by steel estimators must be clear and concise. Any items that are not clear and concise will be the ones that will come into question later—guaranteed! When questions come up during the fabrication process, the steel estimate will always be referenced for answers as to what was bid.
Every job has situations that are unclear. Therefore, even the ambiguous items must be well documented along with what was priced to cover that work. The materials list together with the bid letter precisely documenting all of the information goes a long way towards a successful project.
Many shops assign their estimating department to their sales department. In many cases, the estimators double as the ones who will also choose the projects to quote. The estimator as salesperson is common practice with smaller fabrication shops; estimators have the working knowledge of the project they quoted or will be quoting, enabling them to work more efficiently with the customer.
Initially, choosing a job sounds like a simple task. One would think that if a project requires fabricated steel, well, you would then quote on providing that steel. However, when the bid documents are analyzed based on the items to be fabricated, the process of choosing or not choosing a particular job to quote becomes a bit more involved.
Selecting projects to quote for the shop is a responsibility that involves a realistic view of a combination of items. Use Table 1.1, The Elements of Project Evaluation, to help with your choices. Know where you are with these items listed before you choose to bid on a job.
Consider these items carefully. It is important to understand both your own estimating capacity and your work backlog. Don’t overload yourself and create a quote in a rush if you can avoid it. Overselling the shop has negative implications to project schedules and cash flow requirements.
Steel estimators must understand the types of projects that are a successful fit for the company. If the company is interested in expanding or diversifying, then looking for small projects with fabrications that are different than what the shop normally performs might be prudent.
Table 1.1 The Elements of Project Evaluation
| 1. | Your own strengths and weaknesses as an estimator |
| •The type of project that fits your expertise | |
| •The time available in your current estimating work load | |
| •The magnitude of the scope of work | |
| 2. | The type of work on which your company thrives |
| •Commercial buildings, smaller or larger projects | |
| •Specialty fabrication (nonferrous) | |
| •Private fabrication | |
| 3. | The type of work your company may want to do |
| •Common steel fabrication | |
| •Specialty steel fabrication | |
| •Nonferrous fabrication | |
| 4. | The size of your shop |
| •Manpower—how many hours a week does your shop have to apply to the work | |
| •Physical characteristics of the shop | |
| •Square footage under roof and yard fabrication space | |
| •Handling capacity, overhead lifting, and rolling stock | |
| •Equipment capacity and versatility | |
| 5. | Current work load |
| •How this potential project will nest with the current shop work load | |
| •Project completion requirements-duration of schedule | |
| •Future work to help create a backlog |
Be clear on the handling capacity of the shop equipment and what kinds of tools are available to use. Understand the specifics of the available shop equipment, such as:
•the throat allowance on the band saw
•the ironworker tonnage capacity for bending and cutting
•throat allowances for the different materials
•types and functions.
Know what type of welding equipment is available. Make a list of all the types, sizes, and capacity of
•overhead moving equipment
•forklifts
•hand trucks and dollies
•yard rolling stock
•small tools (like drills, grinders, beveling equipment)
•flat layout areas
•work tables
•saw horses
so that you are aware of the shop’s resources as you consider your estimate for a project.
Understand the strengths and weakness of the shop with regard to personnel, tools and equipment, handling capacity, and floor space. Shop size has to be considered, not only the square footage, but also the height limits of the building, the allowance for door openings, and space for yard storage. Would special equipment have to be rented or purchased to work the job you are bidding? Are the fabricated members in the contract drawings extra large and heavy? Allowance for such conditions need to be made in the pricing, either by additional labor or a buy out of certain labor functions, including, for example, special cutting of extra heavy or oversize materials.
Rolling, forming, bending of materials, bevel cutting of plate, special shapes cut to size—choices about these items need to be made prior to quoting the projects. Will they be provided as a labor function of the shop or as a buy out item from a vendor?
Target the markets that contain the elements that the fabrication shop is best at building. In the quest to fill the shop, don’t waste estimating time and dollars to quote on a project that has unrealistic fabrication and delivery requirements. If the shop labor staff is good at fabricating beams and columns, but lacks the expertise for fabricating stainless steel, then steer clear of bidding anything with stainless steel work. Avoid projects that may be too small or too large for the shop.
Check project specifications; make sure that there is nothing there that will disqualify your company. Watch for special requirements that you would not be able to meet—like being an AISC-certified shop or a union shop if you are not. Check
