COST PLUS Vs. FIXED PRICE

woodmagman

Looking at smaller jobs like bathroom renovations and kitchen remodels, even though the total cost is quit high what do most contractors do on an individual basis. For GC’s how do your subs typically charge you

silvertree

If I understand the question, Electric- Panasonic fan, 20 amp circuit and outlet with GFI, light and switch $1000. Plumbing- Rough in, supplies and install fixtures $2500. Heating guy to vent fan $400. Sheetrock, tape sand $1000. I do the little bit of insulating, trim, tile and flooring. Usually. I end up around $4000 to $7000 for subs plus demo and fixtures. Average bath around here if demoed is $12000 to $15000. And you know we end up doing $6000 baths (rarely) on up to $30,000 and more. I sold one recently that I start in February. $35000, and it includes demo and move into a closet to enlarge room, redo closet, granite top over Bertch vanity, 5'6" tub with the butt bubble system. Tile floor ect. The plumber varies a lot depending on do if move any fixtures or not.

woodmagman

Sorry, No it is a poll on how you would charge? Check out the poll at the top..

Stiletto

what about contractors that work at a fixed rate, and on a cost plus basis?

woodmagman

That is the definition of cost plus!
35$ per hour x 2 hours = 70$ Cost plus
70$ to do the job=70$ Fixed cost
Check out the poll

silvertree

Oops, didn't see that----Fixed rate always.

MinConst

I do both. I would rather do cost plus but some customers are not comfortable with it.

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Stiletto

I though the definition of cost plus was
$35/mhr x2 + $12 materials plus 10% = $90.20
fixed cost is I will do the job for $100
either way my costs are covered it just seems that some customers are more comfortable with knowing what the bill is going to be even if they end up spending 10% more,
I do work both ways and there was not that option on the poll.

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woodmagman

I am not sure about the 10% if that is profit and you think a HO is going to pay it then try....You would be better off building the profit into the hourly rate . And if it take you an hour to pick up the $12 worth of material you need to charge for that aswell

Stiletto

why wouldn't they pay it? it would be a cost plus agreement


yes, and I hope you would too

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threaderman

I also provide customers with a choice if they ask.T&M ,80.00 hour plus parts.If they want a fixed price it is based on 115.00 an hour with parts and permits incd. in price.

woodmagman

Milk 1.82 plus profit plus tax
New gloves 24.62 plus profit plus tax

Never seen that done, before good luck with the process.....

Milk 2.00 plus tax
New gloves 27.08 plus tax

Done alot of buisness like that....

Stiletto

then you prefer fixed price,

why would you ask about cost plus if you are uncomfortable billing that way?

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Stiletto

I re read this and the $35x2hr in my mind is a time and material job, and that would have the profit figured in so more like $41/mhr + materials w/o the HO privy to the books. Cost , ($35/mhr + material) plus 10% and the HO is privy to all reciepts for their job

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so a baby seal walks into a club ....