Punch List Invoice, Pricing, Help, Etc

allsolutions

I'm not going to try and seem to dumb here, just bare with me. I just started doing punch work for a custom builder. I charge $45.00hr plus materials if any are needed, most of the time he supplies material being there custome homes. My concern is I like to be very fair and honest, and I do understand this is a business relationship. My problem is billing him for what seems not alot done. Here is my thing: I painted approx. 8'x8' locker/shelving system. It was already a flat dark brown. The homeowner wants it a gloss beige and them steelwool over it. It took 3.5 hrs to put the first coat of paint on the system, which was done today. Tomorrow I guess about 1.5 hrs for another coat. And then I have to let dry before steelwool can be ran over the unit. So thats approx. 5hrs for painting which would cost if charged the $45.00hr $225.00 Do you guys think thats a fair price to charge? And I being to high? to low? or is that about right. I'm doing everything from painting, to ceramic, to drywall repairs, and so on. Hanging new doors, and so forth. Can someone please lead me with this. I have only done residential handyman,home repairs and improvements and charged by the job. I just want everyone to be happy, I want and need the work and dont want to undercut myself or screw the builders either.

PipeGuy

$45*30hrs*50weeks=$67500=me in the wrong business. More power to you.

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Fortunately I keep my feathers numbered for...for just such an emergency. -Foghorn Leghorn

Grumpy

C'mon Pipe, that's revenue not profit... but I have to think you already know that and are setting this up for some kind of lesson.

I bill out at $75 an hour for repairs and odd work I don't know how to estimate. If the guy agreed to $45 an hour, which I think is more than fair, and you worked 5 hours without milking it, I think it's a fair invoice ammount. If this builder has any experience what so ever he will know that these little things always take the most time and hassell to complete.

Worst case scenario, submit your invoice and see what happens. Don't short change yourself, but don't over charge.

Just today we are doing a repair on some gutters and my repair guy asks if he should also clean the gutters because they are dirty. I will throw two additional lines on the invoice.
Cleaning of gutters and downspouts ... $150
Good Customer Credit... -$150

I like letting people know when I go above and beyond the call of duty. What I am suggesting is if maybe you feel like you are overcharging instead of subtracting hours, give him a credit for something. HOWEVER don't set a standard which will get you in trouble later down the road. I mean don't always be giving discounts, he will get used to it and come to expect them.

allsolutions

Grumpy, I like your post.I understand what your saying and I feel the same way. Still interested in seeing others.

Dusty

I do a lot of custom work, remodel, etc... And most of it is on a time and material basis. My rates are $45-$65/hour depending on may factors. I try to keep my overhead as low as possible, choose my customers and give them great work and most importantly communicate with them. I often work up an invoice and wonder if it is overpriced only to find that the customer is more than happy and gives me more work. I don't mind explaining mid way or at the end why it took as long as takes. It's often more involved than the average person thinks. I am honest with my time, my wage, and my work. If the price seems high, well it sometimes seems low too. If you have skills, good work ethic, and communicate it will shine through in time. And any builder/GC knows punch lists are a pain in the @&*. I have no problem telling a hourly guy that is not what I thought it would be, but in the end if he's a solid craftsman/worker, I'll use them again, pad my budget for them and let them know what amount I have in mind for set projects. Communication!

DaveH

You are not being unfair at all. We are in business to make money. What possible earnings could you generate if you were not there? Possibly even more...maybe less? The fact is if your contractor/homeowner...whomever... knows your rates and you are not dragging your feet when you are there... you then charge...Well you charge what you charge..Right? These type of things are the hardest to stomach for lots of people. I know you feel guilty but...Here's an example of a job I did last year...bigger scale but same principles.

I won a job to convert a clothing/retail space in a strip mall into a high tech school building. The contract was for $650,000. When I looked at the prints this was going to be a 20% profit job. When I arrived on site the GC informed me that all the exterior walls I was supposed to build were already there. I just needed to touch them up. I also instead of taking all the walls up to 24' -36' had to stop them just above the finished ceiling (14') These items plus more made the job into a 75% profit margin. I was loving it no doubt, but had this nagging in my mind about fairness. I offered some money back for the changes. The GC said "This happens with this school all the time". We tell the architect but she is good friends with the owner. They say what they have drawn is the job. However it comes out for us is fine...They wanted no money back! Somebody is paying for it though...Probably the students!

The moral..I made more than I thought was fair. I tried to do the right thing. In the end the truth was I could have been on another job instead of this one. I could have showed up and the job was worse than the plans showed (It happens) So I take the good with the bad as we all do. So you make good money on this one. Next week you might lose your a$$ on another one. Contracting is always somewhat of a gamble. All you can do is what you do and let the chips fall where they may. You are not being unfair...
Dave

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A buck a foot is not an estimate! It's a crap shoot!

allsolutions

Thanks guys, I feel alot better now, and will continue business as usual. This is a great forum and I have learned so much from this site. Thanks again!