Do you compare the actual costs with
your original estimate each time you
complete a job? No matter what estimating
method you use—the stick
method, the unit-cost method, or a
combination of your own making—it
is critical that you know how accurate
your estimates are so you can make the
necessary adjustments for accurate
future estimating.
Material prices change, sometimes
without notice. Fast workers may be
replaced with slower ones at different
wages. Changes in building codes and
building inspectors or changes in your
own procedures can also alter the
actual finished cost. If you don't have
a way to account for these changes,
your estimates will be off. You may bid
too high and lose the next job.