Job costing is a technique for evaluating performance on individual jobs. It is also a way to maintain historical data, to use to estimate future work. The calculation of costs on a job by job basis helps to take our financial temperature. How is this crew doing? How are we doing on this type of work? If we are using a certain price per hour to estimate and we find that after job costing our rate per hour is much less then we need to find out why we aren’t making our hourly rate as planned. Is it because the estimate is wrong, or is the crew failing to meet expectations? And if things are not performing as expected then we can hopefully pinpoint the areas that need improvement.
Not often mentioned as a beneficial tool to use, the data that comes from Job Costing is a real benefit in estimating special types of work. For example, we usually have an easy time calculating estimates for a 2 coat bedroom repaint, but when we try to estimate wallpaper removal, we might find that the range of hourly performance is greater. What if we have the same type of paper, and sizing etc, but we add the height of a 20 foot tall foyer. Or as so much of our market is 200 year old homes, what do we experience in the various complications. So when we record historical job costing data, it adds to our ability to accurately estimate unusual jobs.
Most people will just do something like this in their heads just to check the pulse of our jobs, formal job costing will open your eyes the first couple of times that you do it. And saving the data will provide long term help in estimating.
Create a simple form:
Job Name:
Estimator:
Contract Price:
Expenses:
Wages:
1) Employee hours worked hourly rate total
2) – - –
Material costs total
Job total
If we take the contract price and divide it by the man hours on the job we get the rate per hour that we achieved on this job. Obviously if we came out pretty close to the rate that we estimated this job at, then we are happy. If this job was estimated at $55/hour and we only managed to hit $35/hour. Then we need to find out why this job exceeded the budget that we established for this job.
By: P E Cavanaugh
Archive for the ‘Articles’ category
Painting Business Management – Job Costs and Estimating Paint Jobs
April 30th, 2010Painting? Don’t Forget the Paint Supplies
April 28th, 2010
Whether you are painting your home, or working on your own personal artistic masterpiece, it’s easy to forget the basic items needed beyond the paint that will result in a successful and great looking project. Before you start your project, sit down and make a list of all the paint supplies that you will need, so that you can compare prices, and make one trip to the store – not several.
Start with paint preparation; do you need to sand, scrape, or prime walls, edging, or rough spots? Inspect the entire painting area, and make sure it is clean, smooth, and free of cobwebs, dirt, and debris. If you are applying a lighter color paint over a darker one, or working on an unfinished wall, a primer may be needed to insure paint coverage and no bleed through. Spackle and patch any areas that are not smooth well in advance of painting so that the material has time to dry. A well prepped paint surface makes a huge difference in how the finished project will look and what paint supplies you will need.
Next is paint application – do you have the proper brushes, paint sprayers, rollers, and paint supplies tools? If you have large surfaces to paint, you may want to consider an electrical paint sprayer that can spray paint quickly and evenly. If you choose to use a roller or brush, make sure that you consider the kind of paint you will be using. Brushes and roller covers are designed for different types of paint, and the best, most professional looking result will be obtained when you use the proper brushes.
Remember that the cheapest brushes and rollerpaint supplies aren’t always the best when you re looking to obtain a professional finish, so compare cost versus materials. Cheaper brushes can often leave paint streaks, or lose their bristles while painting. If you are using rollers, don’t forget the extra covers, extension poles, or the trays.
Ask yourself what kind of spill and cleanup materials will be needed. Stock up on plastic sheeting, tape, and drop cloths so that carpet and non-painted areas are well protected from accidental spills. Determine if you will be using tape or painting edges around window treatments, ceilings, and other non-painted surfaces. Professional painters pay strict attention to edges to ensure they are neat, and to make sure there are no accidental splatters. Paint cleaners for brushes and roller paint supplies are a must on your list. Also, don’t forget your coveralls and other personal clothing protection!
Personal safety should not be forgotten when painting with dangerous paint supplies. Make sure you have ladders that are stable and usable, not broken. Respirators and dust masks should be used in unventilated areas and all areas should be well lit if you are inside. Put these items on your list if you don’t have them.
By doing a bit of pre-planning and preparation, thinking about your painting project, and making a list of all paint supplies, you can limit your trips to the local home store or internet website. You can then be sure that you have all of the paint supplies that you need to ensure completion of a beautiful, professional paint project.
By: Cathy Seiler
