Estimating Database Best Practices

Guidelines for building and maintaining an effective estimating database.

Database Foundation

Start with Structure

Before adding items, establish:

1. Category/Cost Code Structure - Define your cost codes first
2. Naming Conventions - Document standards for consistency
3. Unit Standards - Decide on units of measure
4. Markup Strategy - Set category-level markups

A solid foundation prevents rework and confusion later.

Build Incrementally

Don't try to add everything at once:

1. Start with your most common work types
2. Add assemblies as you encounter new scenarios
3. Refine based on actual estimating experience
4. Remove or disable items that aren't used

Naming Conventions

Components

Use a consistent format:

[Category] - [Product] - [Size] - [Color/Finish]

Examples:

• Cabinets - Wall Cabinet - 36" - White Shaker
• Flooring - Hardwood - Red Oak - 3/4" x 3"
• Plumbing - Toilet - Standard - White

Assemblies

Use a clear, descriptive format. Don't repeat the cost code category in the name since assemblies are already organized by category.

[Scope/Item] - [Variant]

Examples:

• Cabinet Install - Standard
• Cabinet Install - Premium
• Shower Tile - Ceramic
• Toilet Install - Standard
• Outlet Add - Standard

Benefits of Consistent Naming

• Faster searching
• Reduced duplicates
• Easier training
• Better reporting

Pricing Management

Cost Accuracy

• Update costs when vendor prices change
• Review costs quarterly at minimum
• Track cost changes over time
• Document cost sources

Markup Strategy

Approach	Pros	Cons
Category-level	Consistent, easy to manage	Less flexibility
Component-level	Precise control	More maintenance
Estimate-level	Project-specific	Inconsistent margins

Recommendation: Set category defaults, override at component level only when needed.

Price Reviews

Schedule regular reviews:

• Monthly - High-volume items, volatile materials
• Quarterly - Standard items
• Annually - Rarely-used items, labor rates

Assembly Design

Keep Assemblies Focused

Each assembly should represent:

• A single scope of work
• A logical unit that's priced together
• Something a customer understands

Good: "Tile Floor Installation - Ceramic" Bad: "Everything for a bathroom" (too broad)

Include All Costs

Don't forget:

• Labor for installation
• Small materials (screws, adhesive, etc.)
• Waste/overage factors
• Delivery if applicable

Use Appropriate Units

Scope	Good Unit	Avoid
Flooring	sq ft	each
Cabinets	linear ft or each	sq ft
Painting	sq ft	room
Plumbing fixtures	each	-

Document Work Scope

Include clear work scope text:

• What's included
• What's excluded
• Installation method
• Demo requirements

This text flows to contracts and work orders.

Database Maintenance

Regular Audits

Monthly:

• Review recently added items for consistency
• Check for duplicates
• Verify new item pricing

Quarterly:

• Update costs from vendors
• Review assembly components
• Check markup rates

Annually:

• Full database review
• Archive unused items
• Update work scope text
• Review category structure

Handling Changes

Vendor Price Increases

1. Get new price list from vendor
2. Update affected components
3. Review assemblies containing those components
4. Document the change date and percentage

New Products

1. Create component with accurate cost/price
2. Add to relevant assemblies
3. Consider creating new assemblies if needed
4. Train team on availability

Discontinued Products

1. Disable the component (don't delete)
2. Remove from active assemblies
3. Create replacement component
4. Update assemblies to use replacement

Avoiding Common Problems

Duplicate Items

Problem: Multiple entries for the same item Solution:

• Search before adding
• Use consistent naming
• Periodically audit for duplicates
• Merge duplicates (keep one, update assemblies)

Stale Pricing

Problem: Costs don't reflect current vendor prices Solution:

• Schedule regular updates
• Flag items when updating vendor accounts
• Use vendor price lists systematically

Inconsistent Units

Problem: Same item with different units (each vs sq ft) Solution:

• Standardize by item type
• Document unit standards
• Review during audits

Team Training

Estimator Guidelines

Document and train on:

• How to search the database
• When to add new items vs use existing
• How to request new assemblies
• Proper category selection

Adding Items

Establish who can add items:

Role	Permission
Estimators	Request new items
Database Admin	Add and modify items
Management	Approve pricing changes

Feedback Loop

Create a process for:

• Reporting missing items
• Suggesting improvements
• Flagging pricing issues
• Requesting new assemblies

Organization Tips

Use Categories Effectively

• Group related items together
• Match your cost accounting structure
• Don't create too many categories
• Use hierarchy for detail

Pin Frequently Used

Pin your top 10-20 assemblies:

• Reduces search time
• Ensures consistency
• Speeds up estimating

Leverage Option Groups

Use option groups for:

• Good/Better/Best pricing tiers
• Color or finish variants
• Size variations with different pricing

Performance Optimization

Large Databases

If your database grows large:

• Use filters when browsing
• Disable rather than delete old items
• Archive historical pricing data
• Consider category reorganization

Search Strategies

Train team on effective searching:

• Use specific terms
• Filter by category first
• Use item numbers when known

Quality Control

Estimate Review

Check estimates for:

• Correct category assignments
• Appropriate assemblies selected
• Markup applied correctly
• Work scope included

Profitability Analysis

Review completed projects:

• Compare estimated vs actual costs
• Identify underpriced assemblies
• Find missing cost components
• Adjust database accordingly

Getting Help

When to Review Your Database

• Starting with Readybuild
• After significant business changes
• When estimates consistently miss the mark
• Before expanding to new work types

Documentation

Maintain internal documentation:

• Category structure and definitions
• Naming conventions
• Update procedures
• Training materials

Checklist

New Database Setup

• Define category structure
• Document naming conventions
• Set up standard units
• Configure category markups
• Add core components
• Build essential assemblies
• Pin frequently used items
• Train team

Ongoing Maintenance

• Monthly: Review new items
• Quarterly: Update pricing
• Quarterly: Audit for duplicates
• Annually: Full database review
• As needed: Add new items/assemblies

Related

• Managing Components - Component setup and management
• Managing Assemblies - Assembly creation and maintenance
• Cost Codes - Cost code setup and management
• Cost Codes in Estimates - How cost codes work in estimating
• Pricing and Markup - How pricing works in estimates