Large Houses

[pierre]

There are a lot of new houses being built, and some of these houses are hugh (25,000 sq ft).
We are seeing houses in our area average 7,000 to 8,000 sq ft.
One thing I have noticed with these larger houses is the 'wasted' time when they are being built. So not too long ago in pricing these houses, I started adding $1 per sq ft for wasted time to these projects. Remember these houses can take many months to be completed and with the wasted time is money. Now in an 8000 sq ft home, I charge $8000 for wasted time, and I do not freak out anymore when time is wasted. I have not lost one contract, and I have passed this on to other contractors who have also started to do this.
BTW, in these larger houses we are getting $65/point for NM cable. Don't forget the additional cost for firestopping, especially for ceilings greater than 8 feet in height (ouch!!).

I am not sure why, but some seem to complain about the cost of AFCI breakers, etc.. why?
The cost is passed on to the customer, and the percentage of markup is higher.
I do not balk at pricing, have you been to a doctor lately? How about filling your truck(s) with gas? How about your insurance? Etc....

Pierre

 

[sjaniga]

Re: Large Houses

Pierre,

I'm with you 100% on this one.

Out of all the contractors we wire houses for only one is on the ball with scheduling the subs and for him we do not add anything for "wasted time".

Our other generals all get an adder for the "hay, were ready for you" call, (which they never are, and have to make many trips to do something that should have only taken one trip), and the sluggish timelines, heck we have actually waited a full year on some of these between the rough and trim. For this we now bill for 80% after the rough.

For the material costs, I'm not sure what all the griping is either. The more $$$ we can sell, the more $$$ we make.

Scott

 

[pcoleman]

Re: Large Houses

Pierre, Scott, I agree with you, large houses tend to be "custom". A good deal of time is spent negotiating details that are not discussed in "normal" sized homes. One of the key issues is time spent completing various phases of the project. This can create financing issues. In response to this concern, I have set up two week billing cycles for large home projects. I'm doing a project now that will require large amount of materials and staffing for 8 months straight.

The project mentioned above is huge relative to homes. Final electrical installation costs are going to exceed one million $. My company usually does commercial, institutional, industrial and public work. The reason we got involved with this particular project is the technology involved and our ability to manage and staff the project.

No one should consider a large home at costs one would expect in a normal sized home. An example of this is a hood fan we recently installed in an upscale home kitchen. It took a sheet metal mechanic and an electrician over ten hours to do it. We had to sub out the sheet metal work. Try that at $65 a point!

 

[jro]

Re: Large Houses

Pierre can you please explain $65 a point romex.

 

[goldstar]

Re: Large Houses

pierre,

Can I come and work in your area ???

Most of the builders here in my area won't allow you to get $ 65/point to wire a house. The competition is tough. One contractor in my area does heating and A/C, plumbing and electrical. When he bids the job, if the GC gives him all 3 contracts he'll give him an additionad 10% off on the job. As I mentioned in another post you have to go into this at a bare minimum and make the bulk of your $$$ on extras.

You must have a guardian angel for a GC.

 

[pierre]

Re: Large Houses

In 1990 when I went into business, I started with a very slick speaking GC who would take my prices and do very well. I was at that time getting $50 per point and $2000 for a standard 200 amp service. If I cannot get my price, I will not entertain bidding. I have developed a 'certain' clientele that wants my type of service. I can afford to listen and spend time with the customer and other guys in my area do not believe me. There are some here who only get $20 per point and I say that is their own fault.
I had a customer who paid an engineer $5500 for a set of drawings to rewire a tennis club outdoor lighting. I tossed those drawings, charged the same and worked off of my drawings. The club is now not only efficient, but any other electrician can come in behind me and figure it out in a snap.
If the market bears it, I try to charge it.
Try raising your prices, even a little and see how much it helps. I pay for my education with the extra $. I even had one customer tell me I did not charge enough

Pierre

 

[goldstar]

Re: Large Houses

Pierre,

I guess you hit the nail on the head. If the market will bear it - charge it. The Yankees still pack the stadium even though their ticket prices have soared. But, with a payroll of $180 million, paying $50.00 a (cheap) seat and $7.00 a beer, us common folk don't get to take our families out to the ball games too often. If you picked up the Yankees and dropped them off in say Minnesota you would have to drop $150 million off the payroll.

The going rates in New York City (5 boroughs) and similar big cities are way out of proportion when compared to suburban areas. Your situation down in Staten Island is a good one for you and I'm glad you're making the kind of $$$ you want to but it's not the norm for the rest of the country. By the way, I stopped working in Manhattan in 1985 (dating myself) and the going rate for a union electrician was about $90.00/hr. Any idea what it's up to now ?

Regards,
Phil

 

[pierre]

Re: Large Houses

Phil

I believe the per hour rate for an A mechanic in NYC is around $137.

Pierre