Transparency – Estimating in the Modern Era

This course explores a model for transparency within your business that will give you better control of your numbers, protect your overhead and profit, ensure your client’s money is appropriately applied and managed, and provides the opportunity for transparency with your clients. This is a content-rich course that will leave you with actionable steps you can take to build better.

Course Outline

• Transparency is about accuracy
  • Accuracy requires honesty
  • Problems arise in 2 places COGS and 1.68 (or similar) markups
  • Distance between 40% margin and 8.5% net profit?
• Problems with gross markup system
  • Navigating changes in scope
  • Time lost to re-estimating
  • Challenges to being honest with client
  • Challenges in clear communication with trades (internal and external)
• Best Practice – COPE vs COGS
  • COPE – Cost of Project Execution
  • Full accounting for COPE = X
  • Apply desired % as profit
  • Apply appropriate % as overhead
• 3 major divisions
  • COPE (inclusive of management and admin required to execute the project
  • Overhead (as determined based on non COPE related management, admin, marketing, office, etc.
  • Profit (as desired – no longer entangled with project cost)
• Tracking and Estimating
  • Materials and labor codes
  • Management codes
  • O&P codes
  • Accounting for everyone’s time
• Clear understanding of actual project cost
  • Clear tracking of actual project cost
  • Ability to isolate and manage overhead
  • Ability to isolate and manage profit
• Getting Started
  • Assign multipliers
  • Convert to hours
  • Modify as needed for variables
  • Develop project blocks
  • Modify continuously – set rules for modifications
  • Employees can modify with clear understanding of COPE
  • Employees can implement with clear understanding of budget for COPE

Learner Objectives

Students will learn about the following:

• How to correctly identify direct cost components
• How to create codes for materials and labor that can be measured and tracked
• The advantage of dynamic estimating systems
• How to be more accurate in estimating
• Consideration for a more ethical and honest method of accounting

Testimonials

"Transparency Estimating in the Modern Era and Growing Your Remodeling Business have been the most interesting and helpful of any class I've taken over the last seven years since starting my business. For people like me who learned construction but not business, these courses are incredibly helpful in becoming better at what we do." Corey Schroeder, Schroeder Carpentry LLC

"Great job! Michael really knows the business well." Jared Ewert, JCS Construction & Remodeling, LLC

"This course was very helpful, informative and easy to follow. There is a lot of value here!" Austen Valdez, Lakewood Builders LLC

"Great lessons learned in business management. I feel I received a lot of valuable info for my business skills. Well worth the price for information to help me upgrade my business." Nicholas Jorgenson, Aarhus Builders

"I wish I had started my company with this system. If a contractor could adhere to this system - success will follow." Terry Severson, Cardinal Exteriors and Home Services, LLC

"I loved this course. I'm always looking for ways to improve my transparency with my customers. I got a lot out of this lesson." Luke Anderson, Finntek Incorporated

"This course helped me to synthesize many ideas that I have been discussing with colleagues in the industry for decades, regarding our frustration with estimating, invoicing, customer trust, and business management. I appreciate the way Michael tackled these problems and comes up with a great solution. An excellent way to build trust with customers, subs, suppliers, and employees." Daniel Olson, Balanced Build LLC

"This is a great course every contractor can take away a least one helpful tip and include it into their project estimating." Ryan Langlais, Creative Concepts Contractors Inc.

"This was a very new fresh perspective that made me think about how I do estimates. I will use several of the strategies in my business." Erik Kruse, Kruse Carpentry

"I've bid a lot of projects, but as the instructor was talking I was reviewing how I would have bid on some of my past projects and this method would have given me a more accurate outcome. This was a great course." Marcus Greyson-Grubbs, MA Grubbs Enterprises LLC

"Michael has inspired me to be way more deliberate in my accounting approach and accuracy." Andy Wallace, Andrew M Wallace Construction LLC

"Michael provides an inarguably better system for estimating than my current vibes-based approach." Ryan Flanagan, RT Flanagan Construction

"Thank you! This was the most helpful hour of CE credits I’ve taken this year!"

Quiz Info

In order to receive continuing education credit(s), you will need to take a 10-question quiz following the course. To pass the quiz, you will need to achieve a score of 70% or higher. If you are unsuccessful, you will have an opportunity to repeat the quiz. Once you have successfully completed the quiz, you can download your continuing education certificate(s) showing the credit(s) that you have earned.

Credit Info

This course has been approved for one hour of MN residential contractor, remodeler, and roofer continuing education by the Minnesota Department of Labor & Industry and is approved for the required Business Management credit, and one hour of WI Dwelling Contractor Qualifier CE by the Wisconsin Dept. of Safety & Professional Services. 

If you are eligible to receive continuing education credits, your information will be electronically reported to the appropriate agency within 3 business days of course completion.

Access Info

Your online course is accessible 24/7. The course will be available to you for 180 days from purchase date.

Questions and Comments

Questions and comments related to the curriculum for this course may be submitted to the instructor at education@housingfirstmn.org.