Does this sound crazy???!!!!!!

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Hello,

I'm bidding on a new home. Just finished the estimate. First new home to do with my new company.

Home is approx 5,000 sqft. My material is $17,000 with tax and mark up.
My total cost in estimate for labor and material is $47,500

I used craftsman estimator with a crft/hour rate of $90.00 per hour.

Does this sound right? Is my hourly wage to high or low?

Thanks you.

static
 

iwire

Moderator
Staff member
Location
Massachusetts
Hello,

I'm bidding on a new home. Just finished the estimate. First new home to do with my new company.

Home is approx 5,000 sqft. My material is $17,000 with tax and mark up.
My total cost in estimate for labor and material is $47,500

I used craftsman estimator with a crft/hour rate of $90.00 per hour.

Does this sound right? Is my hourly wage to high or low?

Thanks you.

static

I am a novice but that does not sound right, my labor rate or cost would be in the upper $40s which is high, at the end of the estimate I would add over head and profit. I think you have overhead and profit in there twice.
 
i see.

i see.

Thanks for the reply. Is that $40 for 2 guys?

My program has a spot to enter $$ for craft/hr. Are you suggesting to use mid $40 instead?

thank you
 

hurk27

Senior Member
Without knowing the scope it would be kind of hard for me to know, but 338.8 man hours for a 5k sf. house seems allot, unless it has touch panel lighting control, tons of cans, chandeliers and many extras, I can't see a 5ksf house taking over 160 man hours, and that would be one J man and one apprentice which would be different rates, you wont win many bids charging service call rates for jobs your spending straight time on (doing full days with very little driving back and forth)
With service calls you are covering the driving and idle time between jobs.

Now for the biggest problem and I have seen it here on this board so many times, each and every area of the country will be different in what the going rate will be, you will need to find out what the going rate should be for your area and make adjustments for it, otherwise your not going to hit close to what others are charging and will be high missing many bids.
 

Dennis Alwon

Moderator
Staff member
Location
Chapel Hill, NC
Occupation
Retired Electrical Contractor
Thanks for the reply. Is that $40 for 2 guys?

My program has a spot to enter $$ for craft/hr. Are you suggesting to use mid $40 instead?

thank you

I don't think Bob is saying $40/hr he is saying his labor cost would be in the upper $40's--meaning upper $40,000.

You have figured 42 days to do this job. It is pretty hard for us to tell you if that is reasonable if we don't know the ability of your workers and what is involved in the house. I can tell you that it seems like a lot of hours for a 5,000 sq. ft house but again it would depend on design and how much stuff is in it.
 

satcom

Senior Member
Here is a link for labor rates you can use with the craftsman program, http://www.pas1.com/pdf/srate.pdf you will still need to know your overhead and operating costs, to plug in and the desired profit your looking for.
Residential new construction is a very competitive game, you may need to sharpen your pencil and learn how to live on peanut butter.
 

augie47

Moderator
Staff member
Location
Tennessee
Occupation
State Electrical Inspector (Retired)
Here is a link for labor rates you can use with the craftsman program, http://www.pas1.com/pdf/srate.pdf you will still need to know your overhead and operating costs, to plug in and the desired profit your looking for.
Residential new construction is a very competitive game, you may need to sharpen your pencil and learn how to live on peanut butter.

:grin::grin::grin:
 

guitarchris

Senior Member
I think with dealing with man-hours or craft-hours ( not familiar with that term) that is the $ you charge per man, per task. example: if it takes 6 hours to do a service change and you have 2 men on the job you will have 12 man-hours. You then can multiply that by your Man-hour rate, mine is $40/hours. sometimes for billing using manhours can be very useful, like when you don't have 2 men on the job the entire time or you add a 3rd man for half a day.
 
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