Piece Rates

[SoCalElectricalContractor]

I am an electrical contractor in So Cal and in light of the recent downturn of the housing economy, I have cut my piece prices. We pay about $.23/ft2 for rough and about $.12 for finish. Am i losing job after job because those are too high or are all of my competitors just going to be out of business in the near future? We are one of the largest Electrical subs in So Cal and I can't seem to get a single family job in the last 6 mos. Condos are doing ok howeve. Let me know if I am underpaying or overpaying. Our overhead is already pretty low too so it isn't that either.

 

[peter d]

Your prices make me want to puke. And the fact that you're losing work even with prices like that makes me want to puke even more.

Isn't California one of the most expensive places to live and run a business in the nation? Last I heard you have among the highest workmen's comp rates to deal with, among other things. You may be right...your competition might not be around for much longer.

 

[acwservices]

I am an electrical contractor in So Cal and in light of the recent downturn of the housing economy, I have cut my piece prices. We pay about $.23/ft2 for rough and about $.12 for finish. Am i losing job after job because those are too high or are all of my competitors just going to be out of business in the near future? We are one of the largest Electrical subs in So Cal and I can't seem to get a single family job in the last 6 mos. Condos are doing ok howeve. Let me know if I am underpaying or overpaying. Our overhead is already pretty low too so it isn't that either.

If I understand correctly, you are charging 23 cent per sf to rough, and 12 cent per sf for trim out? Please tell me I have misread your quote.

 

[ceknight]

.....We pay about $.23/ft2 for rough and about $.12 for finish......Let me know if I am underpaying or overpaying. Our overhead is already pretty low too so it isn't that either.

I'm a bit confused. You're paying people to wire their houses, and they still aren't hiring you?

But seriously -- are you saying that .35/sf is what you're paying your helpers, or is that what you're charging for the work? Either way it's pretty dreadful, but if the latter it's really dreadful. You'd be better off at McDonald's.

 

[A/A Fuel GTX]

What would your total bid ( labor and material) be on a 4500 sq ft house?

 

[peter d]

But seriously -- are you saying that .35/sf is what you're paying your helpers,

I'm reading it as that's what he pays for a "pieceworker" to rough and trim a house.

 

[crossman]

I'm reading it as that's what he pays for a "pieceworker" to rough and trim a house.

That's got to be what it is. $700 for wiring a 2000 square foot home would be ridiculous.

 

[SoCalElectricalContractor]

Prices

Prices

We generally get around $2 a sq ft to work. And if you can't make money doing that than you aren't built for that market. I constantly have piece workers that make $1200 a week so it isn't like they are that low. I pay piece workers .35 a sq ft to work on the house. For those of you who even thought that you might be able to do work for .35 a sq ft are crazy. You make me think that you have never even seen a bid before.

 

[SoCalElectricalContractor]

Our total bid on a 4500 sq. ft. tract house would be around 7K.

 

[iwire]

I constantly have piece workers that make $1200 a week

Is that in 40 hours?

Assuming its 40 hour I would be getting $30 per hour with no bennies?

Sounds great. :wink:

 

[SoCalElectricalContractor]

Is that in 40 hours?

Assuming its 40 hour I would be getting $30 per hour with no bennies?

Sounds great. :wink:

That is probably more for like 45 hours.

 

[SoCalElectricalContractor]

I don't know who actually bids per square foot so I am a little amazed at the confusion surrounding the initial post. If you thought that was even possible that is a little scary to me. My company has been in business for 15 years and when I have talked about piece prices in the past I have never had anyone ask me if those were contract numbers or labor numbers.

 

[peter d]

I don't know who actually bids per square foot so I am a little amazed at the confusion surrounding the initial post. If you thought that was even possible that is a little scary to me.

I can't speak for others, but my reaction was simply to the fact that you are having such a hard time competing in your market when you are already experts at it. New residential work is tight enough to begin with, so for someone to come along behind you and squeeze the numbers even further is truly amazing to me.

 

[ceb58]

Our total bid on a 4500 sq. ft. tract house would be around 7K.

If you are getting $7000.00 to do a 4500sqft house I want you here with me. I will sit back and pocket 7k to 8k and never leave the a/c.:grin:

 

[crossman]

I don't know who actually bids per square foot so I am a little amazed at the confusion surrounding the initial post.

You don't bid per square foot but you pay your workers per square foot? Surely the square foot figure must play a part in your bid then, at least at some subconscious level?

 

[growler]

Let me know if I am underpaying or overpaying.

Is your labor force legal or illegal? This a legitimate question, no offense ment to anyone.

This will let us know if someone else is cutting your throat or if you have created your own problems.

 

[CopperTone]

sounds like "south of the border" labor to me.

I'd rather stay in bed for those prices

 

[SoCalElectricalContractor]

Is your labor force legal or illegal? This a legitimate question, no offense ment to anyone.

This will let us know if someone else is cutting your throat or if you have created your own problems.

We have no illegals. I do business in Southern California however and let's face it, they exist. That isn't too much of the issue however.

 

[SoCalElectricalContractor]

If you are getting $7000.00 to do a 4500sqft house I want you here with me. I will sit back and pocket 7k to 8k and never leave the a/c.:grin:

That isn't for a custom hosue. A tract house. You can't compare the 2.

 

[growler]

Our total bid on a 4500 sq. ft. tract house would be around 7K.

There may be some confusion here. When you say 4500 sq. ft. tract are you talking about total space or finished living space?

I have noticed that some contractors count the unfinished basement which does not really get much electrical. This normally means only about 3K+ ft. of living space. It still sucks but it's not quite as bad as it sounds.

And just who is providing materials for this job?