Pricing a job

5/15/2020 at 11:05:04 AM

Morning Mark,

Do some reading of Michael Stones book Mark-up and Profit to help you understand your business numbers and complete an estimate.

Although American publication it still applies to the Canadian market.

It is availble at your library or to buy online

Cheers

Dave

360renos.ca

5/15/2020 at 3:14:26 PM

Hi my name is VICKRAM from VS Kitchen & Bath, I base my price on the job it all depends how the customer wants to go about it. I have no problem pricing for which ever way. And the only times there's hidden charges is when there is something that cannot be seen or hidden.im fully insured and licensed. And have a crew ready for work.thank you

5/17/2020 at 11:27:49 AM

Thanks Dave from 360renos in Ottawa. i bought the book. good reviews. comes with CD as well.

Much appreciated

5/19/2020 at 8:46:26 PM

Mark,

Depends on the amount of detail available (is there complete drawings)

With no specs to follow, everyone is guessing, as in, everyone. Now is the part where intentions come in. If tye contractor is intending to bait and switch, gouging the client after he has the jb, he will price the job low.

I price the job for what it really costs, including a miscellaneous budget for extras, surprises, etc. Loose many jobs this way, but it lets me sleep.

It also has a better chance of hooking me up with a client that follows the logic and has sense.

This leads to better jobs, better profit margins, more explanation and communication, and better sleep.

I have been renovating since 1981.

Best to stick to the high road.

Best,

Andrew

5/21/2020 at 1:13:58 PM

I'm wondering how you guys price a job. Do you give a quote (fixed price)?

- If the scope of work is clear and defined including the types of materials and finishes that the client wants we can give a fixed price.

Do you give an estimate (guessing what it will cost)?

- We prefer not to give open ended cost quotations but sometimes when materials have not been chosen this is all we can do.

Do you show details of the cost of labour vs cost of materials?

- Typically in a construction quote, we do not break down labour and materials as this can be difficult to do. If the contract is based on time and material we provide unit rates up front and weekly time and material costs with our invoicing based on actual effort and materials used. This is not typical.

Do you include finishing materials, or just hidden materials or no materials at all? How much do you charge for your time and how (hours / days / per person)? Or do you just charge by time and material? Or a combination?

- See answers above. Typically quotations up front are based on a lump sum price. We do give a breakdown of scope of work. IE Framing / Insulation / Drywall / Painting / HVAC / Plumbing / Electrical / Etc. Further breakdown to this is not typical for most projects.

The reason I ask, is that I know contractors that charge in many different ways mentioned above with many different ways for their time. I do jobs from low to high end. I have lost jobs in the past (I understand there are a lot of cheap customers out there), But depending on the job I've also lost on customers who have money. I'm use to giving quotes that include hidden materials only. Now i'm thinking that is not the way to go.

- It is beset practice to be as detailed as you can without over doing it because as you know often labour hours can be higher / or lower due to site conditions and factors we cannot control for certain tasks. Best way to protect yourself and the customer is to prepare a CCDC2 contract.