Lesson: Estimating jobs for Competitive Biding
Goals & Objectives:
- Have a basic understanding of estimating a job.
- Understand what competitive biding is.
- Understand the importance of biding a job fairly.
- Develop teamwork skills
- Create competition between teams.
Lesson: The instructor will explain the process of competitive biding down to an introductory level. Students will learn about the different elements that have to go into your bid like materials, prices, labor, labor cost, equipment cost, insurance cost, etc.
Activity: The instructor will put the students into groups of three. Each group will have 1 runner that will present the bid. The instructor will provide each group with job specifications that the students need to follow and fulfill, all specs will be exactly the same. The students are required to put together a bid to present that will be competing with the other teams. Students will be provided will a list of material prices, labor cost, standard time needed for a job, equipment cost along with a list of sub contractors with their prices and track records. The teams will use this list as a resource and pull out what they need to complete the bid. It is up to the team to provide a bid the will satisfy the job specification and will be the lowest price.
Evaluation: The runner from each team will present the bid to the instructor in a sealed envelope; this will be done in front of the other runners in a conference style meeting. The instructor will choose the winning team according to the lowest price and fulfilling the job specifications.
Closure: Once presenting the winning team the instructor will explain how important it is to satisfy a job’s specifications, bid a job low and the challenges that come with competitive biding while still making a profit.