Using Rule of Thumb Prices

How do I use a "per square foot" price, or another "rule of thumb" price in my estimates?

You can do a simple cost item for a subcontractor "per square foot" price, or you can turn your "rule of thumb" price into a real unit cost so its components will be included in bills of materials and schedules.

Subcontractor Prices

When a subcontractor provides labor and materials for a fixed price per square foot (or some other measurement), follow these steps for a "quick and dirty" cost item that you can include in estimates:

1. Choose Cost Items from the Costs menu.
2. Click the New button.
3. Type in a brief description for the work.
4. Enter Subcontractor in the Cost Area popup field.
5. Enter the unit size into the Unit Size field.
6. Enter the price into the Purchase Price field on the left side of the screen.
7. Choose Save Record from the Edit menu (or hit the Enter key to save the record).

If you provide materials but the subcontractor provides labor for a fixed price per unit, follow these steps to handle both in the same line item:

1. Choose Assemblies from the Costs menu.
2. Check for an existing unit cost that is similar to the work in your "rule of thumb" price. HINT-- you can use the Find command to search through existing items by name or by category.
3. If you find one, choose Duplicate Record from the Edit menu.
4. In the duplicate item, remove any Labor items from the component table.
5. Choose Table from the Edit menu, and choose Insert Row from the submenu.
6. Click in the Cost Area column of the new row, and enter Sub Unlisted.
7. Click in the Unit Cost column, and enter the cost per square foot (or other unit). You can also fill in the other table rows.

If you can't find an existing Assembly for the work, follow these steps:

1. Choose Assemblies from the Costs menu.
2. Click the New button.
3. Enter basic info for the Assembly.
4. Click in the first row of the component table.
5. Click in the Cost Area column of the new row, and enter Sub Unlisted.
6. Click in the Unit Cost column, and enter the cost per square foot (or other unit). You can also fill in the other table rows.
7. Add a new row to the table (hit the Return key (Macintosh) or middle Enter key (Windows).
8. Add any materials that you will provide.
9. Repeat steps 7 and 8 for each material item that you provide.

Converting a Rule of Thumb to a Unit Cost

If you have a "rule of thumb" price that you use and want to convert it to a real unit cost, follow these steps:

1. Choose Assemblies from the Costs menu.
2. Check for an existing unit cost that is similar to the work in your "rule of thumb" price. HINT-- you can use the Find command to search through existing items by name or by category.
3. If there is one, check the Gross Price field in the Calculated Prices section.
4. If it is already close to your price, you're done! If not, adjust the component quantities or prices so it matches your price.

If you can't find an Assembly that is similar, follow these steps:

1. Choose Assemblies from the Costs menu.
2. Click the New button.
3. Enter basic info for the Assembly.
4. Click in the first row of the component table.
5. Click in the Cost Area column of the new row, and enter Labor.
6. Click in the Cost Item column, and enter the type of labor you'll use for this work.
7. Click in the Unit Cost column, and enter the hours of labor per square foot (or other unit). You can also fill in the other table rows.
8. Add a new row to the table-- hit the Return key (Macintosh) or Enter key (Windows).
9. Add any materials that you will provide.
10. Repeat steps 7 and 8 for each material item that you provide.

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