Qualifications: How to Win More Jobs AND Increase Profits

What are qualifications in construction? Qualifications are a list of statements provided to owners that clarify what products, building techniques, or services are included in their bid. Unbeknownst to many, qualifications might be as important as the estimate itself. At DCBT solutions, we produce detailed and accurate estimates backed up with extensive qualifications.

When we run across a project lacking plans, dimensions, specifications, materials, or fixtures types, we qualify the heck out of it. Importantly, qualifications do not intend to hide items or short change customers, but rather to clarify the contents of our bid.

As Dave Ramsey says, “to be clear is to be kind”. I’m not entirely sure if he came up with this on his own, but it is a frequent line is his podcast, “Entreleadership”.

A contractor who wants to limit change orders and owner frustrations, will qualify anything and everything they assume, include, or exclude, in their budget/bid.

If construction plans neglect specifying what type, or how thick, the slab should be, then we will qualify something similar to the following:

• Includes a 6” concrete slab on grade foundation with #4 bars spaced at 6” OCEW (on center each way).
• Excludes grade beams.

In another case, if we decide to exclude staggered studs with insulation between bathrooms and hallways, we will qualify as described below:

• Includes 12’ tall traditional stud wall spaced at 16” OC.
• Includes R15 batt insulation at exterior walls only.
• Excludes staggard stud walls.

Lastly, if cabinet hardware types are not specified, the qualification below may be applicable:

• Includes a cabinet hardware allowance of $10/pull. Assumes 6″ cabinets pulls.

Qualifications allow for clarity and transparency. There are several reasons you might qualify something on your project.

For example, sometimes architects lack the time to produce complete drawings. Qualifications can be a way to show the architect the deficiencies in the drawings.

Additionally, sometimes we discuss topics with the owner and design teams about products or designs that never translate into the drawings. In this case, we like to inform the team that we included the proposed product, and clarify why our pricing is different than what the drawings show. See an example below.

• Example: Includes 2 EA abc sink types at master bathroom, as directed in meeting on 11/15/2024. Excludes 2 EA xyz sink types as indicated in the drawings.

Furthermore, several factors reveal why qualifications are beneficial for owners.

• They may not be familiar with potential problems. In other words, they may not be aware of what’s waiting for them hiding behind that 50 year old wall.
• They may not know of possible solutions to their problems
• Many are suspicious of the construction industry because of change orders.

I have found many owners are willing to pay more for a contractor they can trust. Detailed qualifications are one way you can create trust. Thus, clarity is key.

At DCBT Solutions we like to create separations and groups to maintain clarity, consistency, and readability. Below are some guidelines we like to follow:

• Separate qualifications by work categories
  • 04.01 – Masonry
  • 09.01 – Framing
  • 09.12 – Painting
• Begin every qualification with an “includes” or “excludes”.
• Group all of our inclusions together and then group all of our exclusions together. See example qualifications on our examples page.
• Explain the why. If there is something we are including that may cost more to the owner, then we want to clarify the why.
  • An example of this might be including a booster pump to increase water pressure. The drawings or specifications may not dictate the need for a booster pump, however, knowing it may be needed, we inform the owner we have the cost included. To be unclear is to be unkind. See additional examples below.
• Use numerical values for quantities with a unit of measure.
  • Ex) 2 EA, 500 SF, 54 CY

Examples:

• Excludes mirrors in restrooms. Assumes mirrors will be provided and installed by owner.

At Clear Construction Estimates, we like to provide owners specific allowances through target values, price per fixture, or qualifying the precise fixture included, instead of consolidating allowances.

• Bad Allowance Qualification: $25,000 allowance for plumbing fixtures
• Good Allowance Qualification: “Includes $750 allowance for 1 EA kitchen sink.”
  • This qualification informs the owners they must select a sink that is $750 or less, or they can expect to pay more.
• Good Allowance Qualification: “Includes 1 EA Kohler K-6487 Whitehaven 30 Self-Trimming Farmhouse Single Basin Enameled Cast Iron Kitchen Sink”.
  • An owner can review our estimate and observe we have priced an $1,100 sink.
  • The owner now has the opportunity to inform us if they prefer a different product. Alternately, they can identify the cost and pick a similar priced fixture.

Spend the extra 30 minutes and list it out, you won’t regret it.