These sample screens are part of a proprietary estimating system used by several divisions. One list (left) holds typical project types and phases of construction; each line item in the other list (right) is a separate project.
These sample screens are part of a proprietary estimating system used by several divisions. One list (left) holds typical project types and phases of construction; each line item in the other list (right) is a separate project.

In my previous two articles ("Estimating From the Ground Up" and "Building a Unit-Price System") I discussed in detail how unit pricing items are developed and how using them to estimate jobs can save you time and increase accuracy. Whether you estimate with an off-the-shelf system or using an Excel spreadsheet, most systems today are built around a database of unit pricing items. Depending on your areas of focus, you could have a library of hundreds or even thousands of unit price items that can be used to develop a detailed estimate of the tasks required for any project, from startup to cleanup. All the parts, pieces, and labor will automatically be included even though you're focused on only the quantities of the units.

To carry these efficiencies one step further, I've built templates or assemblies of items into a library of estimates for the typical projects we do. While many folks I know often copy previous estimates that are similar to their current project, I suggest systematically creating a library of estimate templates to help achieve several key estimating goals: accuracy, efficiency, consistency, standardization, and predictability.

Project Types

The first step in creating this library is to draft a list of all the typical project types you do, then break down each project type into subcategories that will reduce the number of items you need to address in your estimate.

For example, one project type might be a single-story addition. If you had three templates—one for additions built on piers, another for additions built over a crawlspace, and a third for additions built on a full masonry foundation—you would significantly reduce the time required to complete an estimate. Also, if you were to further break down these templates into typical project sizes—small, medium, and large, for example—you would end up with nine templates for one-story additions that should be representative of any one-story addition project you're estimating.

The lists I use (see samples, left) include both typical projects and separate phases of construction. They are probably a bit more complicated than what you need, because they're designed to be used by several divisions of our company. But the ultimate goal of creating these templates is the same: to make estimating more efficient and more consistent, project to project.

Build it on Paper

The second step is to take time to think through your typical project and standard specs. I recommend making a basic sketch for each template that includes dimensions, take-offs, specs, and notes. There's no need to go into great detail here because no two projects will ever be exactly the same. But having all of this information on paper will make it easier to put together the templates, as well as give you a reference for that time down the road when something changes and you ask yourself, "How the heck did I come up with this in the first place?"

The last step—and it's a big one if you have a long list of projects—is to do estimates for small, medium, and large versions of each type of project on your list. For each project type, start with the "large" template and perform a complete estimate. You should include every line item—with the correct quantities—needed to build the project in its entirety, from start to finish.

Also add a list of items that could be part of a similar project, but leave the quantity at "zero" for these. Later, when you're using this template to estimate an actual project, these "zero quantity" items will serve as "ticklers" that will prompt you to ask, "Do I need this item on this job?"

Once you are happy with the large project template, clone it and revise it to create templates for the medium and small versions of the project. This typically requires changing most of the quantities, but may also result in fewer line items. Zero-quantity items are still useful, however, so keep as many as you think you will need.

hen all three templates for one project type are complete, move on to the next project type. The result will be a set of estimating tools that will help you not only to estimate the obvious, but also to minimize errors and omissions.

Time Saver

My database has 6,000 items in it. If I had to scan all of them for every estimate, I would be poor, crazy, and blind by now. If I had only items with quantities in my templates, I would be just plain poor. Having the right zero-quantity items offers a balance between these two extremes.

It takes time to set up a library of templates in your estimating system, but once you have it established, you can then combine two or more templates to create complex estimates: For instance, you can use four templates to estimate a one-story addition with a kitchen, powder room, and laundry. You will drastically reduce your estimating time, while making fewer errors. And if several people in your company are responsible for estimating, their estimates will be much more in line with one another's.

Finally, your estimates will be more predictable. That makes possible a fantastic "ballpark" tool that produces very accurate pricing in seconds, based on your estimating system. I'll show you how to create this exciting tool in a future column.