Getting Material Prices

Step One: Gather the Latest Material Prices

Before the BidMagic Material Takeoff Software can calculate the latest material unit prices, you'll need to gather the latest prices for lumber and other raw materials from your suppliers.

Some prices can be gathered and entered 'on the fly' as you notice price variations. Others will probably be handled only once or twice a year, as you update all your prices 'in bulk'. BidMagic estimating software allows you to collect and enter material prices either way.

How often to Gather Prices

Except in periods of high inflation, you can probably update most material prices just once or twice a year. If you're using older prices, you can always use the material fudge factor to make a quick adjustment for general price increases that have occurred since the last update.

HINT: BidMagic construction bidding software also includes an inflation percentage in Soft Costs, to cover general price increases that occur between the bid date and the actual time of material purchase.

Occasionally there are periods when some material prices are very volatile (as has happened at various times with lumber, plywood, cedar and copper). When this happens, you may want to update prices whenever there are large price swings (10% or more). This may happen as often as monthly or even weekly.

You may also want to do more frequent price updates for materials that you use in very large quantities. These may include 2x4's and half-inch plywood (if you do lots of framing) or gypsum wallboard (if you do lots of drywall).

Generally you don't need to go crazy keeping up with minor price swings-- you can be reasonably accurate over the long haul without worrying about small changes. Remember that what really matters is the price when you actually buy materials-- and you can't anticipate that no matter how current your prices are.