This is a great tool for contractors that need to refine their job bidding process. I made the template as granular as possible so there are inputs for each individual line item. The calculator looks at three types of costs: wages, direct costs, and fees.
$45.00 USD
After purchase, the template will be immediately available to download. It is also included in the accounting templates bundle, the construction / contractor templates bundle, and The Super Smart Bundle.
You can tweak various pay rates and other direct costs to see what type of bid is possible and what might need to be negotiated or adjusted. The primary logic that calculates your bid is a defined target gross profit margin. That is used in conjunction with your estimated total job costs to come up with a suggested bid amount.
Template Features:
- Wages:
- Slots for up to 7 worker types.
- Each slot has inputs for base wage, headcount, and hours worked.
- Sections included for overtime, holiday, and PTO.
- Define fringe benefits and payroll taxes for each worker type.
- Health Insurance, 401k, FICA, FUTA, SUTA
- Simple zero out any inputs that are not relevant.
- Other Direct Costs
- 100 slots.
- Enter unit cost and up to two multipliers.
- General liability and workers comp insurance inputs are based on a rate multiplied by the total base wages.
- Profit / Fees and General / Administrative Costs
- Sometimes you may just be taking a fee based on a defined percentage of total costs rather than targeting a margin. In this case you can enter 0% for the margin target and enter percentages for the 'fee / profit' and 'general / admin' inputs. These costs are included in total labor and other direct costs, but at the bottom I broke them out to show the profit margin if those were reduced from expenses and added to owner/operator profit.
At the bottom of the spreadsheet, there is a financial summary to detail the components of the total cost and the percentage each type of cost makes up of the whole.
If you need to edit the logic or override formulas, that is possible. The Excel sheet is fully unlocked and editable. I understand that some situations might include more advanced cost calculations. If you need help with custom spreadsheet work, I'm available for hire here.
Why You Need a Good Bidding Process:
Having a good job costing estimator is crucial for several reasons, especially in industries such as construction, manufacturing, and project-based services. Here are some of the key reasons why it's important:
- Accurate Bidding and Profitability: A good job costing estimator allows businesses to accurately estimate the costs of labor, materials, and overhead for a project. This accuracy is vital for setting competitive prices that are profitable. Without accurate job costing, businesses risk underbidding, which can lead to losses, or overbidding, which might result in losing potential jobs to competitors.
- Budget Management: It helps in the effective management of the project budget. By knowing the detailed costs involved, businesses can monitor expenses as the project progresses, ensuring that the project stays within budget or identifying areas where adjustments are needed.
- Financial Planning and Analysis: Job costing data are essential for financial planning and analysis. They provide insights into the cost structure of projects, which helps in forecasting, resource allocation, and overall financial planning. Businesses can identify which types of projects are more profitable and allocate resources accordingly.
- Improved Decision Making: With a detailed breakdown of costs, decision-makers can identify areas of inefficiency or high costs and make informed decisions to improve processes, negotiate better prices for materials, or optimize labor use.
- Enhanced Customer Trust: Providing accurate and detailed estimates can enhance trust with clients. Transparent pricing and the ability to stick to budgets can improve customer satisfaction and lead to repeat business.
- Compliance and Reporting: For certain industries, accurate job costing is not just beneficial but required for compliance with financial reporting and tax obligations. It ensures that costs are accurately allocated and reported in financial statements.
- Competitive Advantage: In a competitive market, the ability to provide accurate and competitive bids, manage projects efficiently, and maintain profitability can distinguish a business from its competitors. This can be a significant advantage in winning new business and maintaining a positive reputation in the industry.
Similar Accounting Tools:
