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How to Estimate Activity Cost the Right Way?
Estimating cost should be a rather straight forward and simple process, if all predecessor processes were completed thoroughly. Nonetheless, many mistakes are made in the cost estimate process and certainly have tremendous impact on the project result.
In this regard, I would like to recommend you the book Markup & Profit: A Contractor’s Guide, Revisited by Michael C Stone.
On Amazon, the book has consistently high ratings and is described as follows:
In order to succeed in a construction business, you have to be able to price your jobs to cover all labor, material and overhead expenses, and make a decent profit. But calculating markup is only part of the picture. If you’re going to beat the odds and stay in business — profitably, you also need to know how to write good contracts, manage your crews, work with subcontractors and collect on your work. This book covers the business basics of running a construction company, whether you’re a general or specialty contractor working in remodeling, new construction or commercial work. The principles outlined here apply to all construction-related businesses. You’ll find tried and tested formulas to guarantee profits, with step-by-step instructions and easy-to-follow examples to help you learn how to operate your business successfully. Includes a link to free downloads of blank forms and checklists used in this book.
Personally I like that Markup & Profit: A Contractor’s Guide, Revisited is practice-oriented and well-written. The communicated knowledge is well applicable and the costs are very low, considering the practical benefits you can get from the book.