How to accurately estimate project management and site office costs

[andreasandreas0]

I am currently bidding on a new commercial build and I am really hitting a wall with the overhead costs. In the past, I usually just threw in a flat percentage for the site office and trailers, but lately, it feels like I am losing money on every job. Does anyone have a better way to estimate these things accurately? Specifically, how do you guys handle costs like site security and temporary utilities when the project schedule inevitably starts to slip? I really want to make sure I am not leaving money on the table this time. Any tips on building a better budget?

[EwaLato]

Honestly, using flat percentages is a total trap that many of us fall into early on. I learned the hard way that every extra month on the schedule just eats your profit if you didn't estimate your needs resource by resource. You should definitely check out this guide on general conditions contract construction because it breaks down the specific cost categories perfectly. From my experience, you really need to list every PM salary and every dumpster rental separately. It might take more time during the bidding phase, but it saves your skin when delays happen. These costs are time-based, so if the site stays open longer, the bill keeps growing. It really helps to see how others manage these operational expenses before you sign anything.

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