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Joined: Nov 2005
Posts: 507
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what % are you paying at your bank? I learned about this a few years back from a customer in the garment industry. He was paying around 0.75%
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Joined: Nov 2005
Posts: 141
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I've had about a half dozen or so, of these new house deals and I have taken the H.O. to MY bank for a credit check and had the H.O. use my bank for financing. It works for me and the bank likes it because I'm bringing them more business. I have worked a few deals with the banker to put some "seed" money up front to get any extra materials for the job that I don't normally have around the shop, if the H.O. has the proper line of credit. The bank also gives the H.O. a bit of a break on interest rates as well, so everyone wins a bit.
The best part is that I can rest easy when I know I won't be getting stiffed for the work because the banker has done all the background stuff on the client before the real work starts and I know the H.O. actually does have a valid credit rating.
As to your estimating of the job, that's a whole other issue. I have a very good supplier that wants to sell his stuff so he keeps me up to date on prices about once a week.
A 3,000 square foot house around here in Alberta will probably take about $3.50 to $4.00 per square foot for the material. I charge by the hour on these kinds of jobs, so you can work out an estimated time for your work. It helps a lot to have a helper for new stuff and NEVER do the rough-in until the lugans are done with plumbing and HVAC.
New house construction pricing takes a LOT of detailed work. I have even added up the price of cable staples into my work. Estimating is an artform to me and I ususally add a cushion for those ever present "unknowns" that always come up. I use 10% and it's never gone south on me yet. The only job that I took that went over estimate went over by 1.5%, which I agreed to eat because I won't back out on a contract price.
Hope that helps.
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Joined: Mar 2001
Posts: 2,056
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CheckPilot... "$3.50 to $4.00 per square foot for the material. I charge by the hour on these kinds of jobs"
I think it is less than $1.00 / sq. ft. for material. Around here, you can get about $1.50-$2.00 sq. ft. for large volume builders, and about $2.00-2.50 for small, custom builders, excluding options.
BTW,
I agree you can't bid by sq. ft. Unit pricing is the only way to go. Although, afterward you can calculate the sq. ft. costs
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Joined: Nov 2003
Posts: 40
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I politely explained to the homeowner that due to the price of materials I could not undertake a job of this size at this time, and I recommended my former employeer to him as the best custom home builder in the area. I will stick to my service work and forgo the big money building business.
Thanks for all the advice you guys have given me.
Festus
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Posts: 32
Joined: June 2004
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