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Yeah mark up each item. I do this for HO's just to help them with how they're spending their money. I'm sure the smarter ones know its costing them more to do it that way. It doesn't bother me because I make more $ this way and my customers trust me more for it. That just greases the rails for future work.;)
 

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Discussion Starter · #4 ·
I wouldn't beak it down to far.

demo=
framing=
etc. etc.

markup each item,
I normally never break anything down. One example of the bid invite includes:

Repair of fire damaged siding.
Replace kitchen counters and cabs.
Drywall repair and paint prep.
Paint interior surfaces.
Install plates, secure j boxes, and other electrical defects.
Install smokes.


They want each component priced. I just curious how to break OH down or just use a fixed % of overhead based on the award $... Just incase I only get part of the work.
 

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QUICK & SIMPLE


TOTAL MATERIAL & LABOR FOR

Repair of fire damaged siding. = $ 25K
Replace kitchen counters and cabs. = $ 25K
Drywall repair and paint prep. = $ 25K
Paint interior surfaces. = $ 25K
Install plates, secure j boxes, and other electrical defects. = $ 25K
Install smokes. = $ 25K
 

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I always do a break down for insurance work. My mark up is already in the breakdown. I only break it down into labor, and materials. I try to be specific about the labor then show a total labor price, and then I do the same with the materials. So far after about 6 years doing it this way, I have always gotten my price for everything. I think it just makes the adjusters job easier.
 

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Probably could end up with more in total costs if you show everything. Screw on 10 switch plate covers -$80, spray 45 studs with some sealer whatever its called.

If you really elaborate and put a price on every inch of the job you might find your bid is 15% more. Its ins. work afterall. Everything has to be accounted for.
 

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Wait til you come across something that wasn't compensated for by the insurance company. Get approval first then document every single thing and every minute. Including the time it takes to document and breakdown.
 

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Break it down

The gc is asking you to do what he has to do to get the job when it is insurance work.
If you want insurance work, you have to break it down. Bid exactly what's specified, nothing more. Even stuff that's completely obvious and foreseeable doesn't go in the bid if it's not asked for; when you do the work it will be extra, and you will get paid extra.

I hate working that way and don't bid for insurance work any more, but that's the game.
 

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I got a call to bid some insurance work through a local GC. They request itemized bids for different elements of the work...rehabbing resodential property.

I normally give totals only. When I price task, should I break down my overhead into each task, or keep it as a individual line item based on the total bid?
Before answering your question, here are some items to consider, if you have never worked with this GC:

1) What type of loss was this....water damage, fire, hail, storm?
2) Do you know if the GC already has a scope of work from his customer and or the carrier?
3) Is he shopping prices to get the lowest bid or will he be using your quotes to prepare his own estimate to submit?
4) Without knowing specifics of the job, here are some line items that the insurance company scope of work would reflect:

---demo drywall by sf
---repair drywall by sf.....charges would be sf if large amount of drywall or flat price/minimum if small sf amount.
---remove flooring
---repair flooring
---remove baseboards
---repair baseboards
---paint baseboards
---detach or remove doors
---reset or replace doors
---paint door jambs
---paint doors per side
---detach light fixture or whatever item may be

These are just a few of many line items that could be in a house. Whatever can be touched in a house can be billed......can explain more if needed.

Without knowing more specifics, I would " keep it as a individual line item based on the total bid?", without P&O showing at the end of your estimate. As a rule, insurance carriers will tell you that they only pay 10/10 for P&O. Yet, in reality, additional profit is built into each line item.
 
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