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.
