Quote Folder Adjustments and Bid Quantity/Takeoff Quantity Differences

This is an advanced topic but one that estimators doing large at risk estimates should be aware of especially if there are significant bid quantity/takeoff quantity differences. First there is a setting in Tools>Preferences where you can set if bid quantities are desired to come over to the quote folders. HCSS defaults this setting to takeoff quantities. Here is the setting. So without checking the box the takeoff quantities come over to the quote folder and any adjustments are on the takeoff quantity. If I have something with 200 units of takeoff quantity and 100 units of bid quantity with $1.00 per unit price and $50 adjustment here is the math.

200 ea x $1.00 + $50 = $250.

Unit Price = $250/200 = $1.25. So the cost in the Tree View will show $1.25 x 200 each.  If I don’t have markup or indirects the final bid price will be $1.25 x 100 each = $125.00.  If the takeoff quantity is correct I will be paid $200 plus the $50 adjustment or $250 (200 ea x $1.25)

Now assume that the setting box is checked to Bid Quantity. 

Now the math changes.

100 each x $1.00 + $50 = $150. Unit Price = $150/100 = $1.50.  So now $1.50 is returned to the Tree View and then extended by the Takeoff Quantity.

So is the above incorrect? No, what HCSS is assuming is that the adjustment is on the bid quantity, not the takeoff quantity.  If I don’t have markup or indirects the final bid price will be $1.50 x 100 each = $150.00 which makes sense since the unit price in the quote folder is $1.50. So if I am doing double the quantity (takeoff) then double the adjustment will be required.

Lesson is this. You need to fully understand the details of having bid quantities/takeoff quantities differences if you plan to use it. Factoring will occur in HeavyBid and making the quote folders show Bid Quantities instead of the default Takeoff Quantities will change your estimate if you use adjustments.  If the box is unchecked then assume that the adjustment is on Takeoff Quantities and that the adjustment will also hold for the Bid Quantities. Communication with the vendor/sub on a major quantity difference is recommended unless you are worried about them disclosing the information to other bidders.  Ideally your vendor needs to qualify their adjustments on a quantity.