A very good customer for my handyman services has asked me GC two larger projects for his home: Tear-out a suite to the studs & rebuild into a media room including new framing (interior & exterior) and working with subs who I hire to finish the room;
and;
replace the rotted supports of the glassed turret over the hot tub and do all the deck modifications he wants done.
He wants a time & materials system because he is going to change his mind a lot, so he will be paying me my regular hourly fee, plus all the costs for hired people & materials, plus a contractors fee.
Usually, I do small projects and either do them myself or with one or two people I know. This is going to be bigger because it’s too much for me alone and he wants it done quickly.
My question: what percentage would I add on for ramrodding this job?
Quality repairs for your home.
Aaron the Handyman
Vancouver, Canada
Replies
Off hand....15% added on materials and subs is standard around here.
On top of the subs quote.....remember.....you will be spending/wasting tons of time dealing with and answering Q's for the subs involved. My theory......make mone on anything that comes thru the door.....as you'll spend time outta your day on each and every item.
Job I'm on right now is a new "relationship" subbing for a GC I've worked for in the past. As the job is progressing......he's gone more and I'm becoming the go-to guy. I didn't bid it this way. We haven't had a big sit down yet....but I've pointed things out bit by bit..and the next one will be bid differently. He was used to working with the lead carp program.....I priced things as an in and out sub.....but I'm doing lead carp duty. Which is fine..as long as I start getting paid to babysit the job.
Not sure how much experience you have in dealing with other subs.....but everything will have a question that needs answered. Little questions add up.....especially if the decision maker isn't on site. Interuptions add up...little by little......
Add at least 15% to your time estimates too. You will be delayed. GC's get paid for a reason...you should too.
Maybe just a time on the clock fee? Same for your labor and brains? You're done when you're done?
Might be the most simple. Just doccument things daily.
Jeff
Buck Construction Pittsburgh,PA
Fine Carpentery.....While U Waite
BTW...sounds like a great opprutunity to expand your scope of work. Life's much easier finding 12 four week long jobs than finding 50 or so 1 week jobs.
Get's even better when ya start booking jobs that are measured in months instead of days!
As long as you charge enough....and they end up paying......
JeffBuck Construction Pittsburgh,PA
Fine Carpentery.....While U Waite
aaron... one guage would be insurance restoration work.. where 15% overhead and 10% profit is commonly acepted... on top of:
every cost you can associate with the work...
BTW.. it's pretty hard to make a living with those markups unless your basic hourly rate is substantialMike Smith Rhode Island : Design / Build / Repair / Restore
Mike, when I do estimates, I definately add 15% overhead 10% profit; - sometimes 15% profit or more on very small jobs.
The other thing about this job will be that I will be paying on my credit card for the air miles, and he will pay me back the end of the week.
Also, this family is going to change their minds a lot. Extras will abound.
As I wrote to Jeff, I like to reply in thanks.Quality repairs for your home.
Aaron the HandymanVancouver, Canada
I'm answering everyone who posted. Politeness.
I have already told them I will be documenting my at-home computer time so they can see what I'm spending.
They have intimated that my on-site time will be the "wage" and the rest of the time will be on the contract. Since the jobs will be split, they will be able to see how it works on the first part, the tear-out.
My whole plan has been to learn more & more about older houses and learn from subs, and take on bigger projects.
I'm 58 and I don't want to NEED to work with my hands the rest of my life.
Thanks.Quality repairs for your home.
Aaron the HandymanVancouver, Canada
When I do a project management job like that, I consider it to have less inherent risk to my pocketbook because I am not working under a bid. One of the resons for high profit is high risk. Lower the risk and I can lower the profit taken.
I am still on the hook with my insurance though.
I charge an hourly rate of $38/hr (likely to go to 40 soon) for myself and men which includes any comp and labor burden plus a couple percent of profit.
I figure that my other overhead is _X_(you do your own here) so I add _X_ plus _Y_% to add to each item handled to provide me with my overhead expense and a little profit. That figure comes to a little less than new work.
ie. I might suppose - for discussion purposes - I'm not telling it all here - that I charge six percent on PM jobs, eight to ten percent on new work, and twenty to fourty percent on remodel contracts where I could have more risk.
With the T&M or PM job, I am getting paid hourly for the hand holding and research that might be required so I can do less on the "fee"
Excellence is its own reward!
Aaron-
We do pretty much the same as Piffin on this type of job. Our hourly rate is applied to both our own work and to the project management part of the job. Since this rate covers the bulk of our overhead and profit, we need only mark up materials and sub costs 10-15%. Just make sure that any estimates that you give include this managment cost and make it clear that this cost will be paid by the owner. You should have no problem convincing the owner of the value of these services.
Aaron, Piffin's right on, but I would consider whose account is paying subs and material when thinking my profit, the GC's responsible.
Piffin, is $38 what a job superintendant gets where you are? As good as you are, you should get more then that. I charge $45 as a owner/builders' PT super.
SamT
I go as high as 75/hr for simple consultation, inspections, reports, and the like, but with a whole job, I am making a few bucks off each the crew at 38.
Some people think I'm a bargain while others think the bill is too high so I guess I'm about right there. Need to work harder to idntify the ones who will think that I'm a value investment..
Excellence is its own reward!
Have you ever had a client say" Man, your too cheap, let me pay you more!"? It always, "your so expensive, I can get some one else". They always leave out the fact tey are talking about the college bound clueless nephew or some other sort.
Actually, yes, I have been offered more.
several jobs where the final bill was paid rounded up small amounts.
one job with a ten thousand dollar bonus at the end
one with a five thousand dollar bonus at the end
I've had customers give me tools, too..
Excellence is its own reward!
Do you try to educate your clientele to the fact they are actually paying you for what you know not just what you can do. They will pay a lawyer $150/hr plus for what he knows.
"They will pay a lawyer $150/hr plus for what he knows."
At that rate, that lawyer probably doesn't know all that much. Good ones bill at $650/hr!
Jon
Thanks for the help.
I will be documenting all my time on the job, both at my home and on site. We will be going from there.
I'm heading for 15% GC fee plus my time.
It's a chance to build my business since these folks are wealthy young people, and a lot of work could come my way.Quality repairs for your home.
Aaron the HandymanVancouver, Canada
You are a handyman, not a GC. Do yourself a favor. Pass this on to a reputable GC, get a finder's fee, and keep a happy client.
Thanks for your input (no sarcasm).
I have 2 buiders/GC who are helping me with subs I do not know personally, who they do: and if I have a problem, they will help.
We all need to learn somewhere, and these are 2 fairly easy jobs.Quality repairs for your home.
Aaron the HandymanVancouver, Canada
Take a gander at last Friday's WSJ "personal journal" pages on handyman rates and results - go from there.