No, that is not really possible. We normally use historical cost data and perform a complete material quantity takeoff.
There usually isn’t a formula, as each project involving old homes is unique. One can use some ballpark-per-sq-ft numbers and get about 75% of it right.
Est Costs + 20 % should cover any extras
If you are asking how an estimate is created and presented to the customer for the entire project, then DDT Home Transformations uses a standardized model of pricing for normal business practices. In other words, DDT Home Transformations takes into our costs (material and labor), overhead and revenue for the business to continue providing great services to our local community. However, if you are asking about how do we determine a budget for materials within the project, then we, first, determine what the client is wanting; i.e., middle of the road, high end, etc., and then, second, we provide a budget accordingly for the material. For example, if a homeowner wants a bath remodel with non-specific items, then we normally use average-to-above average pricing for the material, such as $200 for a toilet, $600 for a vanity w/top, $100 for a vanity mirror, etc. We notate the budget in the estimate (so the client knows exactly what we budgeted for - when we are purchasing the material) and we include the budget of the material (budget * qty.) in the estimate. So, if the estimate for a Master Bath remodel is $10,000 (in this case), then the client would be responsible for the payment and DDT Home Transformations would be responsible for the material and construction.
I use: cost of material, cost of labor, estimated time to complete, plus overhead and profit.
Our price per sq. foot formula comes from the average cost of materials per foot, labor and business costs all wrapped into one. For example if a job is 1000 sq feet, average material cost will be about $600, sometimes it’s more, but often times it’s less. That allows us to then factor in truck costs from insurance to gas, and also labor costs for hiring one to two helpers. At an average of $1.20 per square foot our total would come to $1200.
We typically tie our fee to project size in Finished SF
We bid each project differently depend on what client need, it’s most of the time labor/material.
Answer from an architect: design of a project goes through 4 phases and each phase results in a budget and cost component: Preliminary phase is an information gathering opportunity and general budgeting $/sf numbers are used to begin; Schematic/Conceptual phase is where the project direction begins to formulate and here is when the building contractor comes on board and applies a more specific $/sf refinement of the budget; Design Development phase is when the project systems and materials are developed and details are worked out, a more precise budget is developed based on these specifics; Construction Documents phase is the final set of drawings and specifications that allow the project subcontracting to be competitively bid at which time a construction contract is finalized with a firm construction cost.
We first take the time it will take multiply it by the cost of the project multiply by the peple who will work on it. It is thus that simple.
At this time our “formula” remains in the brain of Steve Minchew; he does all our pricing. We will eventually begin working with a bidding program once we get his knowledge into one that works for us.
I do not use a formula; every job is different and trying to put them all into one shaped box simply wouldn’t work. I’ve been in the business for 16 years and work extremely hard to keep a very strong handle on trade prices which allows me to estimate quickly and accurately.
We have been in business since 1986 – so it is a combination of past experience, SF pricing and good subcontractor pricing.
Generally, there is no specific formula, as most projects are as individual as the client. We try to put together a detailed scope of work and then price that out with multiple sub-contractors and suppliers in order to get a fair and reasonable cost projection. We generally do not use the least expensive subs available, they are chosen for the quality and workmanship they provide and our past experience with them.
The formula is typical in the industry of materials, labor and miscellaneous expenses such a permits etc. and knowing what the problems are that may arise and prepare the client ahead of time.
Yes, of course there is a formula we use to come up with a budget otherwise we would be all over the board.
There are many approaches to this and we use different solutions depending on the situation. For most projects we line item each task and use a multiplier per sq ft or linear ft. We then have a multiplier for profit and overhead. Our spreadsheet factors one multiplier for materials and another for labor. We have a time per task equation built into our spreadsheet. This only works with a very detailed scope of work. In a full remodel project we have a price per square foot number we use that gets us close. We use overall square foot equation to ball park a job with a client but it is not accurate enough to bid a job. There are too many little details that must be considered to insure profitability.
I use a program called Xactimate to do all my estimating. Xactimate uses time and material formula based off zip code
We have three internal crews bid therefore letting experience dictate expected cost.
I do a real cost of labor and materials, plus overhead and profit formula. I have found over the years that even though pricing projects by the square foot works well for the contractor, the customer can end up paying more, because the pricing is set to cover a wide range of material and labor cost when using a per foot formula. That means the customer may over pay for a lower cost material/labor, or the customer may think they are getting a high quality job, when they really aren’t. This is one of the things that cause customers so much confusion when it comes to pricing. Generally large companies have a much larger over head, so their prices tend to be higher, and because they are using employees and or sub-contractors, that doesn’t always mean you are going to get the best job. There are also a lot of guys out there that pass themselves off as licensed contractors, but they are not, and some that are licensed, but use low paid unqualified workers to do the work. Most of these guys will offer low pricing, but remember you get what you pay for. Another factor in pricing is in the materials being used. There are some great new materials and practices that can make a great difference in the quality of the job and how long it will stand the test of time. These materials tend to cost a little more then the older products that don’t work as well, and if you have been around a little, you can also learn some tricks that can reduce the cost of a project, but many times these tricks don’t hold up. Customers have to do a little homework before hiring a contractor. Money is money and saving $1000 on a $10,000 job could cost you a lot more down the road, if you hire the wrong guy.