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I'm not doing a bid with one particular client because it's a complicated job and things change almost daily so I'm just invoicing them once a week for labor and materials. I'm just wondering if anyone else does this and do you give them your hourly rate, your foreman's, your laborers'? Or do you just bill them for the total for the week? I ask because I'm about to give my foreman a raise and will have to start charging a bit more to cover it. Not sure how this is generally done. Thanks.
 

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if you are working T&M your billing should include who the individual is, how many hours you are billing for & their rate you are charging.
 

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Yes, I have a rate for my carpenters and a rate for my apprentices. As soon as they can be left on a job alone they are billed as carpenters.

I always raise my rates when someone gets a raise. I would never change the agreed on rate in the middle of a job. There are jobs everyone gets billed as a carpenter because either the customer or the job is a pita.
 

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I'm not doing a bid with one particular client because it's a complicated job and things change almost daily so I'm just invoicing them once a week for labor and materials. I'm just wondering if anyone else does this and do you give them your hourly rate, your foreman's, your laborers'? Or do you just bill them for the total for the week? I ask because I'm about to give my foreman a raise and will have to start charging a bit more to cover it. Not sure how this is generally done. Thanks.
If you're already committed contractually to a rate for a particular job, unless you have language in the contract that allows for it, you're not going to be able to change it mid-stream... how would you feel if a sub did that to you? It has a cascading effect...

It's one of the things 3-6 months of Capital Reserves and Emergency Fund address... to avoid issues like this, you raising your foreman's raise should be done only if you've already put aside a minimum of a month's coverage so you can absorb any transition seamlessly...

It's not "let me give you a raise" and then find the money, it's be prepared to be able to offer the money because you have it to begin with...
 

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I charge a flat rate regardless of who is on the job. Foreman to apprentice rate is the same. But make sure you allow enough to cover your most expensive guy and some percentage for overhead.



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If cost plus, I charge 3 set rates for superintendents, lead tradesmen and tradesmen. Doesnt change man to man.

Every resource, Porta party, subs, labor, dumpster, materials, whatever it's marked up 20%. Including in house labor. Some people do not do that but that is the way we work. It is important to sit down with your client and go over the contract and payment terms prior to signing.

I prefer stipulated sum (fixed cost) for the most part. Only clients of significant means and discerning tastes that want to make a lot of changes and not make decisions up front, as well as very high end custom work are qualified for cost plus with our model. It's a 2 million dollar house I'm not going to bid it and give them a change order every 5 minutes. They will make changes all the time. If it is a $475,000 house I am going stipulated sum

Commercial always stipulated sum

We have a number of clients that are wealthy and these are not their primary residences. They are constantly updating and making changes. Most of them we don't even give a estimate to, they work with our selections manager to decide what they want, we design it and knock it out.

Anything from an outdoor shower, a bathroom update, a new boat dock, windows, whatever. Kitchen updates, outdoor kitchen, new deck. Always something

When we had the big flood we did not take on outside work from the flood, but we did do some remodel work for existing customers. 7 of them we never estimated anything, we tore everything out and kept it from mildew and they made decisions remotely on selections. One of them we designed and remodeled the master bath and turned it into a really beautiful suite, we never got a check up front, about half we billed once during the process, the others all at the end. It was a 45 day turnaround for that work and we billed it as we finished. Those kind of relationships are 100% cost plus. They are great for keeping plenty of fill in work in the books, which is important if your a builder with a crew on payroll and not all subs like us

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Only when bidding commercial jobs. They ask for it in case of an extra that requires time and material.


Mike.
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