Residential New Construction Unit Pricing

[Coleflo]

I am sure something similar has been covered here before. Myself and a couple of others recently started a small business. We have mainly been doing service work and are about to start doing residential new construction. The estimating process has fallen on me. I have a general idea of where we need to be when pricing by the sq ft. The main builder we plan to do work for is one of the big builders that is all across the country. They require a Sq ft price that includes most of the bare minimum stuff. After that they require unit pricing on serval different items ranging from the service, to a tv drop, to bath fans, to a fireplace fan blower switch. I am new to estimating and would like some input on how you would calculate your pricing. Thanks for your input

 

[AC\DC]

Don’t price by square foot. If they want it just find someone else.

 

[LarryFine]

Absolutely agree. There are too few constants to do so.

 

[Coleflo]

I agree sq ft pricing is not the way to go. How would you go about pricing using the sq ft + unit method I mentioned above?

 

[ptonsparky]

I agree sq ft pricing is not the way to go. How would you go about pricing using the sq ft + unit method I mentioned above?

Refer to post 2.

 

[ptonsparky]

The ONLY reason you will get your foot in the door for a builder like that is if you are substantially lower than their current EC. Not particularly the best way to begin business.

 

[brantmacga]

I agree sq ft pricing is not the way to go. How would you go about pricing using the sq ft + unit method I mentioned above?

I'm an hour away from you. Is this for DRH? If so, their plans are really the same thing repeated just in different layouts, and everyone working for them here is using the sq/ft pricing method. The last I heard it was in the $4.50-ish range base bid, but whatever price you give them, they're going to try and talk you down on it and say everyone else is lower, FYI. From what I'm told, they really keep customer options to a minimum so there is very little custom work to be done other than all of the extra lighting fixtures they include in the kitchen/living/master areas. I know two EC's working for DRH and they're paying installers per-piece, and profit is <$1k per house.

 

[brantmacga]

The ONLY reason you will get your foot in the door for a builder like that is if you are substantially lower than their current EC. Not particularly the best way to begin business.

I'm in the same area as OP, and if it's who I think it is, they're not necessarily looking for lower price, just more EC's to keep up with demand.

 

[ptonsparky]

<$1000 per house?
I would think service work would be somewhat better.
I rarely did new housing and never on that scale.

 

[LarryFine]

. . . profit is <$1k per house.

Ridiculous!

 

[ptonsparky]

I guess if you were doing 52 a year, it would be nice.

 

[Coleflo]

I'm an hour away from you. Is this for DRH? If so, their plans are really the same thing repeated just in different layouts, and everyone working for them here is using the sq/ft pricing method. The last I heard it was in the $4.50-ish range base bid, but whatever price you give them, they're going to try and talk you down on it and say everyone else is lower, FYI. From what I'm told, they really keep customer options to a minimum so there is very little custom work to be done other than all of the extra lighting fixtures they include in the kitchen/living/master areas. I know two EC's working for DRH and they're paying installers per-piece, and profit is QUOTE]




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It’s not DRH. I should have clarified a little better, the sq ft price on the bid sheet provided only covers the panel, lights, receptacles, door bell chime, and 120v small appliance circuits. Everything else from the service, to all the 240v circuits, to bath fans, to smokes is an additional unit price.

 

[brantmacga]

I guess if you were doing 52 a year, it would be nice.

my neighbor is doing about 250-300 year I think.

 

[brantmacga]

It’s not DRH. I should have clarified a little better, the sq ft price on the bid sheet provided only covers the panel, lights, receptacles, door bell chime, and 120v small appliance circuits. Everything else from the service, to all the 240v circuits, to bath fans, to smokes is an additional unit price.

That sounds fair enough to me. I wouldn't have an issue quoting something like that on tract homes per sq/ft.

 

[ptonsparky]

my neighbor is doing about 250-300 year I think.

And I keep hearing that there is not enough housing, it is too expensive, no one can afford the interest rates etc, etc, etc.

 

[LarryFine]

my neighbor is doing about 250-300 year I think.

If a man and a half can build a house and a half in a day and a half . . .