Price out of line?

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sfav8r

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San Francisco Bay Area
I am bidding the following job:

Install 6 recessed lights in living room. Switch these off of the existing switch that currently controls an outlet.

Run an additional new switch to control an outlet which currently is not switched.

Install two "wall wash" recessed lights and add an additional switch next to the switch mentioned above.

Install 6 recessed lights in family room to be switched from existing switch. Remove existing lighting outlet.

Install 4 recessed lights in Kitchen to be switched from existing switch. Remove existing lighting outlet.

As a VERY ROUGH number, I use $100 per light for recessed lights. There are a lot of things that affect this, but it's seems to be as good of a a guide as anything else. That would come to $1,600 on this job.

My actual bid was $2,200 because the attic is full of blow-in coated newspaper insulation, is very tight and someone has installed planking over some areas where the recessed lights need to go.

I'm curious what some of you would charge (the labor is really the only thing that I'm curious about) The H/O says they got an estimate for $500 plus materials. :eek: How can this be? There is no way that job is going to get done in one day. Just moving all that insulation around and finding the existing circuits is going to take a while, then how about running the switch legs down the walls and figuring out where the wire for the receptacle that needs to be switched are? It's not rocket science, but it takes time.

Am I over thinking this or is the bid about 70% too low?
 
Re: Price out of line?

I wouldn't change your price, except to raise it. With the labor involved in the adding and/or rewiring of receptacles, and that of dropping the switch loops, your price is more than fair.

As for the $500 quote, it may not be true, and it probably will not cover a safe and neat job. I would tell the customer that matching that price is impossible, and to please call if they come to their senses, I mean, if they change their mind.


By the way, you have 18 cans, not 16. :eek:

[ January 31, 2006, 04:38 PM: Message edited by: LarryFine ]
 
Re: Price out of line?

I can not imagine how anyone could supply and install 18 cans and 3 switches for $500.

Even as a side job with no overhead that seems real low.

What will just the material cost?
 
Re: Price out of line?

Interesting! I think it is a fair price as well. I am also of the opinion that either he is trying to get you to come down or has a non-licensed individual who put the other bid in.

I am fairly new at this but I?m getting an education awfully quick. I posted a question about bidding on a finish of a house that was already rough?d-in, around 2002. As usual I received really good advice from this forum. I figured out T&M $3,400 and added $600 for what I figured would be re-work, tracing wire and ensuring that the job would conform to code and done correctly. The GC got back to me and told me that he received a bid for the same services I put on mine, but in addition the other contractor would include 6 smoke detectors and bulbs and the trims for about 20 recessed lights and do it for $1,100 less. He also told me that he can get an EC to do a complete new house T&M for $2 a Sq Ft. I told him I couldn?t beat the other bid and thanked him for the opportunity. I don?t think I was too high and I checked with a contractor friend and he thought it was a fair bid also.
 
Re: Price out of line?

At $500 cash money for the labor I figure that would come out to around $20 maybe $25 an hr. I would ask who gave such a price, I see a hungry handy-man.
 
Re: Price out of line?

Wow -- the job you listed was almost identical to one I bid on November. My bid came to $2205.

You know what your materials cost, and you know what your labor rate is. Since this is old work, you have to factor in all the unforeseen snags you're going to run into and pad the bid accordingly. I learned my lesson on that the hard way.

From time to time I get people who hit me with lowball numbers they got elsewhere, and they ask if I could match them. I've never played that game. I give them my best price up front, and I don't negotiate. Sometimes the numbers are so low I don't see how anyone could do the work for that price.

I suspect the lowball bids are one of the following:
</font>
  • <font size="2" face="Verdana, Helvetica, sans-serif">Fictitious</font>
  • <font size="2" face="Verdana, Helvetica, sans-serif">From unlicensed hacks</font>
  • <font size="2" face="Verdana, Helvetica, sans-serif">From licensed corner-cutting contractors who operate on the "churn 'n' burn" philosophy</font>
<font size="2" face="Verdana, Helvetica, sans-serif">Do you really want to compete with them?
 
Re: Price out of line?

2760.00ish is what i came up with,,
if he can get some one to do it for 500.00,then let him...
if you get all your bids your to low.
 
Re: Price out of line?

It comes to about 2 days work for a good man.That's about $30 an hour.For an unlicensed man here in Florida that would not be bad.You will never match him with no overhead,workers comp,liability,etc.As always there will be a guy who comes in low because he figured wrong.I would just add this customer to the black ball list and forget it.
 
Re: Price out of line?

If you have attic access above all potential fixture it will save fishing through ceiling but I still wouldn't touch this for less than $130. per can plus extra for each switch.
 
Re: Price out of line?

"It comes to about 2 days work for a good man.That's about $30 an hour"


For any licensed ELECTRICAL CONTRACTOR, this would be an absurd number to even contemplate... I do not care which part of the country you work in.

Factoring in:
-license,permit costs
-insurance
-other overhead...fixed and nonfixed
-almost daily rise in material costs

-lets not forget medical...if you can even afford it ;)
 
Re: Price out of line?

My minimum price would be $2340.00 plus permit cost, if I were figuring it thin. FWIW. If customer wants other guy, let him have him.
 
Re: Price out of line?

Your price is more then fair! Sounds like he got a quote from the local handyman. No way would I touch this for $500, even with no over head as a side job.
 
Re: Price out of line?

Sounds like they got someone who doesnt realize what hes in for, after his first day he will realize how bad he screwed up his bid!
 
Re: Price out of line?

If they want a ligit company the labor here would be about $65 an hour plus the material.Any time you can get an electrician doing side work he will beat a company.I suspect if that bid is right that he is exactly that.
 
Re: Price out of line?

$500 for 2-3 days work? No way. Your price is very good I think. I came up with $2950.
 
Re: Price out of line?

The $500 guy might be one of those that bid low to get the job. but whene work starts the prise goes up every day. A frind of mine built a 1000 sq add on. bed and bath upstairs, small appartment down (with kit. bath washer and dryer bedroom and living room.) said he could do the whole thing for $40K.(no price lock, coast plus 10%) The GC had allowance for each part. under electrical it was $1100. I told him if I did the work for free I would still lose money on the material
 
Re: Price out of line?

If I didn't have attic access I'd charge $2800 for this job. With attic access, I'd have to figure out how much time it would save me and then discount the $2800 appropriately.

Frank
 
Re: Price out of line?

I'd say you were good to a little low on the price. If the HO just wants a cheap job, he better take the $500 plus parts. If you wanted to do charity work, you would be working for Habitat for Humanity.
 
Re: Price out of line?

I came up with $3,400, I would run a new circuit for the recess lighting, in years past, we use to run recess, off an existing circuit, until the calls for, i plugged my vacuuum in, amd my lights dimmed, when are you comming to fix the problem.

And if $3,400 sounds high, we have a crazy way of running our business, we add in a strange thing, called profit, and other crezy thing we do, is provide medical, and give a weeks paid vacation.
 
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