#19: Bidding, Estimating, and Achieving Financial Freedom with David Gerstel

David Gerstel joins us to talking bidding, estimating, and achieving financial freedom as a builder. David is a best-selling author of several construction books, including his most recent, Nail Your Numbers: A Path to Skilled Construction Estimating and Bidding. He is also a well-known speaker, and will be featured at the JLC Live Show November 28-30 in Portland. In addition to being an expert on many things “home building,” David is also a model of success, having achieved financial independence in his mid-thirties (less than 10 years after starting his business), much of which he attributes to his passion for the craft. Enjoy the episode! And be sure to sign up for email updates and new information at www.buildingoptimal.com! Show Notes [1:50] – Why we shouldn’t confuse bidding and estimating. [9:20] – David’s 5 construction cost categories. [15:45] – The three overhead allocation methods and David’s recommendation. [22:25] – Allocating overhead when you aren’t operating at capacity. [25:30] – Using Labor Productivity Records for estimating direct labor on projects. [31:30] – What David sees as the standard profit margins. [34:30] – David’s opinion on the best business models. [41:30] – David’s strategy to financial freedom as a builder. [44:50] – Ensuring you know where your pricing stands compared to your competition. [52:40] – Ed Earl’s collaborative construction approach.