Each project has it’s own formula depending on what the owner wants done, but the basic formula is: cost of material, labor cost, which is based on how many people are needed to complete the project, any special equipment that has to be rented, and if supplies are being delivered or picked up. All these things play a role in determining a price for a project.
Every project is different, budget can vary depending on style/design and different options.
Depending upon the trades involved it would be a man day rate and addition of materials plus any other type of overhead involved, unless otherwise agreed upon.
Installation into what type of surface (concrete, dirt, sand) as they all have different challenges and labor/cost effects on a job. Linear feet pricing for pool safety gates is the standard, pool nets is quoted by square foot and pool safety covers are by installation and material cost.
We use a $/SF to create a concept budget. We have developed cost and done many projects to ensure we understand what is needed to do a project
Rules of thumb from past results
I use several: standard rates for our industry and how long the project should take, plus material.
Create a list of wanted/needed results. Assess the length of time associated with such results. Add approx 15% of the projected cost to cover unforeseen curve balls and challenges.
Dollars and sense. If you are looking to remodel to bring you the most value, that’s one way. The other is if you are going to live there for years and you want it, we figure out how to give it to you even if it won’t help with the value of your home.
The budget is often determined by the homeowners immediate needs and their long term goals for their property.
Direct Cost = Materials, Travel, Direct Labor Cost
Indirect Cost = Office Cost, Equipment, Administrative Costs
Estimating the Indirect Costs
Question to ask Clients
Agreeing to the Brief
(Price of materials + cost of labor + overhead) x Profit Margin % = Job Price
Measure twice, cut once…
Material, Labor, Permits and 5% for incidentals.
Every job is different, but we typically build a budget based on our previous jobs with similar scopes. Given the vast variations from job to job, giving a price per square foot or something similar can often times be misleading. I prefer to build a preliminary estimate with allowances included for the major finishes involved in the project.
Cost of materials, labor, taxes, permits, and account for over-runs.
We use pricing models based on cabinet door styles and finishes along with options and accessories.
A linear foot model is also used to determine estimates.
Every job is different - so there isn’t a formula per se. We know, for example, how much a tub conversion to a walk-in shower should cost and then we take all the contingencies or challenges into consideration to determine a price. Our costs are generally for all the rough materials and labor - we can include finish material allowances at the request of the customer. Most customers prefer to order all their own materials (tile, plumbing fixtures, etc.) because they either want something unique or they think they can get the best price. Of course, kitchen cabinets and countertops are always included in a kitchen remodel, but everything else is at the customer’s discretion.
In the State of California, a contractor is not allowed to mark up a job more than 2x. So far, we haven’t had that kind of mark up on any of our jobs. We mark up the jobs to cover our costs, our overhead and to make some profit, while staying competitive for the market.
What each man makes and how long it takes.
We are flexible based on each individual customer/client needs
Quantity take-off method