Bidding- Is my husband wrong?

[Wifey]

My husband recently started a framing business and we are having a little disagreement about the bidding. He is mainly a subcontractor. He charges around 2.75-3.15 per sq.ft. plus he charges for extra's like, stairs, porches, skylights, ext. He also charges for gas, equipment fees. But it is only enough to cover the costs. I feel that he should take his total and mulitiply it by 15%. So he has more of a profit.He feels that it is outrageous and does not know if that will be accepted by the general contractors. Is this normal to charge for overhead and profit? Or is this "included in his sq. ft. price? And how should we show it on the estimate? Also is there anything else that he should be charging for? Materials are supplied for him. Please help!

[mdshunk]

I don't know what all is in a framer's price, but your's is way low. I'm in south central PA, and it's about 8 bucks a square foot here. Maybe you should move.

[Tom R]

I feel that he should take his total and mulitiply it by 15%. So he has more of a profit.He feels that it is outrageous and does not know if that will be accepted by the general contractors. Is this normal to charge for overhead and profit?

He definitely SHOULD be charging the 15% profit, - - no sense being in 'business' otherwise.

Whether he 'posts' it as such, - - or just adds it into his sq/footage numbers is up to him/you, - - just make sure it's in there.

Of course, - - if that is the 'prevailing' rate out your way, - - it may indeed be tough to suddenly 'up' it.

Try to find the 'balance' of making the money you desire, - - and staying busy.

He shouldn't be 'timid' about wanting to make a profit, - - the guys he's working for do.

[Tom R]

By the way, - - WELCOME to both of you to the forum!! :wink:

[giddonah]

just to be a pita, you would actually multiply by 115% :P

welcome to the forums. :lol:

[Thumper]

However... if you are just starting into the business sometimes it's to your advantage to build a name and reputation for the first couple of years then work on the margins accordingly... if GC's like you work while their shopping for cost cutting subs they may also retain you later for additional projects as your margins increase. around here frame crews are about $9.00 sqft(cdn) for basic projects.

Hey doesn't it state somewhere in the fine print of the marrage contract thet the wife is Always right anyway :wink:

[ODDJOB]

The Two rules of marriage
1. The wife is always right.
2 When wife is wrong, refer to rule #1
:D :D :D :D