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The Estimating Mistake That’s Costing You Time & Money · Contractor Business Builder Podcast

• 0:01
  Contractors, here's a question that could save you 10 plus
• 0:05
  hours a week and thousands of dollars.
• 0:08
  Are you using the right estimate at the right time?
• 0:12
  Most contractors don't need to change the pricing.
• 0:15
  They don't need to change how they estimate.
• 0:18
  Here's how we teach it inside our system.
• 0:21
  The three tier estimating system.
• 0:23
  Every general contractor should use number one ballpark estimate
• 0:29
  time 5 to 10 minutes cost to client free.
• 0:34
  Use this when you're qualifying a lead on the phone or during a
• 0:37
  quick site visit. This is your on the fly range
• 0:40
  based on project type, square footage and historical data.
• 0:45
  Why it matters. It keeps you from spending hours
• 0:48
  on something on someone who's never going to say yes.
• 0:51
  Example, this type of project usually falls between 200,000 to
• 0:56
  240,000 dollars. Does that line up with you with
• 1:00
  what you had in mind? If the answer is no, you just
• 1:03
  saved yourself hours. If yes, move forward with Step
• 1:07
  2. Step 2.
• 1:09
  Rough estimate time one to two hours.
• 1:13
  Cost to client still free. Use this when a lead passes the
• 1:18
  ballpark filter and is seriously interested.
• 1:22
  This version uses standard templates, typical scopes and
• 1:25
  allowance pricing, but without chasing down every sub or
• 1:29
  supplier yet. Why it matters.
• 1:31
  It helps clients make an informed decision early without
• 1:35
  you over investing your time. This step still builds trust,
• 1:39
  but without burning 5 to 10 hours prematurely.
• 1:45
  Estimate type #3 drill down estimate time 5 to 10 plus hours
• 1:51
  cost to client paid. This is where most GC's fall
• 1:56
  into the trap. You're spending full days
• 1:59
  building scopes, collecting real quotes, breaking out allowances,
• 2:03
  customizing selections, and you're doing it for free.
• 2:07
  Here's the better way. Use a pre construction services
• 2:10
  agreement. PCs A to charge for this phase.
• 2:15
  So what's a PCSA and why do you need 1A?
• 2:19
  PCSA is a formal paid agreement that covers your time and
• 2:24
  expense during the preconstruction phase before a
• 2:28
  shovel hits the ground. It includes things like
• 2:30
  conceptual design coordination, accurate estimating and scope
• 2:34
  breakdowns, scheduling and permitting, site visits or
• 2:39
  exploratory work, sub and supplier coordination, value
• 2:43
  engineering, and budget alignment.
• 2:46
  Why it works? It filters out tire kickers,
• 2:50
  builds trust and ensures your time is respected.
• 2:53
  You stop competing on price and start leading the project as a
• 2:58
  professional. How to start using it?
• 3:00
  Step one, Give a free ballpark estimate.
• 3:03
  Step 2 If the budget and project is a fit, give a free rough
• 3:06
  budget. Step three, If the client is a
• 3:09
  fit, present your PC SA as the next step.
• 3:13
  Step 4 Explain what's included, what it costs and the value
• 3:18
  they'll walk away with. Step 5 Deliver a polished
• 3:22
  proposal. Not a best guess.
• 3:26
  It's one of the most effective tools we've seen for improving
• 3:28
  sales, filtering leads, and protecting your time.
• 3:32
  If you're still doing hours of estimating for free, hoping to
• 3:35
  win the job, this is your sign to stop.
• 3:40
  Do you want to grow a general contracting business that can
• 3:43
  earn you more money in less time?
• 3:46
  Go to rapidresultcreators.com to get free resources as well as
• 3:53
  book. Book a free business builder
• 3:55
  strategy called to help you grow, scale your business, make
• 3:59
  more money and less time. Go check it out today.