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I'm finishing up a larger roofing project and wanted to make sure that the pricing I'm giving aren't outrageous. I know it really depends on your business model, overhead, etc. But just amuse me please.

Garage: 8.26sq tear-off, 30year arch, replace 4 boards, Ice Guard (Iowa), Drip Edge = $1979.27

House: 27.01sq tear-off, 30year arch, replace 12 boards, 3 valleys (40 ft total), 102ft in ridge/t-hex, tear out of chimney and new flashing, 2 soil pipes, 62ft of roof/wall/step flashing = $7800

*The house was 35ft off the ground. Half the house was 45ft off the ground with no access, the neighbor said he would call the police if we stepped foot in his area (alley). The driveway with access was shared with neighbor (inconvienace). We added in the cost of renting a lift for $300.

Do you guys feel these numbers are pretty close? Thanks.
 

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Commercial Roofing
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Depending on your WC rate, I would say I could do that job for those prices and just about break even. Maybe a few percent net profit. Those prices are more fair for the customer than for the roofer, in my opinion.
 

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Aaron remember your comp rates are so high because you do hot work. Those of us who avoid hot work, enjoy a much much lower comp rate. That's why BUR is losing market share every year.

Jason, I'm not sure where you are at. You must remember everything varies from location to location. As far as wood goes, I never price it upfront. How do you know how much wood needs to be replaced?
 

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If you're just finishing up, your prices must not have been too outrageous, the HO accepted the bid. :)
 

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Commercial Roofing
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I disagree, Grumpy. In the Great state of Illinois, roofing has fallen into a in-voluntary workers compensation state. This means that they MUST take my business. This goes into the pool. All ROOFING contractors that go into the pool get the same rates. Shingle roofing is still roofing in the pool. Hot roofing is still roofing in the pool. We get our good low rates by experience modifiers. The longer you go with no claims, the greater the modifier, and the lower the rate.

Hot or no hot, it is all roofing. General liability is where we have the trouble finding coverage. Thank God we are not all commercial.
 

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Commercial Roofing
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PS BUR is losing market share every year in favor of less skilled, cheaper faster systems, which will not perform as well or as long as a properly installed BUR. BUR is still the strongest roof on the market
 

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Discussion Starter #7
Those are the rates I gave the HO. I replaced those boards. I gave them my estimate, minus the boards and a few other complications that arose. I was just double checking.

I ended up making my minimum on this project, which was kind of a bummer. The house ended up taking a lot of extra time and energy.

Also, I'm in Iowa.
 

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Grumpy and I are in the Chicago area...hes on the Northside, Im out South.
 

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your r.s. means manual is full of important sounding phrases like material handling and storage limitation and equipment usage curtailment.Using a few of these in your proposals helps the cheapasses understand why your price is what it is.Of course to you and me it means no room for the dumpster and no space in the garage. :cheesygri
 

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Grumpy,

Those that only do shingles at a roofing WC rate pay the same. Do your subs have roofing or construction WC insurance?
 

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AaronB. said:
Those that only do shingles at a roofing WC rate pay the same.
I have to disagree. When seeking insurance coverage about this time last year, all insurance companies asked if I was doing hot or torch. Some said they don't insure for hot or torch. Some said the rates go up for hot or torch.

I am basing my comment off what the agents told me when I was seeking insurance coverage. Rates go up for hot or torch.
 

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Jason,

Here is an example of my bid sheet,

Materials:

The cost of materials = $ 8,000.00
Sales tax (if any) CA is $7.5% $ 580.00
Delivery (if applicable) $ 250.00

Total cost of material to jobsite: $ 8,830.00


Labour:

Tear off,
75 hours @ $55.00 = $ 4,125.00
Roofing labour,
95 hours @ $55.00 = $ 5,225.00

Other charges:
Building permit: $ 300.00
Dump fee: $ 600.00

Total cost for above: $19,080.00

Overhead 12.5% $ 2,385.00
Profit 10% $ 1,908.00

Total: $23,373.00
Selling price: $23,525.00


This is merely an example of how I do it. My hourly rate is $55 an hour. If I'm paying a guy $20 an hour, my labour o/h withholding and such on the guy including w/c is about $25 which brings it to $45 total. I add another $10 per hour to cover any additional costs such as extended break periods, unknown beer runs, you know the story. If I have a $10 an hour flunky, the labour rate is the same regardless.

The overhead is where your GL and the rest of the operating costs is calculated. If I'm running several crews, then 12.5% is about right, but if I'm running only 2 crews, then I'm gonna bump that puppy up to at least 20%. The profit stays the same.

A few words of advice. The customer usually complains about the price and wants you to sharpen your pencil. Never, ever, lower your labor, overhead and profit. You might be able to skimp on a cheaper brand of materilas, but I wouldn't advise it. When people told me to sharpen my pencil, I usually found something I missed and came back with a higher price. Also, how you figure your bid is your business only. Some people want to know what kind of money you're gonna make. It's none of their business. The bottom line is the contract price, period. Unless of course, your doing your contracts on T&M. When I did T&M contracts, I always inflated the labour and reduced the o/h and profit. This practice makes it look like you're not gonna make tons of money, but you are. I've had people complain about money before they ever saw the price! Thats a red flag pal, avoid them. It's not worth it.

I always sold myself when I was high bidder. I'd drive the client around towne and point out all the slick looking roofing I performed, and then point out the lousy crap the competition was slopping on. Leaving sample boards on someones doorstep is an injustice to your fine work.

Hope this helps.

Best regards,

DE
 

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Commercial Roofing
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Grumpy are you talking WC or GL? You need torch coverages in your GL. I think you have the two mixed up. Nobody is writing roofers voluntarily in Illinois for WC.
 

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Good advice, DE...conducive to remaining in business for the long term and able to service your warranties (if ever need that is).
 
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