Having had the past privilege of shepherding a number of prospective estimators from time to time, I’ve experienced an amusing misconception among many of these “bidmeister” “want-to-bes.” Their common delusion arises from the notion that estimating is a rather formulaic exercise consisting of a binary calculation between labor and material. I have to laugh at their naivete, as I introduce them to an entire new world because, as experience dictates, the model of a successful estimate often dwells somewhere beyond the outer limits of the land of Nod.
Ambiguity reigns supreme in the realm of approximating, and the sheer volume of possible conditions gives evidence of this. In reality, a solid estimate consists of a host of contingencies, inclusions, exclusions, allowances and general conditions in addition to the aforementioned binary calculations. This is why an astute bidmeister will keep a running list of the plethora of probable provisions as a valuable reference. And while my own personal database of vagaries is far too vast to reckon with this writing, a listing of common contingencies would be beneficial.
\In an effort to narrow down this list of probabilities, I would divide the field between contingencies and general conditions. My working definition of general conditions suggests that they are circumstantial costs that are likely (or certain) to be incurred, while contingencies are accommodations for costs that may or may not occur at all.
Examples of general conditions include such exigencies as home office, facilities (think, job trailer), common tools and equipment, plan copies and typical consumables, such as drinking water and ice. General conditions are pretty well-defined and straightforward. Clearly, the possible examples of contingencies, however, are more ambiguous, more numerous and merit more emphasis. Some of the more egregious instances are included below.
Labor-Related Contingencies
These conditions are often the most critical and at the same time the most nebulous. Any commercial estimate is inevitably determined by a baseline schedule that is set forth in the contract documents. Schedule considerations are generally well-intentioned, logically ordered and adequately monitored. But in spite of all this, as often as not, they fall behind.
When delays are determined to be the fault of the drywall specialty contractor, it falls incumbent on them to remedy the situation. When schedules slip, the recovery tactics are twofold: increased labor/workforce and overtime.
The outcome is a serious cost incurred over an unforeseen circumstance. Another potential labor-related contingency can arise with shift work. Most often shift work, if required, is set forth in the bid docs and is foreseen. But special circumstances can intervene, such as hoisting after hours, that incur unforeseen costs.
Shop Drawings
It’s conceded that structural shop drawings have become a requirement for commercial drywall framing. The included cost is a foredrawn conclusion and can be relegated to the status of a general condition. An estimator will typically tack on 10% or 15% to his framing material budget to offset the likely cost for the drawings themselves.
What becomes maddeningly murky is the added level of cost for steel upgrades once the engineering is complete. Thickness, width, and flange size are all added curve balls that engineers are likely to throw at unassuming estimators.
Certifications
This is a contingency that is frequently overlooked by even the most diligent of bidmeisters, they are often blind-sided by the notion that his field operations manager has kept up to date on OSHA requirements, and mandatory certifications on aerial lifts or aerial work platforms, welding, hoisting and impact tools. Clearly, an astute estimator would do well to verify that all certifications are current, as post-award costs can be crippling.
Patch and Repair
Most general contractors recognize that extensive damage to a drywall specialty contractor’s work will incur added cost. Still others rather disingenuously suggest that all specialty contractors carry a hefty allowance against such a contingency in advance.
A preconstruction dialogue can clarify whether such an allowance should be carried in the contract price, and what amount should be reserved.
Conclusion
As stated earlier, a complete itemized list of possible contingencies would be endless. It would include such provisions as parking, per diem, dumpster/hauling, hoisting (crane time), orientation, building information modeling, fuel, daily stretch-and-flex (don’t laugh, the actual workforce cost can be horrendous) and many others.
The question a serious estimator must ask is one of degree—that is, how much contingent cost can a bidmeister carry and still remain competitive? Is he comfortable or hungry? Will they be aggressive or conservative? It’s another dilemma—one of many—that estimators are compelled to deal with on a daily basis. So much for a binary formula, eh?
