Defining Remodel Cost: Build Your Own Spreadsheet

Welcome to part two in our four-part series Defining Remodel Costs.  In our last post we looked at defining remodel cost via contractors.  Now we turn our attention to a more advanced, do-it-yourself approach: developing your own spreadsheet.

I am an Excel fanatic.  I have an assortment of Excel lists, budgets and estimates: upcoming blog posts, gift lists for others, important dates that I just can’t forget, estimated costs to remodel my own home,  goals for the coming year(s) and even books I have read or plan on reading.

Then Google Docs came along, and I thought I had died and gone to spreadsheet heaven.  Not only do I have all my spreadsheets in one place, accessible from any computer with an Internet connection (and really, is there such a thing as one without anymore?), but I can share my spreadsheets with others!

But what do I do most often with Excel?  I estimate projects.

And you can use it too!

Let’s look at defining remodel costs using your own spreadsheet.

When to Use this Method

Here are a few attributes that are recommended, if not mandatory, for effectively using this method:

• You are knowledgeable about remodel elements.  You can analyze a project and identify general steps needed from start to finish.
• You are good with manipulating Excel documents.  Not like “tax fraud” good, but like you know how to add rows and columns and write a formula or two.
• You have a source for quantifying unit costs for construction labor and material.  (If this is not you, keep reading.  Help is out there.)

When NOT to Use this Method

This method isn’t ideal if you’re looking for an immediate estimate.  Thoroughly using this method takes the average person a few hours here and there over 7-10 calendar days.

You may also consider one of the other methods of defining remodel costs if you have a huge project on your hands.  Using this method to price a new 3,000 square foot house on two fully-developed acres might be a bit much.  I’ll let you use common sense on this once you read through the steps below.

How to Use this Method

Step 1:  Download the Spreadsheet

Here is the form to download the Excel cost calculator I created specifically for the  MeandYourHouse.com community.  (My free e-book will come with it as well.  Peruse it for more details on managing your remodel project.)  Simply enter your name and email below, click “Submit,” check your email, click the confirmation link, then check your email again for the free downloads.

Step 2:  Build the Spreadsheet

Now the fun begins!

1. Open the spreadsheet.
2. Click on the second tab from the left labeled “Scope.”  Tabs are along the bottom of the document.
3. Fill in the three yellow boxes on the top right of the page as instructed.
4. In the same tab, double-click on the “Project Description” box, and write a brief description of your project.  If you want, you can come back to this step later.
5. Click on the next tab to the right, called “Summary.”
6. On this tab, fill in the two yellow boxes.   The first is the projected project start date and the second is the number of calender days you think the project will take.  You can also skip this if you like.  It does not effect the final cost estimate.
7. Click on the next tab to the right, called “Soft Costs.”  Here you will see a list of costs sometimes associated with a remodel project.
8. On this tab, fill in the yellow boxes to the best of your ability.  Make guesses if you need to.  The goal is to arrive at a general project price, not an exact bid.  If an item does not apply, simply leave it blank.
9. Click on the next tab to the right, called “Estimate.”  Here you will see a list of hard costs sometimes associated with a remodel project.
10. Do not input hours or dollar amounts into the yellow cells yet!  Remember, we are still just building the spreadsheet.
11. Go through and delete line items that do not pertain, add line items that the spreadsheet may be missing, or alter line item descriptions to match your project.

Your spreadsheet is now built and you are ready to begin your research!

Step 3:  Gather the Costs

Let’s face it: the difference between a pro and an amateur is knowing the cost for each piece of a remodel project.  Thankfully there are a slew of resources that provide unit pricing.

One method is to search Google for unit rates for building materials and labor.  This is quick and easy.  Unfortunately, it is also prone to wide margin of error.

A better method is to pick up an estimating reference book like Means Residential Repair & Remodeling Costs 2009: Contractor’s Pricing Guide.  This book is an easy way to determine unit costs for virtually any aspect of a residential remodel project.

If you encounter an unusual condition in your project, another good method for determining costs is to give a quick call to your local subcontractor.  Most can quickly translate your description and size into a unit cost. (Dollar per square foot, for example).

Step 4:  Input the Costs

As you conduct your research, fill in the spreadsheet cells you created in step 2 above.  Simply go down the list of project components and fill in the yellow cells either by referencing your estimating book or calling subcontractors.  Feel free to have subcontractors come to your home to provide estimates as well.  This may be your best bet for complex scopes of work.

Step 5:  Check Spreadsheet Formatting

Now your spreadsheet should be complete and you have a detailed breakdown of your project.  Before printing, check to be sure the “print area” is correctly selected (File-Print Area-Set Print Area) and your page is oriented how you like.

Print the entire workbook and you are done!

As you can see, defining remodel costs via your own spreadsheet can be a lot of work but very detailed and precise.  It takes some strong knowledge of remodeling principles, time lines and processes.  Perhaps this method is not for you.

In our next post, we will look at a very simple method for determining remodel costs: using on-line calculators.

Go back to Defining Remodel Cost home page.

Image Credit: www.flickr.com/photos/jeremylevinedesign/