Introductory Items
- Testimonials
- Disclaimer
- Dedication
- Table of Contents
- Preface
- Introduction
Section I – Contracting Management (pages 1-10)
- Chapter 1 Back to the Next Ten Years
- Trends (Survival of the “Fattest”, The Turnkey (Franchise) Approach to Green Industry Contracting), Summary
- Chapter 2 Estimating System Overview
- The Overview (Three Phases of a Bid, Completing the Bid, Rounding and Decimal Points), Summary
Section II – Establishing Annual Budgets (pages 11-70)
- Types of Budgets [The Cash Flow Budget, The Accounting (Tax) Budget, The Estimating Budget], Income or Profit and Loss (P&L) Statement, Multiple Divisions, Formatting The P&L Statement [Sales, Cost of Goods Sold or Direct Costs, Gross Profit Margin (GPM), G&A Overhead, Net Profit Margin (NPM), Net Profit Adjustments], Historical Data and Estimating Budgets
- Chapter 3 Sales and Revenue Budget Projections
- The Sample Budget, Summary
- Chapter 4 Direct Costs: Materials, Subcontractors, Equipment, and Commissions
- Materials and Supplies (including the related sales tax) [Using Historical Data, Using Ratios], Subcontractors, Rental Equipment, Miscellaneous Items, Commissions [Comparison and Warnings], Summary
- Chapter 5 Field-Labor Payroll and Hourly Budgets
- Format, Average Wage, Overtime Factor, Risk Factor, Totals, Summary
- Chapter 6 Crew Average Wage
- Calculating the CAW, Summary
- Chapter 7 Labor Burden
- Set Percentages, Accumulated Work Time, Reviewing Labor Burden “Budget-to-Actual” (Use of Funds), View Labor Burden as an Incentive, Calculating Labor Burden [Workers’ Compensation Insurance, General Liability Insurance and Umbrella Insurance Policies, Vacations, Holidays, Sick Days (sometimes referred to as “well” days), Medical/Health Insurance], Summary
- Chapter 8 General and Administrative Overhead
- General and Administrative Overhead Parameters, General and Administrative Overhead Categories, Summary
- Chapter 9 Equipment Costs
- Budgeting For Equipment Costs [G&A Overhead Vehicle Costs], Calculating Equipment Cost Per Hour [Useful Life and Meter Time, Seasonality, Costs for New vsUsed Equipment, Renting vsOwning Equipment, Leasing vsBuying Equipment/Vehicles, Small Tools/Non-Motorized Items, In-House Labor on Equipment/Vehicles], Mileage Rates, Worksheet Exercises [Mini Pickup Truck, Rotary Mower, Small Tractor, Rototiller, Walk-Behind], Verification, Summary
- Chapter 10 Budget Recap and Ratio Analysis
- Budget Recap Analysis, Summary
Section III – Estimating Projects (pages 71-142)
- Chapter 11 Phase I: Production Costs
- Estimating Phase I Production Costs [Materials, Field or Direct Labor, Field or Direct Equipment, Subcontractors], Summary
- Chapter 12 Phase II: General Condition Costs
- Bidding General Condition Costs, Determining Categories, Calculating Job Duration, Most Common General Condition Items, Summary
- Chapter 13 Phase III: Completing the Bid
- Completing the Bid [Sales Tax, Field-Labor Burden, General and Administrative (G&A) Overhead or Indirect Costs, Break-Even Point, Net Profit, Contingency Factor], Summary
- Chapter 14 Unit Price Bids
- Calculating Unit Prices [Production of Finished Product/Service, General Conditions, Markups and Margins], Summary
- Chapter 15 Reviewing Completed Bids
- Reviewing a Bid [Read and Review Documents, Review Line Item by Line Item, General Conditions, Analyze Your Bid Price, Other Considerations], Summary
- Chapter 16 Estimating Strategies
- Your Bids, Your Customers, Your Business, Your Jobs, Summary
- Chapter 17 Common Mistakes
- Nine Scenarios [“Iron Man” Mike (Mike Isn’t His Real Name), The Sugar Daddy High, Too Much Caffeine (or Testosterone), The Vampire Syndrome, Egomania, Looking for “Foxes” in All the Wrong Places, In God We Trust (All Others Use Purchase Orders), The Psychology of Going Broke, Monopoly Money], Summary
Section IV – Special Bidding Situations (pages 143-256)
- Chapter 18 Flat-Rate Pricing
- Calculating Flat Rates [Flat Rates for Maintenance Extras and Enhancements, Flat Rate for Irrigation Spray Heads, Flat Rate for Stump Grinding], Summary
- Chapter 19 Time and Materials Pricing
- Materials Pricing, Subcontractor Pricing, Equipment Pricing, Labor (Curb-Time and Portal-to-Portal Rates), Rate Cards, A Simple Illustration, Summary
- Chapter 20 Bark Blowing
- Pricing Bark Blowing [Subcontracting Bark Blowing (Scenarios 1, 2, and 3)], Summary
- Chapter 21 Christmas Decorations
- The Crew Man-Hour and Day Rates, The Crew with Materials for a Typical Day, Summary
- Chapter 22 Hydroseeding
- Pricing Hydroseeding Work [Commercial Applications Using the Truck-Mounted Unit, Commercial Touch-Up Applications Using the Tow-Behind Unit, Residential Applications Using the Tow-Behind Unit], Summary
- Chapter 23 Interior Landscape Pricing
- Labor Rates, Material Pricing, Summary
- Chapter 24 Pricing Irrigation Service Work
- Pricing Irrigation Repair/Service Work, Summary
- Chapter 25 Lawn Maintenance Packages
- Landscape Management or Maintenance Estimating [The Day Rate, The Minute Rate], Summary
- Chapter 26 Large Maintenance Jobs and On-Site Maintenance Projects
- The Challenge and the Opportunity, The Method [Production Costs, General Condition Costs, Margins and Markups], Common Mistakes, Back to the Future (Where Are They Now?), Summary
- Chapter 27 Lawn Fertilization
- Pricing Lawn Fertilization [Large Residential Estate Lawn Fertilization with a Two-Man Crew, Large Commercial Lawn Fertilization with a Two-Man Crew, Small to Mid-Sized Residential Lawn Fertilization with a One-Man Crew], Summary
- Chapter 28 Outdoor Lighting
- Outdoor Lighting [A Typical Lighting Job (as if one exists)], Summary
- Chapter 29 Outdoor Ponds
- Outdoor Ponds [A Standard 11′ × 16′ Pond], Summary
- Chapter 30 Pricing Pavers
- Joe’s “Designer” Patios, Rick’s “Vanilla” Brick Road, Summary
- Chapter 31 Shrub Fertilization and Insect Control
- Pricing Shrub Fertilization and Insect Control Work [Shrub Insect Control, Shrub Granular Fertilization], Summary
- Chapter 32 Snow Plowing, Salting, and Sanding
- Pricing Snow Removal Work [Phase 1. Providing the Service, Phase 2. General Conditions, Phase 3. Margins and Markups, Analysis, Conclusion on Snow Removal Work], Pricing Sanding/Salting Work [Conclusion on Sanding/Salting Work, Scenario Summary], Other Considerations [The Profit and Loss (P&L) Statement, Contracts], The Snow and Ice Management Association (SIMA), Summary
- Chapter 33 General Tree Work
- Pricing General Tree Work [General Tree Work with a One-Man Crew, General Tree Work with a Two-Man Crew, General Tree Work with a Three-Man Crew, General Tree Work with a Four-Man Crew, Stump Grinding with a Large Stump Grinder and a One-Man Crew, Stump Grinding with a Medium-Sized Stump Grinder and a One-Man Crew], Summary
- Chapter 34 Tree Fertilization and Insect Preventive Maintenance
- Pricing Tree Fertilization and Insect Control Work [Fertilization Tree Work with a Two-Man Crew, Insect Preventive Maintenance Work with a One-Man Crew], Summary
Section V – Understanding market predisposition (pages 257-327)
- Chapter 35 The Concept of Market Predisposition: Why Is It So Important?
- Market Predisposition Defined, Markets are Dynamic, Market Adaptation Assumes Prerequisites, The Cost-Up versus Market-Down Analysis, “Micro” or Internal Market Predisposition, “Macro” or External Market Predisposition [Architects and Engineers; Plan Rooms, Green Sheets, Bidding Services and Construction Newspapers; Number of Bidders; Association Meetings and Golf Courses; Client Psychology; Geographical Regions; Vendors; Material Pricing; Subcontractor Pricing; Equipment Pricing; Labor Pricing; Geographic Predisposition; Government Trends], Other Market Predisposition Indicators, Summary
- Chapter 36 Margins and Markups: What’s the Difference?
- Historical Definitions, So What’s the Big Difference?, Common Misconceptions Using Margins and Markups, Markups, Margins, and G&A Overhead Cost Recovery, Margins and the Year-End Financial Statement, So What’s the Problem?, When to Use Markups and Margins, Summary
- Chapter 37 Gross Profit Margin: An Estimator’s Best Friend
- GPM Defined, GPM Calculated, GPM Market Trends, Evaluating a Business with GPM, Summary
- Chapter 38 The Six Most Common Methods for Pricing Jobs
- The Factoring or “Multiplier” Method, The Gross Profit Margin or Single G&A Overhead Recovery System Method [The 1/3, 1/3, 1/3 Rule, The GPM Markup Method], The Market-Driven Unit Pricing Method, The Dual G&A Overhead Recovery System, The Multiple G&A Overhead Recovery System or “Traditional” Method [The Fallacy of Recovering G&A Overhead Utilizing Percentages], The G&A Overhead and Net Profit per Hour Method [Caveats to Consider when Using the OPPH Method], Analysis of the Six Methods, Summary [G&A Overhead Recovery for the Peterson Residence Bid, Margins and Markups for the Jones Residence Bid]
- Chapter 39 The Mathematical Mistake of Using Percentages to Recover G&A Overhead Costs
- Direct versus Indirect Costs, What Causes Direct and Indirect Costs? [G&A Costs as They Relate to a Time Unit versus a COGS Element, The Single Overhead Recovery System (SORS) Method, The Dual Overhead Recovery System (DORS) Method, The Multiple Overhead Recovery System (MORS) Method, The Overhead and Profit per Hour (OPPH) Method], Summary
Section VI – Keeping on Track (pages 329-470)
- Chapter 40 Sales: The Bid Board and the M.A.D Report
- Sales Categories, Tools for Monitoring Your Sales [The Bid Board, The Bid Status Report, The Monthly Audit Data (M.A.D.) Report], Summary
- Chapter 41 Job Costing
- Types of Data to Identify, A Contractor’s Biggest Challenge, Construction Job-Cost Reports [Manual Job-Cost Report, Computerized Job-Cost Report], Maintenance Job-Cost Reports, Benefits of Job Costing, Maintenance Illustration, Summary [A Caveat, Basic Steps to Start a Job-Cost Report System]
- Chapter 42 Billable Field-Labor Hour “Budget vs Actual”
- Performance, Rationale, Tracking FLH “Budget vsActual” Performance, Downtime, Summary
- Chapter 43 The Company Break-Even Point (The October Surprise)
- The Break-Even Point (The October Surprise) [Determining the BEP], Summary
- Chapter 44 The Profit and Loss Statement and Recap Report
- The Profit and Loss Statement, The P&L Recap Report, Summary
- Chapter 45 Field and G&A Overhead Equipment
- Field Equipment Costs Bid into Jobs, Equipment Budgets and Monitoring Company-Owned Equipment [Establish an Equipment Checkbook, Establish an Equipment Division on Paper, Form an “Actual” Division or Company], Justifying Equipment Purchases (the 50% Rule), Keeping Score, Summary
- Chapter 46 Industry Benchmarks
- Identifying Industry Benchmarks, Summary
- Chapter 47 Six Sigma: Total Quality Management (TQM) Reevaluated
- TQM Evaluated, Verdict on TQM, TQM Reevaluated, Six Sigma, Summary
- Chapter 48 Bonuses and Incentives
- Bonuses and Incentives [Non-Monetary Incentives, Who Gets an Incentive?, How Much Will Each Person Get?, When Should You Pay the Incentive?, A Penny Saved, What About Total Quality Management (TQM)?, Do Incentive Systems Have Anything to Do with Exit Strategies?], The Gross Profit Margin (GPM) Incentive Model, The Net Profit (NPM) Incentive Model, Incentives Based on Individual Jobs and/or Field Production [Beating the Budget, Commissions for Field Crews, The Foreman’s Bonus Checklist, Unit or Piece Work], Micro Bonuses, Summary
- Chapter 49 Computer Estimating
- Potential Benefits of PC Estimating, Drawbacks of PC Estimating, Lessons Learned, Tools Provided by Computer Estimating, The Big Mistake, Summary
- Chapter 50 Marketing Strategies
- Marketing Is Building Relationships, Marketing Strategy and Systems [Product, Place (Location/Facilities), Price, Promotion, Process (The Power of the Process)], Estimating Strategy and Computer Software [Estimating System Review, General and Administrative (G&A) Overhead Recovery, Field Equipment Use, Average Wage, Net Profit, Monitoring Estimating, React Quickly to Market Changes, Study/Know Your Competition, Avoid Becoming a “Captive” Sub, Salespeople, Marketing Personnel, A Price, A Plan, and A Process, Personal Computer (PC) Estimating Considerations, Section Summary],
- Summary
- Chapter 51 Company Structure and Growth Patterns
- Company Growth Patterns and Structure [Construction Companies, Service or Maintenance Companies], Equipment Mechanics [Point of Diminishing Returns], Summary
- Chapter 52 Ordering and Controlling Materials
- Purchase Orders [Benefits of Using Purchase Orders, Procedure for Using Purchase Orders, Sources for Purchase Orders, Format], Inventory Control of Stock and Material upon Receipt, Tools, Gasoline and Fuel, Paying Invoices/Bills [Processing Invoices, Paying Invoices, Safeguarding Bank Statements and Canceled Checks], Summary
- Chapter 53 A Word to Your CPA/Accountant
- My Consulting Objectives for the Contractor, My Consulting Style, Misconceptions Clients Have About a CPA, How the CPA and I Can Best Help a Contractor [Budgeting, Formatting the Profit and Loss Statement, Job Costing, Accounting Software, Audited Statements for Bonding, Line of Credit (LOC)], Summary
- Chapter 54 Maximizing the Value of Your Business and the Business Life Cycle
- Learning to Think Like an Entrepreneur, The Predicament, The Process, The Payoff, Summary
- Chapter 55 Evaluating, Buying and Selling a Business (Business Exit Strategies)
- Two Basic Business Evaluation Models, MAD Psychology, Evaluation Models [The Gross Profit Margin (GPM) Model, The Wall Street Model], Summary
- Chapter 56 Concluding Remarks and Thoughts
- Don’t Panic!, See the Big Picture (But Work the Details), Understand and Incorporate “Paradoxical” Thinking, Think Long-Term, Stick To and Constantly Review the Basics, Get Help, Constantly Train Your People (and Yourself), Conclusion
Appendices (pages 471-527)
- Appendix A Practical Exercises
- Appendix B Labor Production Rates
- Appendix C Equipment Cost Per Hour (CPH) Rates
- Appendix D Abbreviations and Acronyms
- Appendix E Industry Benchmarks
Resources (including Glossary and Index) (pages 529-601)
- Endnotes
- Exhibits
- Glossary
- Reference List
- Green Industry Associations
- Index
- Answers
- How It Works
- Back Cover “Should I Buy This Book?”
- Survey
- Products & Services