross sectional view similar  to that shown  multiply the square foot of area by  1 42 to get the actual surface area per side     If the surface area has a cross sectional view similar    to that shown  multiply the square foot of area by  1 75 to get the actual surface area per side     Page 30    a    a     A  4    B  6     C  8       3     3         S I VT R    5e    5  6                       12     gt      k    9    4y       Common Estimating Multipliers    Following is a list of some multipliers commonly used in paint estimating  The use of  multipliers will save time while performing a quantity takeoff and they provide a reasonable  approximation of the actual surface area of the various items that are to be painted     Acoustical grid in linear feet   Area of the Ceiling  Chin link fencing   Length x Height x 2 sides  Closed cabinets   Length x Height x 6  Open shelving   Length x Height x 4  Fire sprinkler piping   12 to 15 LF for every 100 SF of ceiling  area  add 15  for pipe hangers   Open wood and steel joists   Length x Height x 2 side
57. uding the base is  found by taking 2 times Pi  3 1416 times the radius  R   times the slant height  hs  divide by 2  If the radius is 5  feet and the slant height is 10 feet the calculation would  look like this  2 x 3 1416 x 5 x 10 2   157 08 square feet of surface area of the cone   Area 2xnxRxHs 2    Page 28    Window Sash and Trim    This 2 lite  3X5 wood window example has a total of 35 LF of 3 X 5  2 Lite  sash and trim  Labor Production rates in Windows 13    of the Winpow EXAMPLE  program have been determined assuming the sash and ne                                              perimeter trim detail components of a window assembly are je     measured individually and then totaled  The 3X5 window 4 p A  example has 19 LF of vertical and horizontal sash plus 16 LF   y   of perimeter trim  Note that a linear foot of perimeter trim is   m   assumed to include the jamb and casing  If this example was a        Ii  double hung window it would have 38 LF of sash and trim  It    it    would have 22 LF of vertical and horizontal sash because in   J i  the double hung window there are two center cross pieces  the  amp           bottom of the top sash  and the top of the bottom sash  The        perimeter trim would still be 16 LF  WW ji  If this 3X5 window was hollow metal it would be measured at   19 LF total  Hollow metal windows do not have the   complexity of a wood window  Usually the glass is set 4           directly into what is the jamb and casing of a wood window   Your 
58. using  and parking to name a few  Line 21 through 28 in  column J is a break down of field labor cost  Line 29 through 33 in column J is how  management labor applies to your job  This represents all management  Project managers   estimators  secretaries  CEO  and anyone else that draw a salary and do not directly produce  income  Lines 35 through 39 are the total in house bid with gross percent of markup and net  margin  Lines 41 through 45 in column J gives a summary of any Sub Contracts that will  apply to your bid  Lines 47 through 49 shows the total bid with any Sub Contracts that apply  to the bid and the total net profit margin     On line 52  column J  you will enter your Bond Rate percentage when one is required  A  bond is usually sold as a percentage of the total contract you are bonding  as in 1 5  to 4    You will need to contact a bonding company to establish your bond rate  Your ability to  provide security will influence not only your bond rate but also your ability to acquire one   The bond cost is not part of the Job overhead  it is a separate cost for the Bond service and  should be listed as a line item on your bid  The General Contractor or your Customer that is  asking for the bond will pay you for it  The payment for the bond should be billed with your  mobilization billing or your first billing for the job  Be aware that the bond will also apply to  any add on work or change orders for this job  When pricing add on work or change orders  be sure to inc
    
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