Search

project

What is a Construction Scope of Work and Why Do You Need One?

by

Because It’s Critical to Clear Communication, Whether You’re the Contractor or the Customer.

Last week Gene explained to John what project information needed to be gathered…

  • Project info (customer name, mailing address, project address if different than mailing, phone number, email address, project overview, budget, project deadline, any other relevant information that you need)
  • Measurements and dimensions, existing and new
  • Building materials, existing and new
  • Pictures of pertinent areas and existing construction
  • Customer’s design ideas and finishes

Overlooking or forgetting something is a sure way to lose money when doing a construction project.

This week they’re going to take the information gathered and turn it in to a scope of work. This will be the foundational form of communication between everyone involved in the process, i.e., customer, contractor, sub-contractors, employees, etc.

As they get started this week’s meeting Gene asks John if he had an opportunity to use the Bid Sheet this past week and if so, how it worked.

“Yes.” said John. “It was a little awkward in the beginning. By the time I was finished gathering the project information I was glad I had it, because there were a couple of things that it reminded me to do.”

Gene replied, “That’s great. Do you have any questions?” Not yet.” said John. Gene smiled, “You will before we’re done.”

Okay. Did you bring it with you? Asked Gene. “I did.” said John, “I’ve got it on my laptop.” Gene told him to open it up and follow along. “Today we’re going to work on the most important part of communication between contractor and customer.

The Scope of Work

What is a Scope of Work?

A Scope of Work clearly defines and explains the work to be done. It should describe what is included in each specific task in terminology that both the customer and the contractor understand. A scope of work describes the work to be done on a project, who is responsible for completing the work, how the work must be performed (techniques used), and what materials will be used. It helps in the smooth operation of a project, minimizing situations leading to disputes. It is the first step to building a mutually beneficial relationship between a contractor and customer.

Communication with the customer needs be simple and direct while explaining clearly and thoroughly.

After having gathered the information needed for the project using the Bid Sheet, write out in a few sentences, or less, of what each specific task is going to consist of. Explaining what you’re going to do in a way that a person with little or no construction knowledge can understand. Include as much detail and specifics as is needed to be clear on what is or is not included as a part of the project.

Once this process has been finished for each task included in the project, you have a Scope of Work ready to be transferred to a blank Proposal template.

Here’s an example of a Scope of Work using the information from the Bid Sheet we worked on last week.”

As they’re wrapping up this week’s training Gene tells John. “Next week we’ll get into the pricing of a project.”

The real value of this Proposal System is in the pricing.

Previous posts in this series –

What is “business clarity” and how do you find it?

Learning How to Get a Construction Project Started Out Right

It’s Time for the First Meeting

Being Aware of the Common Bid Mistakes is the Best Way to Avoid Them

Constructing a Building is Better with a Plan, a Proposal is No Different

A Good Construction Proposal Starts by Asking the Right Questions

Out of the Mouths of Babes

by
Little boy sitting on the ground surrounded by the question, "Why?"

 

 

 

 

If We Could Just Get Adults to Be More Curious Like Young People

 

 

Nine months ago, I met with a fine group of Scouts on a job site to answer their questions about construction and business. If adults would ask more questions like this…there would be less confusion between customer and contractor.


Too often as adults we don’t ask questions for fear that we will appear dumb. It’s like we think we should know everything about everything. As I answered their questions, I thought…


If more people asked questions like these , more dream projects would be a dream come true.


Here’s the questions they asked:

  • How much does building a new house cost?
  • How much wood does a new house take?
  • How long does it take to build a new house?
  • How many permits do you need to build a new house?
  • Do you build specially for earthquakes?
  • What equipment do you use most often?
  • How do you dig a foundation?
  • Did you go to college? Trade school?
  • What schooling do you need?
  • What made you want to start your business?
  • What was the first thing you built?
  • What was your first job ever?
  • How much steel goes into a house?
  • Have you ever built a tiny house?
  • Where are the dangerous places in a construction site?
  • Do you do more commercial or residential work?
  • Do you prefer/use more manual or electrical equipment?
  • Do you do more renovations or new building projects?
  • Have you ever broken a hard hat?
  • How often do injuries happen?
  • Do you hire out the electrical/plumbing or does the owner?

 


I thought I should share the answers to their questions with you. Due to the length of the list, I will it break down in future posts by category. Maybe these will inspire more questions to be asked. At the very least you will have these answers.


Check back next week to see the answers.


Communication is the biggest problem for construction customers and contractors. That’s why I have written extensively about it in the past. Here are links to some of those posts:

 

 

If you or someone you know have a construction question, please post it in the comments below and I will answer it too.

 

How To Price A Construction Project Proposal

by

Now It’s Time to Give the Project A Dollar Amount

 

The next step in the “Blueprint for Building a Better Proposal” is to determine the price for the project. We’ve talked a lot about the importance of communication to provide a clear description of the work to be performed. Now we’ll go through the process of determining consistent and accurate prices.


Poor communication will cause heartache, poor pricing will cost you money.


We’ve gathered the necessary information and prepared the Scope of Work so let’s put some numbers to the project.


 

Here we’ll combine the next two steps in the process; determining what pricing is needed for each specific construction tasks to be performed and quantities pertaining to each.

 

 

STEP 3 – PRICING THE PROJECT


This process uses two different Excel spreadsheets:


The Worksheet –
An Excel spreadsheet with all the construction sections and tasks listed out with optional overhead and profit markup formulas inserted in the appropriate locations.

The Data Base –
An Excel spreadsheet with prices for material and labor for a wide variety of specific construction tasks.


Based on the descriptions on the Bid Sheet, content from the Data Base will be copied and pasted into the correlating cells on the Worksheet.

EXAMPLE PROJECT:


Using Jane Smith’s Scope of Work for her laundry/sewing room addition we’ll determine the right information that needs to be copied from the Data Base and pasted to the Worksheet. Reference the Smith, Scope of Work here. 


Questions need to be answered like:


Which tasks need to be inserted into the Worksheet? Many of the tasks have options; which to use, will depend on the specifics of the project.


For example; How is the excavation, trenching and landscaping going to be done…with a skid loader, mini excavator, by hand or a combination?

Smith, Addition – Scope of Work, Sitework Section:

 

Data Base:
Copy pertinent cells to be pasted to the worksheet. (highlighted cells)

 

Smith Addition – Worksheet, Sitework Section:
Paste copied cells in worksheet template. (highlighted cells)

 


More questions that need to be answered:
Is the footing going to be formed with wood or poured in the ditch without any forms?

 

Smith, Addition – Scope of Work, Foundation Section:

 

Data Base:
Copy pertinent cells to be pasted to the worksheet. (highlighted cells)

 

Smith Addition – Worksheet, Foundation Section:

Paste copied cells in worksheet template. (highlighted cells)

 

 

After the pertinent information from the Data Base has been placed on the Worksheet it’s time to fill in the specific quantities. This will then provide the prices for the work to be done.

 


STEP 4 – QUANTITIES

On the Worksheet you will fill in the quantity needed to do the work on that line item. This may be lineal feet, square feet, square yards, cubic feet, cubic yards or numbers of pieces. Once this is completed you will now have prices for the Proposal.

 

Notice the highlighted cells in this spreadsheet. These are adjustments made due to the attributes of specific tasks on specific projects. In the case of this project the small size and location of the work in the back yard require some additional work and therefore additional cost.


I know this is a lot of content and information but it’s not as scary as it appears at first glance. The question that you need to ask yourself…


Do I want to be intentional at serving the customer’s needs at a profit or just guess and take a chance?

 


The next step is to bring all the pieces together in a thorough and accurate proposal that will give the customer a clear picture of what they’re getting and how much it’s going to cost. Check back next week for this part of the process.

 

 

How To Price A Construction Project Proposal

by

Now It’s Time to Give the Project A Dollar Amount

 

The next step in the “Blueprint for Building a Better Proposal” is to determine the price for the project. We’ve talked a lot about the importance of communication to provide a clear description of the work to be performed. Now we’ll go through the process of determining consistent and accurate prices.


Poor communication will cause heartache, poor pricing will cost you money.


We’ve gathered the necessary information and prepared the Scope of Work so let’s put some numbers to the project.


Best Price

 

Here we’ll combine the next two steps in the process; determining what pricing is needed for each specific construction tasks to be performed and quantities pertaining to each.

 

 

STEP 3 – PRICING THE PROJECT


This process uses two different Excel spreadsheets:


The Worksheet –
An Excel spreadsheet with all the construction sections and tasks listed out with optional overhead and profit markup formulas inserted in the appropriate locations.

The Data Base –
An Excel spreadsheet with prices for material and labor for a wide variety of specific construction tasks.


Based on the descriptions on the Bid Sheet, content from the Data Base will be copied and pasted into the correlating cells on the Worksheet.

EXAMPLE PROJECT:


Using Jane Smith’s Scope of Work for her laundry/sewing room addition we’ll determine the right information that needs to be copied from the Data Base and pasted to the Worksheet. Reference the Smith, Scope of Work here. 


Questions need to be answered like:


Which tasks need to be inserted into the Worksheet? Many of the tasks have options; which to use, will depend on the specifics of the project.


For example; How is the excavation, trenching and landscaping going to be done…with a skid loader, mini excavator, by hand or a combination?

Smith, Addition – Scope of Work, Sitework Section:

 

Data Base:
Copy pertinent cells to be pasted to the worksheet. (highlighted cells)

 

Smith Addition – Worksheet, Sitework Section:
Paste copied cells in worksheet template. (highlighted cells)

 


More questions that need to be answered:
Is the footing going to be formed with wood or poured in the ditch without any forms?

 

Smith, Addition – Scope of Work, Foundation Section:

 

Data Base:
Copy pertinent cells to be pasted to the worksheet. (highlighted cells)

 

Smith Addition – Worksheet, Foundation Section:

Paste copied cells in worksheet template. (highlighted cells)

 

 

After the pertinent information from the Data Base has been placed on the Worksheet it’s time to fill in the specific quantities. This will then provide the prices for the work to be done.

 


STEP 4 – QUANTITIES

On the Worksheet you will fill in the quantity needed to do the work on that line item. This may be lineal feet, square feet, square yards, cubic feet, cubic yards or numbers of pieces. Once this is completed you will now have prices for the Proposal.

 

Notice the highlighted cells in this spreadsheet. These are adjustments made due to the attributes of specific tasks on specific projects. In the case of this project the small size and location of the work in the back yard require some additional work and therefore additional cost.


I know this is a lot of content and information but it’s not as scary as it appears at first glance. The question that you need to ask yourself…


Do I want to be intentional at serving the customer’s needs at a profit or just guess and take a chance?

 


The next step is to bring all the pieces together in a thorough and accurate proposal that will give the customer a clear picture of what they’re getting and how much it’s going to cost. Check back next week for this part of the process.

 

 

How To Prepare A Scope Of Work For A Construction Proposal

by

 

 

 

 

This Is A Critical Part of Clear Communication

 

We began this “Blueprint for Building a Better Proposal” series with communication and the problems that occur when it’s done poorly or not at all. This is without a doubt the area where most contractors struggle. It doesn’t have to be this way.


Communication is the most important part of the proposal process.


Things that are unfamiliar seem overwhelming. This is true for both the customer and the contractor. The customer when not understanding what the contractor is talking about and contractor when not having a system for preparing proposals.


 

Our “Blueprint for Building a Better Proposal” system has specific pieces and steps for simplifying the process.

 


Last week we went through Step 1 – Gathering Information. This is where the customer’s why is uncovered, and the physical information is gathered and recorded. Here, we’ll breakdown Step 2 – Preparing the Scope of Work.


What is a Scope of Work?


A Scope of Work, …clearly defines the project requirements, milestones, deliverables, end products, documents and reports that are expected to be provided by the vendor. It helps in the smooth functioning of a project/work contract wherein both parties can avoid ambiguities and situations leading to dispute. It is the first step to building a mutually beneficial collaboration between a vendor and his customer. From a Udemy blog post written by Richa


According to Juan Rodriguez’s The Balance Small Business article, “Must-Have Items on a Construction Scope of Work”, the basic elements…of a scope of work document describes all of the work to be done on a project, who is responsible for completing the work, how the work must be performed (techniques used), and what materials will be used.


 

Communication needs be simple and direct while explaining clearly and thoroughly.

 


Writing out the description of work to be done in terminology that both the customer and the contractor understand is key to clarity. It needs to include enough specifics to be thorough without being too technical. Communication isn’t any good if it’s confusing.

 


EXAMPLE PROJECT:


When meeting with customer Jane Smith we found out that she wanted to add on a laundry/sewing room. She loved to sew and did a lot of it. Currently she used the table in the main floor dining room and the sewing machine in the basement. Her washer and dryer were in two separate closets in the master bathroom. This made for an inconvenience when sewing or doing laundry.


Once we’ve determined the why and gathered the pertinent information…

 

…it’s time to prepare the scope of the work.

 

 

Once this process has been finished for the complete project, we’ll have a Scope of Work ready to be transferred to the Proposal template.

 


Next, we’ll start figuring out the prices for individual items using the Worksheet and Data Base.

 

How To Prepare A Scope Of Work For A Construction Proposal

by

 

 

 

 

This Is A Critical Part of Clear Communication

 

We began this “Blueprint for Building a Better Proposal” series with communication and the problems that occur when it’s done poorly or not at all. This is without a doubt the area where most contractors struggle. It doesn’t have to be this way.


Communication is the most important part of the proposal process.


Things that are unfamiliar seem overwhelming. This is true for both the customer and the contractor. The customer when not understanding what the contractor is talking about and contractor when not having a system for preparing proposals.


 

Our “Blueprint for Building a Better Proposal” system has specific pieces and steps for simplifying the process.

 


Last week we went through Step 1 – Gathering Information. This is where the customer’s why is uncovered, and the physical information is gathered and recorded. Here, we’ll breakdown Step 2 – Preparing the Scope of Work.


What is a Scope of Work?


A Scope of Work, …clearly defines the project requirements, milestones, deliverables, end products, documents and reports that are expected to be provided by the vendor. It helps in the smooth functioning of a project/work contract wherein both parties can avoid ambiguities and situations leading to dispute. It is the first step to building a mutually beneficial collaboration between a vendor and his customer. From a Udemy blog post written by Richa


According to Juan Rodriguez’s The Balance Small Business article, “Must-Have Items on a Construction Scope of Work”, the basic elements…of a scope of work document describes all of the work to be done on a project, who is responsible for completing the work, how the work must be performed (techniques used), and what materials will be used.


 

Communication needs be simple and direct while explaining clearly and thoroughly.

 


Writing out the description of work to be done in terminology that both the customer and the contractor understand is key to clarity. It needs to include enough specifics to be thorough without being too technical. Communication isn’t any good if it’s confusing.

 


EXAMPLE PROJECT:


When meeting with customer Jane Smith we found out that she wanted to add on a laundry/sewing room. She loved to sew and did a lot of it. Currently she used the table in the main floor dining room and the sewing machine in the basement. Her washer and dryer were in two separate closets in the master bathroom. This made for an inconvenience when sewing or doing laundry.


Once we’ve determined the why and gathered the pertinent information…

 

…it’s time to prepare the scope of the work.

 

 

Once this process has been finished for the complete project, we’ll have a Scope of Work ready to be transferred to the Proposal template.

 


Next, we’ll start figuring out the prices for individual items using the Worksheet and Data Base.

 

How to Be Sure You Don’t Overlook Something…

by

 

 

 

 

 

When Gathering Information for A Construction Proposal

 

You or someone you know has experienced a construction project horror story. A dream project that somewhere along the way turned into a nightmare. A communication disconnect that caused the customer and the contractor to be at odds.

 


Why is miscommunication in construction so common?


In the first post of this Blueprint for Building A Better Proposal series, I wrote about this communication problem and that a better proposal is the contractor’s responsibility. Contractors don’t start a construction project with the intention of a misunderstanding…so why is it too often the result?


Most people in the construction trades, learned their specific trade, but were never taught how to do a proposal.


In the second post of the series I explained the parts of the proposal system. In the third, I went through the different steps of the process. 

 


In this post we’ll break down STEP 1 – Gathering Information:


The first information you should gather is WHY. Why does the customer want to do this project? Do they need more space, does something need repaired or replaced, are they looking to make it more usable, or is it just because they want to? Knowing the why early helps determine a clear direction going forward.


Unless the customer has a full set of blueprints and specifications, a site visit should be one of the very first parts of this step. Every individual project is as different as the customer is. Without blueprints, specs or seeing the existing location the chances of giving the customer the project they want, is almost impossible.


Information that needs to be gathered:

  • Project info (customer name, mailing address, project address if different than mailing, phone number, email address, project overview, any other relevant information that you need)
  • Measurements and dimensions, existing and new
  • Building materials, existing and new
  • Pictures of pertinent areas and existing construction
  • Customer’s design ideas and finishes


The important part is to not overlook something.


 

Use whatever way works best for you to gather the info. Early on I used graph paper and a clip board. I continued to go through different processes before getting where I currently am.


After the graph paper I developed a printed Bid Sheet that had a pre-determined list of the different construction tasks that might be needed. Next to each task there was space for writing down a brief description, dimensions, specific notes, drawings, etc. Having a pre-determined list is a great way to minimize the possibility of forgetting something.


Now I use the same basic Bid Sheet on a Microsoft Surface tablet and can either type, write or draw right on the document. This streamlines the process and reduces the chance of something getting overlooked.


Forgetting to include something in the proposal is a sure way to lose money.


There are over one hundred items listed on the Bid Sheet and it still doesn’t cover every possibility. Construction projects vary a lot. Even small projects can include a lot of different pieces. If you leave one of the pieces out, someone’s going to end up unhappy.

 


If you start with a list, you’re less likely to overlook something.


Next week we’ll take the information gathered on the Bid Sheet and turn it into a Scope of Work.

 

 

How to Be Sure You Don’t Overlook Something…

by

 

 

 

 

 

When Gathering Information for A Construction Proposal

 

You or someone you know has experienced a construction project horror story. A dream project that somewhere along the way turned into a nightmare. A communication disconnect that caused the customer and the contractor to be at odds.

 


Why is miscommunication in construction so common?


In the first post of this Blueprint for Building A Better Proposal series, I wrote about this communication problem and that a better proposal is the contractor’s responsibility. Contractors don’t start a construction project with the intention of a misunderstanding…so why is it too often the result?


Most people in the construction trades, learned their specific trade, but were never taught how to do a proposal.


In the second post of the series I explained the parts of the proposal system. In the third, I went through the different steps of the process. 

 


In this post we’ll break down STEP 1 – Gathering Information:


The first information you should gather is WHY. Why does the customer want to do this project? Do they need more space, does something need repaired or replaced, are they looking to make it more usable, or is it just because they want to? Knowing the why early helps determine a clear direction going forward.


Unless the customer has a full set of blueprints and specifications, a site visit should be one of the very first parts of this step. Every individual project is as different as the customer is. Without blueprints, specs or seeing the existing location the chances of giving the customer the project they want, is almost impossible.


Information that needs to be gathered:

  • Project info (customer name, mailing address, project address if different than mailing, phone number, email address, project overview, any other relevant information that you need)
  • Measurements and dimensions, existing and new
  • Building materials, existing and new
  • Pictures of pertinent areas and existing construction
  • Customer’s design ideas and finishes


The important part is to not overlook something.


 

Use whatever way works best for you to gather the info. Early on I used graph paper and a clip board. I continued to go through different processes before getting where I currently am.


After the graph paper I developed a printed Bid Sheet that had a pre-determined list of the different construction tasks that might be needed. Next to each task there was space for writing down a brief description, dimensions, specific notes, drawings, etc. Having a pre-determined list is a great way to minimize the possibility of forgetting something.


Now I use the same basic Bid Sheet on a Microsoft Surface tablet and can either type, write or draw right on the document. This streamlines the process and reduces the chance of something getting overlooked.


Forgetting to include something in the proposal is a sure way to lose money.


There are over one hundred items listed on the Bid Sheet and it still doesn’t cover every possibility. Construction projects vary a lot. Even small projects can include a lot of different pieces. If you leave one of the pieces out, someone’s going to end up unhappy.

 


If you start with a list, you’re less likely to overlook something.


Next week we’ll take the information gathered on the Bid Sheet and turn it into a Scope of Work.

 

 

An Overview of the “Blueprint for Building A Better Proposal”

by

 

 

 

 

An Explanation of How That System Works

 

This is the third post in the Blueprint for Building A Better Proposal series. The first focused on the importance of communication between contractor and customer and the problems that can happen without it. The second listed the foundational pieces of the proposal system. 

In this post we’ll take an overview of the process and how the different pieces fit together.

STEP 1 – Gathering Information

Once you’ve been contacted by a potential customer schedule a meeting to discuss the customer’s dreams and find out what they hope to get from this project. At this initial meeting you will gather information –

  • Measurements and dimensions, existing and new

  • Building materials, existing and new

  • Pictures of pertinent areas and existing construction

  • Customer’s design ideas and finishes

The information gathered in this meeting can be recorded in a variety of ways. The important thing in this step is to gather any and all information needed to prepare an accurate proposal. It can be handwritten on a printed out Bid Sheet. It can be typed in an electronic Bid Sheet on a tablet, smart phone or laptop. The purpose for using the Bid Sheet is that all the areas of a construction project are listed out, this minimizes overlooking things.

STEP 2 – Preparing the Scope of Work

After the preliminary information has been gathered it’s time to clarify the scope of the project by writing out the description of each specific task in terminology that both the customer and the contractor understand. It needs to include enough specifics to be thorough without being too technical. It doesn’t help communication if it’s confusing for the customer. This written description on the Bid Sheet gets transferred to the Proposal and serves as a written scope of work to be performed and materials to be provided.

STEP 3 – Pricing the Project

Next is putting prices to the project. This process involves two different Excel spreadsheets, the Worksheet and the Data Base. Based on the descriptions written on the Bid Sheet, content from the Data Base will be copied and pasted into the correlating cells on the Worksheet. After the pertinent information from the Data Base has been placed on the Worksheet it’s time to fill in the specific quantities.

STEP 4 – Quantities

On the Worksheet you will fill in the quantity needed to do the work on that line item. This may be lineal feet, square feet, square yards, cubic feet, cubic yards or numbers of pieces. Once this is completed you will now have prices for the Proposal. 

STEP 5 – Preparing the Proposal

Now you have everything you need to prepare the Proposal. You will use the description from the Bid Sheet and the prices from the Worksheet and put them both on the Proposal. Now you have a description for each specific task to be provided and the price for each. After filling out the customer’s information, the total project price, how payments are to be made and the duration of time to do the project, the Proposal is ready to present to the customer.

Next week I’ll go into the details of Gathering Information.

How To Prevent Your Construction Project From Falling Apart

by

 

 

 

 

 

 

Emphasis on, “The Project”, Not the Construction

 

 

You or someone you know has had a construction project, ‘not go as planned’.

 


To get it back on track may have just required a little clarification or…it may have ended up in court. Clarity of the project up front is the most important and most overlooked part.

 


I’ve heard people say the worst experience of their life was a construction project gone bad. It doesn’t have to be this way!


This problem can, and should, be addressed before any actual construction begins. The underlying issue with any disagreement is, different people seeing things differently. A good contractor’s job is to sort through these differences and develop a clear picture of the project scope, design, schedule and price.


Most construction projects fall apart for one of these reasons:


• Misunderstandings due to poor or no communication
• Blindsided by cost overruns or hidden costs
• Completed project wasn’t what you wanted or expected
• Not understanding construction terminology
• Poor quality
• Cluttered and unorganized job site
• Left hanging part way through an unfinished project
• Lack of scheduling or poor time management

 

The number one foundational problem between customer and contractor is –


LACK OF or POOR COMMUNICATION.


The first four…half of the list, are communication related. Good communication takes time and effort. Time and effort translate into additional cost. Additional cost means your project’s price is higher. Price is important and often leads to choosing a lower bid. Full circle back to the importance of communication. If you are aware of the differences and are presented a clear plan, you can make the best decision for you and your project.


The next two on the list have to do with trade skills and a LACK of QUALITY WORKMANSHIP. The level of craftmanship expected has been decreasing for years. I believe this is the result of importance placed on price rather than quality.


The last two focus on the LACK of HONESTY AND INTEGRITY. This is another place where the bar has been lowered and needs to be raised back up. Contractors need to say what they do and do what they say.

 


This entire list of issues can be remedied with attention given to these three overarching areas –


Better Communication
Quality Workmanship
Honesty & Integrity

 

 

Next week’s solution will focus on the number one reason construction projects fall apart – LACK OF or POOR COMMUNICATION. We will look at things you should know and expect from your contractor before any construction begins and throughout the project

 

Share your worst construction experiences in the comments below.