All of our projects are highly customized, so project budgets range from client to client. We find the cost is highly variable due to factors such as material finish outs, and in-progress discoveries or challenges.
Oakbrook Builders estimates the old fashioned way – full quantity take off, materials pricing, and leveraging our in house database for accurate estimate from concept to permit.
I try and get a very clear understanding of what they hope to have as a finished product, I do both residential and commercial design build projects and every client is different. My approach to both stays the same, what do they want, need and what is a realistic budget that the client can afford.
As a custom design/builder, all our projects are different so there is no simple and accurate formula for estimating costs. At the beginning of the process, to get an idea if the project is within the clients’ budget, we can do a ballpark estimate based on the overall square footage of the project. To get to our final estimate, however, we do a very detailed estimate based on all the specifics of the work, which takes a lot of time and effort.
I generally use Homewyse.com as a template. These are average costs for materials and labor per zip code. They aren’t my final bid just a template. My final is based on hours for each project, materials for each project, and labor costs.
What ever your budget is add 20 percent.
If you do not use it I will feel good.
If you use it you feel OK that you had it in Budget.
As we work together, you will witness the professionalism, experience and integrity that SGI & Company, Inc. delivers to every project. This will become the basis for a strong, confident relationship that will make working together a pleasure.
Once a project manager has been assigned to you he will accompany you throughout the whole project. Through daily interaction we try to maintain constant communication and be attentive to your special needs.
For your protection SGI & Company, Inc. is State licensed, insures, and bonded. Our team includes remodeling specialists, experienced architects, engineers, and project mangers. Our staff is at your service, available to answer questions and to offer support any time.
We don’t have a strict formula. Our most powerful estimating tool is experience. For example, we have gut renovated so many Brownstones that we can just compare projects to our past work. We have likely done a very similar project in the past year and that is a great help in estimating.
We don’t have a strict formula for budgets. Instead we go to the home and ask tons of questions. We learn what they like and don’t like and take measurements and photos. We come up with a work scope and estimates that are tailored to each project and price in materials when we are shopping with the client.
As a general contractor, we know the direct cost, and then add a burden (profit) cost of 30 percent to the project – it’s that simple. We hope to get 30 percent, but typically have to bid more in the 25 percent range.
We have used this formula since 1988 and it’s very simple. We price our cost for materials and labor, and add our company’s overhead profit to this number. Sometimes we are able to discount a price when certain materials are on sale with the manufacturer, or if there is a promotion. Labor costs are a constant, but keep rising. This is the sign of a healthy economy. We are EXTREMELY competitive in our pricing, and have a great history of winning jobs instead of our competitors. One thing we will not do, and that is to compromise on quality of products or installation. We do not cut corners.
Always check how much money you have on hand - that is how to do it.
Every job we take is personal and can depend on a multitude of factors when it comes to price. We believe that formula only creates a cookie cutter company.
Look at what you want, tally up the cost and get with a trusted friend who can point you to someone they trust, for labor cost,
20% put aside for home remodeling annually if needed. And, another 10% on what ifs. Because there is such a thing as unforeseeable cause.
We use an estimation software program that integrates real time material pricing in the zone where the project is being constructed. This estimate breaks down materials, labor and accounts for overhead in that price.
I, like everyone else, have excel spreadsheets, but because I am a small company and do the work myself, I depend on my 43 years of experience and build the project on paper estimating time and cost to create both a budget and a schedule.
Again…DRAWINGS…are the only sure method for a proper “Take-Off” and valuation based on that take-off. Square footage values as told to you by your hairsalon stylist that has a friend that knows someone that is in the business is NOT justifiable or reliable information. When someone calls me and asks for a price on a 2,000 sq.ft. house and I ask if drawings are prepared…should they say…“No”… then my bid is usually about $2,000,000.00.
The response is usually…"$2Million!? You can’t be serious!!"
“I am…but you’re obviously not” is my response.
Guesstimates are a no.
Permit values per sq.ft. of finished floor area are a no.
Fair Market Value in the tax assessors office are a NO!
There’s nothing easy about getting a budget to the nickel unless you propose construction based on drawings that are based on a budget.
Don’t engage anyone that pulls a number out of the hat based on rough floor dimensions…unless you’re talking about just the value of the rough floor. Estimating is art and science mixed with current pricing…and that equates to time and work to prepare. If you’re tire kicking a dozen contractors…you’ll get a huge variety of prices and budgeting items…pretty much just to shut you up. Legit contractors do not give quotes on a phone call for a whole new house or just a addition or remodeling. It takes a set of plans to take off and compile.
I firmly believe that if I take a day or two to measure out, sketch out and then value the costs of construction…it will only take place with your signature that acknowledges that I’m providing a service for a set $fee. It may not be YOUR style to take a free estimate and shop around with a dozen other contractors…but just think of the other 200,000,000 people that will. It’s human nature…so to avoid any issues, Turner Builders will not perform free estimates. I don’t need to use it as a ruse to bring someone to my door…it’s not fair to you nor the way of doing business with me as I could work for the balance of my life on “Free Estimates” and never see the first job from it. Just like you…our time and trade is worth paying for.
Happy to give advice all day long…that should be just part of the tradition. But when it comes to working out the long strings of numbers for estimates…it’s fools gold. Do not take the lowest bidder…most likely the low ball isn’t experienced enough to give an accurate count or worse, have no intentions of finishing the job via a bogus company after taking huge retainers (see above). Don’t turn your nose up on high bids…they may know something that you don’t when it comes to your expectations which is why the DRAWINGS are of utmost importance.
I base my pricing off of my hourly charge with square footage and materials.
Labor hours + sub-contract labor + cost of core materials + 20% overhead = Total. Does not include cost of finish materials, Special Inspections, Architect Plans, nor Structural Engineering Plans nor cost of Building, Electrical, Plumbing, Parking, Mechanical, HVAC or Title 24 Inspections. Mandatory Seismic Upgrades have multiple Special Inspections that are done by outside Structural Engineers, plus added inspections by SEOR and DBI.