Hello,
A lot of our rough pricing comes from past experiences. Our company has completed 1300 projects, so we have a lot of historical data we can use to come up with the original rough estimate.
After we sign a contract all estimates are based on actual material and labor costs.
When car dealers start selling cars by the pound, I’ll quote remodeling by the square foot. This has been asked over and over, and unfortunately, there is no set answer. Remodeling consists of custom everything, from selective demo to retrofitting cabinets. I created a detailed spread sheet I have used for 20 (+) years, and it seems to work. Its laid out in a format just as the project would be built. It includes everything. I created this so I can estimate (not calculate) my employee hours for any given task, as well as my sub contractors pricing and all the materials. At the end of the day, it typically comes out right in line with the final job costs.
I wish there were an easy since for this. Having been in the industry for a real long time, my experience will often help expedite this estimating process, but someone thats not doing it all the time is going to make a lot of mistakes. If they do it right, a project like a $75,000.00 kitchen remodel is going to take him/her 40 (+/-) hours to acridly quote it. Great if you win the project, but a lot of time waisted if you don’t.
Joe Balich
President
Meridian DesignBuild, ltd.
(704) 573-2626
We work mainly on custom remodel and addition projects, There are no formulas for that I trust for this type of work. In my mind there is only 1 dependable way of producing an accurate detailed estimate. Get detailed info about the project walk the job site with owners, Architects, designers & your subs, get familiar with the bid set of drawings typically given to bidders. Create the budget line by line as the project would be built assigning costs to each, Put reasonable allowances in for unknowns or lines that are TBD, clearly identify lines if any that are excluded in the budget get hard quotes from subs, allow for general conditions insurance, supervision, site protection etc., pay attention to job site conditions/location, what types of equipment needed work hours etc. add overhead & profit. Double check with square foot prices in your area…
This process takes a little extra time to provide a finished budget proposal, It has worked well for me and my clients appreciate the extra effort
The contractor should give detailed description on the quality to be installed,but as far as separating labor charges + order costs and showing each section of how much each costs is the wrong way to conduct a business.Any competent contractor knows this and charges for his services as a package.
You have a lot of rights as a home owner.However, your contractor is not running a non profit organization. He is not an employee.Do you provide Worker’s Comp for him? NO . Do you pay his general liability insurance ? NO.
The performance of the employees and the quality of what you get this is what you get ,and this is what it will cost you. Apples & Oranges
However, as General contractor and business owner don’t want the reputation for being the cheapest or low price provider,instead we want to be selected for our knowledge,dedication,perfect workmanship, and our customer service. We want to work with people who appreciate the value of quality work, and not people who only want cheap. We never take short cuts or use inferior materials- only the best!!
Costs per square foot is used mostly to lure in customers in order to raise the price later.
The issue a homeowner needs to address is how good of a job do you want? If cost is the main concern then go with the people that throw out the cheap prices and you will get the sub par work and service. If you want a really good installation and service then it will take someone that has a lot of experience and their time is worth paying more for because of the service they provide. Depending on experience and type of job a setter and helper tile crew can charge anywhere from $500 to $900 per day, and really if you think about it, compared to automobile mechanics that charge $640 to $900 per day for one guy to work on your car that does not go up in value like your house does!
So, the most common problem I see is people that want the Ferrari for the Volkswagon price. The choice of design and materials can make the labor double, triple or beyond. I have spent 2 days in a small bathroom and I have spent almost 2 weeks in a small bathroom! So when people want a price on a “small” bathroom it does not always mean it will be a small price.
For plumbing its unique depending on what type of project. If a homeowner wants to say re-pipe his home. We use a formula of how may drops there will be for each fixture. If a home has a two bath house. Then of course each fixture i.e. toilet would get its own unique new drop in the wall with a variety of material. We ask the homeowner which type material they want to utilize. The most popular type of piping is Uponor PEX. When we re-pipe a home in PEX we re-pipe the entire home. From the riser where the water enters the home from the city supply. To each individual fixtures and water heater. We also include new copper stub outs and the high quality BrassCraft angle stop shut off valves. We then install new braided stainless steel flex lines going to say kitchen faucet for example. Also we install new PEX to each hose bib for the out side of the home, You get a new line down the wall and a copper stub out with new hose bib. We also install brand new refrigerator valve boxes for your ice maker box. With new stainless steel flex connectors from new wall box to fridge. Then you will get a new washing machine valve and drain box as well. When re-piping a home we always give the customer a brand new water heater. Whether its gas or electric we install new water heater($1550 value) With all new PEX piping water heater and valve boxes we promise that your water pressure will be which ever pressure the city or water authority is providing. Generally speaking for City of Houston it runs around 45-55 pounds per square inch. Your home will have great flow again to all its fixtures. All this comes with a two year installation warranty and a twenty five year manufacturer warranty. A great example of cost for a project this size: 2 baths, kitchen, hose bibs, and water heater : $ 6,500.00-$7,700.00. The cost difference has a lot to due with the attic access and drywall access.
Get 3 subcontractor bids, then 1.95x multiple.
I add cost of materials and cost of subs, then I double it.
Pricing varies based on the project requirements. We mostly like to see the job/assignment to get a better interpretation of what is needed. We sit with you and go through everything. Estimates are totally FREE of charge.
We use a proprietary software driven algorithm to price each project quickly and 100% accurately.
Bidding by square foot is only a rough general idea. Most new and inexperienced contractors use this method because they do not know what to charge.
We bid from current cost and other factors. We always come up with a Contract Price with draws and contingencies. We are not going to be the lowest bid ever.
Our quote covers all we contract to do and will be completed in a professional workman like manner according to a time-table we submit. Weather can have severe affect on any project and some parts require, clear dry weather and ground. Again we don’t rush something it must be done correctly.
depends on the project but most of our projects in New construction are done by Sq ft and renovations are a combination of sq ft and project cost.
On larger jobs we make up a list of all materials to be used in a project, take into account work conditions and other factors, and use estimating software to come up with a number of labor hours. Labor hours x hourly rate + materials= project cost. On smaller jobs we estimate it off of what how long we believe it will take us. Thanks!
Project pricing can be done in many ways. Some people do an overall average of multiple project as a volume amount and seek to hit a certain %. What they loose in pour biding or underestimated projects they gain in better bid projects or over estimated. In new construction and volume building Lineal Feet (LF) and Square Feet (SQ) can be gauged and controlled better, especially if its a repeated floor plan. Custom homes can be difficult due to the customization and if there is a specific trade that can achieve it for a said price. Custom homes can be expensive hence the term Custom. Remodels are a combination of LF & SF of work because they are like new homes but require a degree of customizing to achieve the updated look. Depending on the % of a remodel some local jurisdictions require the home to be brought up to current code standards and that can get expensive if the contractor did not plan for it. One of the best ways to meld all of this together is to budget out each area of focus. Allowances for the work in each stage helps track and can free up funds for different areas. It gives more control to the home owner on either spending the more money to fix unforeseen issues or to scale back in a specif area so as to not blow the budget. If your contractor asks your budget its a good thing. That helps them to price accordingly and don’t forget the contingency % it could be the difference in getting the tile you really wanted to use and the bathroom you never wanted at all.
It is important to know that each time you are hiring a contractor to install your new floor (e.g. epoxy floor) you are making an investment. If you are seeing this as an investment than you can know how much are you willing to spend. If your new flooring will last for years and perhaps increase productivity of your staff - than you are on the right track. Put it all on paper and choose wisely.
I create Line items for each phase of the workers it is to be completed. Each item will be in the order of construction. Then its a matter of adding up the items to generate a total. That total can be used in any way you wish.
Salaries for team members on your project
Specific materials, supplies, and equipment for your project
Travel to perform work on your project
It looks like there are two questions here:
Estimates by most contractors are complimentary. Find three experienced professionals for your project that will provide a complimentary estimate for the projects you want to perform. Take the average of all three and put away 30% extra for any unexpected costs/issues. Example: If you want to remodel your bathroom company A estimates 10K, company B estimates 7K, and company C estimates 8.5K. The average is 8.5K, so you should have 8.5K plus 2.5K put away for emergency/just in case. So total, your budget should be 11050.
Professional contractors use estimate software. We go out an take the needed measurements to be inputted into the system. The software, in most cases, is designed to base pricing off of labor and materials in your area. Each line is specific too and has its own code. For example, lets use floors: a contractor has the ability to select vinyl, laminate, ceramic, or porcelain tile in the system and then type in the measurements and the system calculates the approximate price of materials, labor, and markup (profits for the business). All the client will see is materials and labor, but if the system is correctly used a contractor should never run into the issue of going negative on a project or underbidding. If you notice a quote is significantly lower than the other two companies, they are most likely going to run into this issue, which may be problematic for you as the homeowner. This is why you never want to go for the lowest bid.
We can’t speak for other contractors, but our process involves a four step process as follows: a. Site Review, b. Opinion of probable costs, c. Specifications and d. Final Sworn Contractors Statement. This is an affidavit that can be used with all lenders, appraisal companies and of course the home owners themself.
Cost per square foot usually includes materials, labor, overhead, and profit for a contractor. And yes, there are other factors such as difficulty or the project, debris removal and liquidation, safety hazards, specialty equipment and tools, and a whole host of other areas that have to be addressed when looking over a potential project.
