IMPORTANT NOTICE:
We're enhancing the Cost Estimate feature, if you haven't tried it yet, now's the perfect time. The Classic Cost Estimate process as you know it, was sunsetted during the last week of November 2023.
Don't miss out on the future of estimating – Check out the new Cost Estimate and stay ahead with powerful features tailored for you. 🎉
Preparing the Project's Cost Estimate is an integral part of the bidding and preconstruction phase of a Project.
Estimates begin by selecting the cost codes to be used on a Project. Once you have added cost codes, you can begin building detailed assemblies that outline the scope and elements of what you will need for that cost code. You can add more cost codes and adjust assemblies at any time while a Project is in Request status.
As additions and changes are made to the Estimate, those changes are tracked by the Metadata Log.
1. Add Cost Codes to a Project Estimate
Once the Scope of Work has been reviewed and the Project is in Request status (use the status bar dropdown to "Commit the Scope" and promote to Request), the Estimate tab becomes visible.
The distinction between cost codes and Assemblies in RedTeam is that Assemblies are directly tied to cost codes, but you can have many Assemblies for a particular cost code. Each of these Assemblies can be made up of distinct, project specific items. For example: you have the cost code "03000 - Concrete" and for that cost code you create an Assembly that includes three items:
03000 - Concrete
(1) Form, Place steel & strip retaining wall.
(2) Provide 3000 PSI concrete for retaining wall.
(3) Place & finish retaining wall.
You can have as many items in an Assembly as are required for that project. Additionally, your company can build Master Assemblies that can be used across projects, particularly for cost codes that typically include the same items every time. For example, you may create a Master Assembly for "General Conditions" that includes five items:
01000 - General Conditions
(1) Project Manager
(2) Project Superintendent
(3) Permits
(4) Temporary Utilities
(5) Trash Removal
For more information on Master Assemblies, search for the article "Create a Master Assembly"
Cost Codes and their Assemblies may only be added and modified in the Estimate while the Project is in Request status.
Steps:
Click the Add (+) icon
Select "Add Cost Code"
Search by cost code name or number, or sort by Division using the dropdown, then click the Cost Codes or Assemblies to select them
Click "Save"
2. Build a Cost Code Assembly in Estimate
Once Cost Codes have been added to the Estimate in a Project, you can add cost information in one line item, or you can use Assemblies to build detailed scope breakdowns with multiple items.
Follow the steps below to add an assembly.
Steps:
From the Project home menu, select "Estimate"
Locate the existing cost code in the list, or click the add icon (+) to add a new cost code
Click the tools icon
Click "Open"
From the Open Assembly, click the Edit icon for an existing Item to add a lump sum cost estimate amount
From the Open Assembly, use the Add Item section to add more detailed cost items to the Assembly (cost code)
Click "Close" when finished
3. Edit Multiple Assemblies (cost codes) in Estimate
When managing your cost estimate in RedTeam Flex, you can Open each Assembly (cost code) one at a time to add specific detailed items or to modify the lump sum cost estimate amount.
If you are managing many of these Assemblies at one time, you may find it advantageous to use the multiple edit to modify many Assemblies at once without having to open each one individually.
To add new items to a specific Assembly in this list click the tools icon to select "Open". Once open you will have the option to add or edit items within the existing assembly.
Steps:
Click the "More" icon, designated by three horizontal dots
Select "Edit Multiple Assemblies"
Edit the Assembly Items
Click "Save"
4. Import Estimate from Template
Estimates can be created by manually adding Cost Codes to a Project in Request status, and then building Cost Code Assemblies to identify the work being estimated. Alternatively, you can import an Estimate from another Project in RedTeam, or from a template. To import an Estimate from a template, follow the steps below.
Steps:
From the Project's Home menu, select "Estimate," OR navigate to the Estimate tab of the project
If there are no Cost Codes selected for the Estimate, a window will open prompting you to select Cost Codes, which you can Close
Click the New (+) icon
Select "Import Estimate"
Select the option "From Template"
If you don't already have your Estimate data formatted to RedTeam Flex's template, select an option from the "Download Template For" field to format
Use the Excel Template to format your estimate data under the headings that RedTeam will use
To view an example of a formatted Estimate, click the "Example" tab at the bottom of the Template
Once your Estimate has been formatted, select all the data (except the headings) and Copy
In RedTeam Flex, paste the data into the Import From Template screen
Click "Import"
RedTeam Flex will automatically highlight any invalid fields in Red
Double click any red fields to correct them from this screen
When fields have been corrected, click "Apply Change"
Once all fields have been validated, click "Save"
5. Import Estimate from another project
Often, you will find yourself working on a project that has a similar, if not identical, Estimate from a previous or ongoing project. To avoid the hassle of recreating the same Estimate, you may import an estimate from another Project within RedTeam Flex.
Steps:
Click the New (+) Icon
Select "Import Estimate" from the drop down menu
Type the Project Number the estimate you would like to import into the field, if you have a specific scope, enter it too, press "Next>>" when done
6. Proposal Types
In RedTeam Flex, a Proposal refers to both a main contract Proposal and a Change Order Proposal, both of which are typically sent to the Customer for review.
Proposals can be one of three different types: Fixed Price, Time & Materials, and Construction Management.
Fixed Price Proposals are the most commonly used and are the default setting for all new projects in RedTeam. All of your pricing is set in the Estimate, using cost codes and amounts that are either manually entered or inserted from the Vendor's Quote (by selecting as Best). Then, indirect costs (company-wide overhead markup rates) are applied and a Profit is calculated on the total direct & indirect cost. The Profit/Fee can be entered a percentage of Total Cost or Total Price, or may be entered as a flat "Total Contract " amount, which will automatically calculate the profit percentage for you.
Time & Materials (T&M) Proposals allow you to specify negotiated markups with your customer for profit, material, labor, and subcontract. Then, T&M sheets are created in RedTeam and submitted to the customer for approval. This is especially useful when a customer or owner asks you to proceed with work in the absence of an agreed upon price and time impact. T&M Proposals are typically used for Change Orders, when the relationship requires more transparency, but it may be used for a main contract as well.
Construction Management (CM) Proposals allow you to propose negotiated rates with your customer for profit, material, labor, and subcontract. These negotiated markups and unit prices are set at the Customer Facility level. Unlike T&M Proposals, CM Proposals do not allow you to exceed the Total Price you set here in the Estimate, which is recognized as the Guaranteed Maximum Price (GMP).
You can adjust the Proposal type while your Project is in Request status. You can promote/demote to Request status if you have the correct permissions. For assistance promoting/demoting to Request status, please contact your System Administrator or send a "Help Me" ticket from the Help Center.
It is possible for a Potential Change to have a different Proposal type than the original Contract (i.e. you may have T&M Changes on a Fixed Price Project). You will be able to select the Proposal type for a Potential Change once it is in Request status.
Steps:
Go to the Estimate tab and scroll to the bottom of the page
Click "Type of Proposal" dropdown
Select the Proposal Type
Click "Save"
7. Percent of Total Cost vs Percent of Total Price
What is the difference between the Percent of Total Cost and the Percent of Total Price under the Estimate?
When putting together your Total Price for your bid to the Customer, you have two options for the calculation of the Fee:
- Percent of Total Cost calculates a percentage on the Total Direct & Indirect (overhead) Costs in the Estimate.
- Percent of Total Price calculates a percentage on the Total Price, which includes Direct & Indirect Costs plus the Fee.
Many construction contracts allow for Fee to be calculated on the overall Total Price rather than on only the Total Cost, which can help add some extra dollars into your overall contract price.
Steps:
From the Project's home menu, select "Estimate," OR navigate to the Estimate tab of the project
The Project must be in Request status to change Pricing (Estimates may only be modified in Request status)
Scroll to the Price Adjustment section at the bottom of the Estimate
Use the dropdown to toggle between Percent of Total Cost and Percent of Total Price
8. Auto Insert Supplemental Markups
Supplemental Markups are additional custom markups that can be applied to a Project Estimate that you put together as part of your Project Proposal. These markups are created and set up in the Configuration menu, then applied on original Estimates as well as Potential Change Estimates. See the article on "Configure Supplemental Markups" for more information.
Some markups will be applied to all subsequent Changes that occur throughout the Project. In order to ensure these always get included with new Changes, you can turn on a Preference for the Project that will automatically insert the Supplemental Markups into every new Potential Change Estimate you create on this job.
The steps below will show you how to turn on this setting and make sure that the Supplemental Markups you want automatically inserted are set up in the Unit Prices list for that Project.
Steps:
From the Projects menu, search for and click on the Project to open it
Next to the Status bar, click the Preferences icon
Under the "Change Orders" heading for Cost Estimate, check the box "Auto insert Supplemental Markups"
Next, verify your Supplemental Markup appears in the Unit Prices for this Project
From the Contract tab, click the Manage icon and select "Unit Prices"
Verify that your Supplemental Markup is in the "Markups" section of the Unit Prices
If the Supplemental Markup does not appear, go to the Configuration menu to verify it is linked to the Company Division being used on this Project
If you are unsure which Company Division is being used on your Project, go to the Project > Scope tab and click on the Facility
Once you have verified the Company Division for the Supplemental Markup, return to the Project Contract tab and Reset the Unit Prices
Once you have the Supplemental Markup showing listed in the Unit Prices and the Auto Insert Preference selected, all Markups you are done!
9. Reset the Project Estimate Indirect Rates
When you are building a Project Estimate, you may notice the line for Indirect Costs under the Subtotal Direct Costs line. These come from the Indirect Cost Allocation Rates which are set up for your company in the Configuration menu. These are standard markups for indirect costs that are applied to every Cost Estimate for all Projects you create in RedTeam Flex. If you want to change these standard cost rates, you can do so from the Configuration menu (click here for instructions).
If you update these rates in Configuration they will automatically apply to all new Projects you create. If you would like to apply them to current Projects that you are estimating, you can do so by resetting the Estimate. Follow the instructions below.
Steps:
From the Project's Home menu, click "Estimate"
Click the More icon
Select "Reset"