Just pull a number out of a hat

[JES2727]

A customer from a couple of years ago sent me an e-mail the other day. They're moving into a new office space, just like the fit-out we did for them before except 8 miles north. " Scope of work to be shut down power to the cubicles and restart at the new location. We don't have drawings yet." Ok. So I tell them we'd be happy to bid the project for them and "let me know when you have the drawings so I can take a look and maybe visit the site." No, that won't do. "We need an estimate ASAP. Assume the site to be as per our current location."
It was a small project. About $15K. Of course the new project will cost exactly the same, because the scope of work is exactly the same, right? Mr. Patel (the customer) wouldn't mislead me, would he?

 

[VoltzElectric]

I would bit it out the same, and put the stipulation in there that anything above and beyond the "scope" of the current office will be added on as an hourly rate + materials.

 

[JES2727]

I don't think I'll handle it that way. I'll just give him a "ballpark" number, like $18K to $22K. There are too many unknowns. Is it new work? Am I to provide the light fixtures? What about the network wiring? How about the panel? Can it handle the added circuits?
It astonishes me that people really think we can bid work this way.

 

[augie47]

For so many people, estiamtes with that many unknowns, seem to remain carved in their mind. NO matter what to scope of the work turns out to be anything over the "estimate" is robbery.

 

[hillbilly1]

I worked for a company once where the President of the company would hold a roll of blueprints in one hand, and grab his crotch with the other and say $25,000! The estimators after taking it off would say he would hit it pretty close!

 

[480sparky]

For so many people, estiamtes with that many unknowns, seem to remain carved in their mind. NO matter what to scope of the work turns out to be anything over the "estimate" is robbery.

X2. Far too many people think the definition of an estimate is "An amount not to exceed, regardless of that you really want done".

If you say $20,000, and you send them a bill for $20,100, they'll likely brand you as a cheat.

 

[hurk27]

I would at least go look at the new location, and check the service capabilities. mark up for current cost of materials, then put in the contract what the price covers and any thing extra will be billed as T&M.

Get it signed!<<<<<<

just watch your back on this.

Patel/Singer is an assumed named when they come to America to invest Indian government money (not sure about this last part), some are great at paying, and some will fight you to the teeth.

Not saying anything bad about them, just had some who would not fulfill the contract and ran back to India when took to court. 100k lesson on a new hotel

 

[480sparky]

...........Patel/Singer is an assumed named when they come to America ........

Patel is a common surname in Western, Northern and central India, just like Smith or Jones in the US.

 

[celtic]

Here is the correct number: A lemon.

 

[LarryFine]

Patel is a common surname in Western, Northern and central India, just like Smith or Jones in the US.

It sounds like Ma Bell's husband.

 

[hurk27]

Patel is a common surname in Western, Northern and central India, just like Smith or Jones in the US.

Yea guess I was told wrong:roll:

and it was by one, go figure:roll:

 

[zappy]

Keep us updated...

Keep us updated...

I'm very curryious how it turns out.:grin:

 

[growler]

I would at least go look at the new location, and check the service capabilities. mark up for current cost of materials, then put in the contract what the price covers and any thing extra will be billed as T&M.

That's about the way I look at a job. Looking at the new tenant space and what's there is the most important thing. Sooner or later they will have to get a CO on the new office space ( before they can occupy) and it really doesn't matter how much money the customer wants to spend, when you look things over you get a pretty good idea of what they will need to spend.

Most companies move to a new location for one of two reasons. They need more space or they want better (cheaper) rental terms. They go out and find what appears to be a good lease agreement. The reason that it's such a good deal is that the place is trashed and will require a large up-front investment. All the customer sees is that they will pay half as much for rent and not the big up-front investment.

 

[nakulak]

all you have to do is turn in a qualified estimate, include quantities:

this estimate includes:

2000' 12/2 mc
200 connectors
30 2x4 light fixtures model # ....
50 duplex recept
20 switches
install 10 modular cubicles

etc etc

if the actual job varies wildly and you want to charge them more, you can just show them what the estimate included or didn't include, and charge accordingly. tell them the only other way you can do the job is T&M (if you are so inclined).


-just mshio