Contractor Talk - Professional Construction and Remodeling Forum banner

1 - 9 of 9 Posts

·
Registered
Joined
·
43 Posts
Discussion Starter #1
How do you bill for your time when you are only supervising? I used to charge $80/hr for myself and $30/hr for each employee (when I was working alongside them), but now I’ve got more people I’m managing so I’m running around and don’t do any labor myself. Not sure whether I should change my rate.

I normally bid a lump sum on a job but for this particular client has us doing lots of little odd things right now, so have to do hourly.

I'm in Oakland, California
 

·
Registered
Joined
·
3,069 Posts
How can you make money only billing employee's out at 30 a hour ? .
As for your labor rate you need to figure fixed costs O & P and your other costs, tool rental, permits and such along with a paycheck for your self.
 

·
Registered
Joined
·
11,227 Posts
Yeah, 30 an hour is a joke. It wouldn't be worth my time to put someone on a job for that amount.

How much do you make on them, like 3 bucks an hour after all the burdens are paid for?

I know that prices are different everywhere, but there are few places, and California isn't one of them, where 30 an hour might be reasonable.

Sent from my SM-N975U using Tapatalk
 

·
Registered
Joined
·
43 Posts
Discussion Starter #4
Yeah, 30 an hour is a joke. It wouldn't be worth my time to put someone on a job for that amount.

How much do you make on them, like 3 bucks an hour after all the burdens are paid for?

I know that prices are different everywhere, but there are few places, and California isn't one of them, where 30 an hour might be reasonable.

Sent from my SM-N975U using Tapatalk
So what's a reasonable rate? I don't know what my competitors are charging.
 

·
Design/Build
Joined
·
1,123 Posts
So what's a reasonable rate? I don't know what my competitors are charging.
It's irrelevant what your competitors are charging. You have to figure out what your fully burdened labor costs are and then add your overhead and a reasonable profit. You may want to ask your accountant for help in figuring this out.

I've heard of labor rates from $45 to $125 per man hour being thrown around my area. I think $45 is too low and that it should be more like $75 and up.
 

·
Registered
Joined
·
43 Posts
Discussion Starter #6
It's irrelevant what your competitors are charging. You have to figure out what your fully burdened labor costs are and then add your overhead and a reasonable profit. You may want to ask your accountant for help in figuring this out.

I've heard of labor rates from $45 to $125 per man hour being thrown around my area. I think $45 is too low and that it should be more like $75 and up.
Thanks. So what do you charge for yourself if you are onsite and just supervising?
 

·
Design/Build
Joined
·
1,123 Posts
Thanks. So what do you charge for yourself if you are onsite and just supervising?
My salary as the owner of the company is already included in my overhead since I do not work on any particular project full time and simply stop by from time to time to check in, answer any questions and deal with any issues that may arise.

If I were you I would charge what it would cost you to hire a project manager to be there. You also have to look at what the market will bear for the type of project you are doing. Maybe try say $75 per man hour for the crew and $95 for site supervision or $85 per man hour for the crew and $125 for site supervision. A lot of variables so hard to say without knowing you and the type of projects you do, as well as the type of client you are dealing with. If people are accustomed to you charging $30 per man hour this may be a tough sell.
 

·
Registered
Joined
·
663 Posts
You should hire a good accountant to get your cost of doing business figured out so that you know how much you need to charge.
 
1 - 9 of 9 Posts
Top