Requesting Labor and material cost breakdown on job quotations

[nyhockey]

Not saying I like but that is life here. We have to buy correctly and watch man hours

 

[sparky=t]

bottom line is at best you get what you pay for.. If you pay for the high quality you have a degree of quality and assurance that the job will be done at a high quality . If you cut corners you have noone to blame but yourself for irritation factor.

"if it were heart surgery would you take the lowest bid?"

 

[nyhockey]

"if it were heart surgery would you take the lowest bid?"

Insurance Co will.

 

[dduffee260]

We do that all the time. We have to breakdown materials and labor on alot of projects and tax the materials only. I have no problem at all breaking out materials and labor.

 

[jim dungar]

I guess the primary reason for asking this I could think of would be to create a basline for all of the quotes from a labor perspective.

Then do not ask for prices.
Simply ask that the quote include an estimate of man hours.

 

[dduffee260]

Just because someone is low bid it does not mean they are going to give you the worst job. Come on guys, do your research. Ask around for references. Let me give and example. We are currently building a new shop. I got with 2 building contractors. One was not a fly by night person but he had a small shop with several unpolished employees. I could tell by the work he took me to look at that they worked hard but the work was just not really polished. His price was I believe $251,000 for the building and concrete. Then I go to another contractor. They have been in business for years, they have a superb looking building they work out of. They had the software that could price out and change on the fly anything you wanted on a metal building. I took one look at their building and told myself that is what I want our building to look like. I was expecting their price to come in at $300,000. After all, they did better work right? They were more polished right? Guess what, they came in at $189,000 with concrete. See they fabricate their own beams in their shop. This is why they could be less expensive but give you a better building. They made an investment in their business and it is paying off.

If we get low bid on a job we give the person the work we bid on. The largest cost on a our projects is labor. We try to make the best out of each employees time by controlling costs by being educated and organized

 

[dmagyar]

Cost breakdowns

Cost breakdowns

I quoted one job to a prospective client, he asked for a breakdown, then another and so on. Then he wanted me to back out the largest piece of equipment and he would supply it but still wanted me to handle it, receive it, install it.

I thought it was going somewhere but I ended up wasting my time for someone that didn't have a clue and was just trying to remove any bit of profit out of the job.

Get a couple of bids from contractors you have some experience with, pick one.

 

[cowboyjwc]

You also have to take into consideration that while a two man shop may be cheaper on the labor end, he may not be getting the same price breaks on material as a larger shop might.

So like you were asked earlier if A is $100 labor and $200 material and B is $200 labor and $100 material, who do you go with and why?

Both shops may still have the same profit margine, so breaking down the bid isn't really going to tell you anything.

 

[Besoeker]

I sometimes do.
For a simple bid I'd usually have the following sections:
Section 1. Scope of Supply
Section 2. Exclusions
Section 3. Comments
Section 4. Price schedules
Section 5. Terms and Conditions

Sometimes I give a price breakdown but, when I do, I say it is for information only and the prices given are valid only for the whole scope of supply.
So, they can compare our pricing with others but they can't cherry pick the bits that suit them best.

 

[mull982]

Bottom line is at BEST you get what you pay for.. If you pay for the high quality you have a degree of quality and assurance that the job will be done at a high quality . If you cut corners you have noone to blame but yourself for irritation factor.

I agree with your commnent on quality here. However on any project large or small the 3 key aspects of a project are Cost, Quality, and Schedule. So although we may be looking at quality in one regard here there are still these two other factors to balance.

 

[LarryFine]

Sometimes I give a price breakdown but, when I do, I say it is for information only and the prices given are valid only for the whole scope of supply.
So, they can compare our pricing with others but they can't cherry pick the bits that suit them best.

Agreed. Usually, if they insist, I'll do a breakdown that totals substantially more than my final price, which I call a whole-job discount. If they want only parts of it done, the higher prices apply, and the prices are already documented.

I also state that I price work as assemblies which include materials and labor, and not as a materials sub-total and a labor sub-total. That helps avoid the "what if I supply the materials" question . . . sometimes. If they insist, see Rule #1.

If I decide to shop for better material prices once I get the contract, I want to be the one who benefits from the time and effort, since that time isn't paid for by the customer. Not directly, anyway. It's certainly not in the breakdown.

 

[satcom]

Agreed. Usually, if they insist, I'll do a breakdown that totals substantially more than my final price, which I call a whole-job discount. If they want only parts of it done, the higher prices apply, and the prices are already documented.

I also state that I price work as assemblies which include materials and labor, and not as a materials sub-total and a labor sub-total. That helps avoid the "what if I supply the materials" question . . . sometimes. If they insist, see Rule #1.

If I decide to shop for better material prices once I get the contract, I want to be the one who benefits from the time and effort, since that time isn't paid for by the customer. Not directly, anyway. It's certainly not in the breakdown.

I agree if you have to purchase the material, there is a cost to provide that service.

 

[Jerry KES]

Do you show your consumers the exact cost of the widgets that you produce in your line of work? If I like your widgets and it does exactly what you say it will do, I really dont care what your costs of goods sold are and what the breakdown is.

 

[Besoeker]

If I decide to shop for better material prices once I get the contract, I want to be the one who benefits from the time and effort, since that time isn't paid for by the customer. Not directly, anyway. It's certainly not in the breakdown.

Yes, we shop around also or try to negotiate better discounts with our suppliers.
Mrs B is our buyer and her Southern Belle accent works a charm over here.
:grin:

 

[mtfallsmikey]

Go to Wal-Mart sometime, and ask for a price breakdown for a head of lettuce, or a Barbie doll.....

That's what I used to tell 'em when asked, and, there also is a $XX fee for re-itemizing an invoice/quotation. In my present life on "the other side", I look at the bottom line...The property owner prefers we hire union electrical contractors.

 

[fondini]

I work in an industrial plant where I'm constantly requesting quotes from outside electrical contractors to perform electrcial installation/service/upgrades etc.... Typically these quotes are submitted as a lump sum cost including both the labor, material cost and everything rolled into one price.

Is it typical, or would it be out of the norm to request a labor, and material cost breakdown on these quotes? If not to specifically but rather to see the total amount of man hr budgeted as well as a total material cost including whatever the markup is? This way when comparing quotes you can compare like aspects of the quote to see who is trying to get away with quoting less hrs to take shortcuts etc...

Just wanted to hear others thoughts.

Sounds like your day in the plant isnt very demanding,if you know what end result you are looking for then why are you concerned with the breakdown? If you have that much time it would be better spent checking referances instead of trying to re-bid your bids. just saying...