Hi all,
I’m looking for a rule of thumb about residential construction costs. I recall reading somewhere that labour comprises about 60% of the cost of new construction, and that for renos it can be more. What do you think? Any opinions much appreciated.
Marc
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You picked a heck of a subject for your first post. Hope you have really thick skin.
To answer your question, there is no good answer to your question. Really. There's not.
I've had renos that were 95% labour and others that were 50% labour.
If you take an average # and use it on any individual job, the results when you total up the actual receipts are likely to be somewhere between disastrous and awful.
Naive but refreshing !
Price a treated deck against a composite deck and get back to us with a rule of thumb.
I would say the only rule of thumb for pricing is there is no rule of thumb. You should check out this book: "How Much Should I Charge?" by Ellen Rohr
http://www.barebonesbiz.com
It's uncanny how no matter the year it seems to work out to 1/3 material 2/3 labor. Of course there are exceptions. I'm also "small" potatoes.
54.98264% labor.
k
I dont wish to appear rude but if you dont know you should not be bidding.
This is a good way to get in trouble.
When i was young i would figure the materials then go over how long each task would take me.
At any rate figure higher and risk not getting the job vs getting it,
If you do get it.....Panic, chances are you missed something, Dont ask me how i know this;]
bobbys
When i was young i would figure the materials then go over how long each task would take me.
And now that you are older, how do you do it.
Do you keep historical data, or is it all in your head.
I am not trying to be a problem, but with remodeling the isn't any other way.
Hanging a SF of sheetrock in an upstairs remodel is not the same as new construction.
Same with roofing. Some roofs are just a PITA.
Rich
Most of it is in my head after 35 years but theres so many different tasks its hard to explain. Roofing is easy to figure as i have a per sq formula for mat , then my labor, Then profit, Then the amount i wish to get if the job is worth it, Im always the highest but im also the longest still in biz. With carpentry i don't break down each task anymore its more like i know its going to take 2 men so many days to Lets say remove a wall or replace 8 windows, Im always close the more variable would be whos working for me. The biggest monkey wrench in Remodeling is finding rot or strange stuff what others have done before me. Even a homeowner lurking around and asking Q every 5 minutes can slow a job down, or a neat freak{not that i dont keep a clean job}.
You haven't filled in your Profile and for your first question you show major naivete. That means A) you're a homeowner trying to figure your contractor's costs/ pricing and how to chisel him/ her down or B) you just hung out your shingle and are making a go of it.
If A, then you're a moron. You aren't considering the other costs involved in running a construction business. Jobs are not priced according to materials and labor. There are insurances, rents, taxes, licenses, healthcare and a host of other costs which are not addressed in your formula. Also, as for "renos it can be more". Wrong. For renovations it WILL BE DIFFERENT. With "renos" there are the costs of protection, working in a confined/ limited space, greater material overage %, demolition and then assessing, on the fly, what solution is most appropriate.
If B, then you're a moron. Work for someone for a few years and take note of what is involved in completing a project. Once you have that down, try to get a job estimating projects. Learn what goes into an estimate and why. Learn about the A crew vs. the B crew and why their costing differs and who gets what.
Look, we all have formulas of one sort or another, but something as simple as Labor vs. Materials is a formula for disaster. Using that formula and the contractor is certain to be out of business by the second job.
One last thing about formulas. If you're a roofer you may be able to determine a preliminary "rule of thumb" but that R of T is certain to be different from the painter's or the sheet rocker's or the electrician's or the plumber's or the cabinet maker's or the... Get what I mean? Plus every renovation has a different compliment of trades and depth of involvement. There is no one size fits all.
Hope this helps,
Frankie
Flay your Suffolk bought-this-morning sole with organic hand-cracked pepper and blasted salt.
Thrill each side for four minutes at torchmark haut. Interrogate a lemon.
Embarrass any tough roots from the samphire. Then bamboozle till it's al dente with that certain je ne sais quoi.
Arabella Weir as Minty Marchmont - Posh Nosh
A little harsh don't you think? Otherwise great advice. I am looking at pricing a completion on a foreclosed homeowner remodel that tanked. Could put two $139 vanities (with tops) or a $800 or so 60" one. Labor would be fairly close. Sort of like Outback Steakhouse, "no rules, just wrong".For those who have fought for it Freedom has a flavor the protected will never know.
Marcjb
Ignore that Frankie behind the curtain. He is just being rude and truthful. LOL
It can be rough on BT sometimes.
Rich
marcjb -Upon further consideration of your initial post I realize I may have been a bit too aggressive. I apologize and would like to readdress your inquiry -Dear marcjb,While scanning BreakTime this morning, your post caught my attention for its lack of thought, effort, information and ambiguous perspective...; )Frankie
Flay your Suffolk bought-this-morning sole with organic hand-cracked pepper and blasted salt.
Thrill each side for four minutes at torchmark haut. Interrogate a lemon.
Embarrass any tough roots from the samphire. Then bamboozle till it's al dente with that certain je ne sais quoi.
Arabella Weir as Minty Marchmont - Posh Nosh
Frankie
That's better.
It was his 1st post. We don't want to scare him off.
How about.
marcjb -
While scanning BreakTime this morning, your post caught my attention. The % of labor to materials has been discussed here many times. People who are new to contracting think there is a short cut to figuring labor cost. And homeowners are always trying to get the most bang for their hard earned dollar.
But the truth is that labor cost are so unique to each job that it is impossible set labor as a percentage of material costs.
By the way Welcome to Breaktime. We are always here to help, advise and embrass you, depending on our mood. LOL
Rich
Now lets all hold hands and sing kumbahya.; )Moving on.F
Flay your Suffolk bought-this-morning sole with organic hand-cracked pepper and blasted salt.
Thrill each side for four minutes at torchmark haut. Interrogate a lemon.
Embarrass any tough roots from the samphire. Then bamboozle till it's al dente with that certain je ne sais quoi.
Arabella Weir as Minty Marchmont - Posh Nosh
I don't price with any rules of thumb.
too dangerous.
what I do though ... is look back and see who close the rule of thumb was.
I've said it here before ... still amazed at the number of times the old rule of thumb ...
cost of materials, double than for labor ... and add them together
is real freaking close in the end.
not all the time ... but on "basic" remodeling jobs ... more times than not.
then again ... I may just be a moron.
Jeff
Buck Construction
Artistry In Carpentry
Pittsburgh Pa
Jeff, I always was suprised how close that worked, until it didn't!
Jeff
After doing a post-job summary: sometimes I am a genius and somtimes I am a moron.
LOL
Rich
Labor and Materials works for Mike Holmes
John
Over the years that has been my experience as well.
Also has been my experience that the 1/3-2/3 for new construction will get you in a ball park figure. I still figure every item , but when done run it past the two old rules, just an insurance policy to see if i have forgotten anything.
They can't get your Goat if you don't tell them where it is hidden.
Well, gentlemen, I guess it takes all kinds. Thanks for your interesting, and revealing, thoughts.
To give you an idea on reno's today we had to turn the water off to 4 apartments to change a bath tub valve. All the draining and running around the building and keeping people happy took hours.
But if the builder had install shut off valves for each apartment, job would have taken 30 Min's. So how do you do this with % of markup?
btw ..
doesn't work real well when bidding demo ...
Jeff
Buck Construction
Artistry In Carpentry
Pittsburgh Pa