*
So what’s the scoop on how much to charge for general contracting. I’m guessing that a guy would simply add a certain percentage over the cost of all the subs. As you all know there is a ton of overhead in expediting/ building. What’s the magic #?
Also bidding jobs. I’ve got no problem getting my bids on the mark. The problem lies in not getting the job or just spending too much time on them with little return. Do you guys charge for bidding? I haven’t to date but feel like changing my tone after spending 40 hours on a series of bids for the same people. The dilemma is either I don’t get paid for the time invested in bidding or I don’t even get the bid if I charge when others might do it for free.
Looking for asperin
Replies
*
David,
There is no magic number and guessing what to add may be why your bidding isn't as succesful as you want it to be. It all comes down to sale price minus cost minus overhead. Theres your profit. Cost and overhead are always variables and change from pro to pro. There are books available that talk about bid ratios which may be of help to you. Check your local bookstore or NHBA website. Some guys swear by the Means Labor Calculators, even though I feel they're kinda high.
As for charging for bids it would be nice if it were possible. The problem is that many people are use to the competitive bidding process. Charging for this time up front usually turns most clients away. Building a standard number into your bids for project overhead is the easiest way to recoup your time, if you get the contract.
*I don't know what type of work you do so this may not be relevent but the best way to solve your bidding problem is to stop bidding.Be the only "bidder". Cultivate your word of mouth advertising. Put up job site signs. You want you phone to ring from people that know and want you.Of course for that to happen, the work must be good, the personal service must pe excellent, and your customers must be left feeling like you're disney world.There's a whole college degree on estimating, bidding, sales, customer service, advertising, setting prices, and generally running a business in the archives here. Take a coupel of days and read it.
*> "Some guys swear by the Means Labor Calculators, even though I feel they're kinda high. "Interesting, I really like the Means estimating data and I use it extensively but I feel if you "swear by" it you will be on the low side in that you'll miss on a lot of the subjective stuff.
*
So what's the scoop on how much to charge for general contracting. I'm guessing that a guy would simply add a certain percentage over the cost of all the subs. As you all know there is a ton of overhead in expediting/ building. What's the magic #?
Also bidding jobs. I've got no problem getting my bids on the mark. The problem lies in not getting the job or just spending too much time on them with little return. Do you guys charge for bidding? I haven't to date but feel like changing my tone after spending 40 hours on a series of bids for the same people. The dilemma is either I don't get paid for the time invested in bidding or I don't even get the bid if I charge when others might do it for free.
Looking for asperin