I am in the process creating a construction company. I am currently completing my first home, a 5200 sq ft custom. I have had some difficulties with my proposed bid (not making enough to cover all my expenses). I have been told that this is common with “Your first home”. I am looking for any advice as well as any good books that can help in my beginning stages. I am building in a market that is booming, so finding work at the moment is not the issue. I just want to make sure and get off on the right foot.
Thanks for any help and advice that can be offered.
Andrew
Replies
Do you feel that your problem is bidding too low, or is it that your system is not efficient enough?
Other things to consider are how well do you address delays, change orders, communication with your client, employees, and subs.
I would ask your client to show you the other bids that they received. See if you left significant money on the table.
I would also interview your subs. Ask them how efficiently they thought the project was managed, and ask for advice on smoothing out the process.
Are you trying to do too much "in house" thus slowing down the job? Are you buying at the right price, especially the cabinets, appliances and fixtures, consider allowances for these items to protect against overspending without reimbursement.
I think you will find that all things can always be improved. Experimenting with a 5200 SF house is a difficult way to learn as you go, but if you survived, the next one can only go better.......Good Luck!
Last note: Join NAHB, learn from your peers at every opportunity.
You came to the right place. There is a ton of advice here for a good price.
I suggest you spend lots of hours reading through former threads.
Almost anything you want to know will be found there. Almost anything you could ask has already been addressed.
Allen in Boulder Creek
Edited 11/29/2005 11:37 am by moondancer
millhouser
You stopped at the right place plenty of advice here.
I am in a hot market place also (Southwestern Montana) plenty of work however most of it is being built for wages and low at that.
It seams in effort to be competitive working for wages is the best it gets.
I am convinced that most contractors in my market are satisfied doing projects for their cost – (10%) this allows them to fund their clients project through a revenue sorce from their second job.
Good luck,
Tom
Working for nothing is not getting any cheaper.
Edited 12/4/2005 4:37 pm ET by TomMaynard
Seems as if things can only get better.? anyhow where in SW montana, i am in Bozeman. I do have some interesting things coming up in the future.
Andrew
Millhouser,
I am located in the Bitterroot valley.
TomWorking for nothing is not getting any cheaper.