bidding a job

[sorge]

I am new to the construction industry. Recently I started taking jobs on the side doing remodel jobs for friends. Word has spread and now I find I have a year's worth of projects. When I started out, I was doing it in my spare time and charging next to nothing for my labor. Now I have decided to make it my full time work and wonder how to bid the jobs appropriately. I have heard that the standard rule for quoting is to take the cost of materials, multiply it by 3 and add that back to the materials cost. Does this formula sound correct, or is there a better way to give an estimate? I would like to give the best price without giving my time away. I have a kitchen gut and remodel job coming up this week that I need to give an estimate on. I have the cost of materials, how can I determine what to charge for labor?

Thanks,
Dan

[montytx]

Havent heard of that. As a remodeling I bid out my cost, overhead and labor based on days I expect to be on the job. Between 350-500 a day. If you were bidding based on your formula you would be broke pretty soon. I also bid on square footage. A kitchen remodel usually between 100-150 sf. Rooms 70-120sf.
You have to figure out your market and how much you want to make.

[Tom R]

Yeah, I've heard of that (that 3:1 ratio hasn't changed in at least 30 years), - - 4:1 would probably be closer these days, but that's just an overall 'mean' average, - - no science to that, - - just a crapshoot on it's best day.

Here's what I would use as a rule of thumb if you're not sure, - - figure out how much you THINK your materials cost and multiply by 1.25, - - then figure out how much time you THINK it will take you and multiply by 1.5, - - then multiply that times how much you want/need to make per day and add it to your adjusted materials cost.

Document your time on that first job, - - see how close or far off you were, - - and then simply adjust your 'multiplying' factors for the next job.

Not based on science, - - but will level out within a few jobs based on consistency.

[sorge]

Thanks for the feedback. Your responses have been very helpful.

Please take a quick look at what I'm doing.

The room is 144 sq ft (16x9).
-I'm tearing out the plaster walls and putting up drywall
-removing the knob and tube wiring
-adding a subpanel to the electric box to run new electric to the kitchen
-new KitchenMaid cabinets
-new Staron counter tops with sink
-new laminate wood-like floor
-new lighting
-new dishwasher
-new microwave range over stove
-garbage disposal
-R.O. water filter
-new baseboard and crown molding
-custom antiqued finish on walls

This is an idea of what needs to be done. My materials cost is around $14,000. I was wondering if there were any places that someone could recommend to buy at wholesale or with a good contractor's discount. I would like to get the materials cost down.

I was estimating my labor around $20,000. Am I off base here, or does that seem in the ball park for what I am doing?

Thanks,

Dan

[montytx]

For a kitchen that seems plausible. I usually bid kitchens around 150 per sf labor ( for a standard kitchen). Which puts you in there. Of course if your are completing you may want to go to 140 or 130.

IF you want to save some money go to ebay and buy some HD or Lowes 10% off coupons. I do it anytime I have large jobs. For 15$ I can save several hundred.

[sorge]

montytx,

Thanks for the quote info as well as the HD/Lowes 10% coupon deal through ebay. That will really help!

Dan