Key Takeaways
- Walkthrough estimating produces ±20% estimates in 60-90 minutes.
- Memorize costs for 20-30 common items for same-day decisions.
- Score bids across price, scope, schedule, qualifications, and terms.
- Track Original Budget + Change Log + Forecast to Complete.
Applied estimating translates theory into the ability to walk through a property and produce a reliable cost estimate.
Walkthrough Estimating Workflow
Combine assessment with real-time cost estimation in 60-90 minutes. Memorize unit costs for the 20-30 most common items to enable same-day offers.
Bid Evaluation Framework
Score bids on Price (40%), Scope Completeness (20%), Schedule (15%), Qualifications (15%), Terms (10%). Bids 15%+ below competitors indicate scope omissions.
Budget Tracking System
Track Original Budget, Change Log, and Forecast to Complete. Update Estimated Final Cost at every draw request.
Key Takeaways
- ✓Walkthrough estimating produces ±20% estimates in 60-90 minutes.
- ✓Memorize costs for 20-30 common items for same-day decisions.
- ✓Score bids across price, scope, schedule, qualifications, and terms.
- ✓Track Original Budget + Change Log + Forecast to Complete.
Sources
- RSMeans/Gordian Residential Cost Data(2025-01-15)
- NAHB Remodeling Guidelines(2025-01-15)
Common Mistakes to Avoid
Submitting offers based on ±50% parametric estimates without walkthrough verification
Consequence: Over- or under-bidding by up to 50%, either losing deals or overpaying
Correction: Always conduct walkthrough estimation (±20%) before making acquisition offers
Accepting the lowest bid without line-by-line comparison
Consequence: Low bid misses scope items, resulting in change orders exceeding the savings
Correction: Score bids across price (40%), scope completeness (20%), schedule (15%), qualifications (15%), terms (10%)
Test Your Knowledge
1.How long does a walkthrough estimate take?
2.How many common items should an investor memorize costs for?
3.A bid 15%+ below competitors most likely indicates what?