MASTER ESTIMATING SERVICE
Consultants · Estimators · Engineers
Exclusively Electrical

IN BUSINESS ONLY PROFIT IS THE JUDGE.

The first rule in making money is, prevent losses. The second rule is, limit losses that can't be prevented. In contracting, over-runs are the losses the contractor must prevent or limit.

Accurate estimating prevents losses. This is the philosophy behind the Master Estimating System. The system prevents taking work at a price that is too low because costs were under-estimated.

Effective production management and job management prevents losses. This is the philosophy of the Master Production System. The system prevents information, material, and tool shortages, that cause actual labor to exceed estimated labor.

Effective cost monitoring is a loss limiter. This is the philosophy of the Master Cost Monitoring System. The system detects labor over-runs very early in the job, before 5% of the contract is completed. In doing so, it limits the cost of the over-run to the amount already experienced. But it also gives the contractor a large portion of the labor remaining to off-set the over-run.

Management must organize, direct, and control the business. This is the philosophy of the Master Management System. To manage a business profitably, the contractor must know how a business is supposed to work, and what to do to make it work properly. He must know the laws that govern a business. And he must have the information that tells him what is happening financially.

Whether or not a decision is good or bad can never be known at the time the decision is made. If a decision or a set of decisions result in a continuous profit, those decisions were right. This is the philosophy of Master Systems. Doing work right in the minimum amount of time.

Master Estimating Service takes the position that a company operating as it should will convert estimated profit dollars into actual profit. The good contractor, therefore, is one who turns the estimated profit into dollars in the bank. The best contractor is one who banks more profit than was in the estimates.

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Information contained in this website has been taken directly from our encyclopedia,
The Business of Electrical Contracting
Master Systems 1963-1990, 1990-2007, 2007-2024.