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Discussion Starter · #1 ·
Well, first off let me say if this is not the right place for this thread feel free to move it.


My Father-in-law has an approx 24' x 24' garage with an unfinished storage area above. He had been toying with the idea of finishing it off. Even asked me about it and thought it would be something we'd explore when I was done renovating the house up north.
There is an AHU in that space right now, hydraunic system. The space is not heated. The coil froze and cracked. The plumber replaced it and my father-in-law was looking for ways to ensure that it wouldn't happen again. I guess he suggested getting a quote from his brother-in-law (whom he frequently works with and has done work there before) to finish the space.
His quote excluded mudding/tapeing, heating, electrical, insulating AHU closet, AHU closet door, painting cedar shakes- basically what his quote included was framing knee walls, adding a LVL beam, installing double wide window, insulating garage ceiling and room above it, installing 1/2" plywood over existing 1/2" plywood subfloor and hanging 1/2" rock up stairs.
Now I have priced this out with upgrades to the following:
-Flooring. Ripping out 1/2" plywood subfloor, adding nail on bridges to engineered floor joists. Replacing subfloor with 3/4" tongue and groove advantech.
-Upgrades to insulation. Plus add insul boards in closet to aid in sound attenuation.
-Sheetrock to garage ceiling, it will be 5/8"- nothing listed in quote for garage ceiling sheetrock.
-Upgrade double window to triple window.

With these upgrades the material to complete the job as he listed it will cost me $3,000.00
His bid price-$13,500
And his schedule was to complete in 3 weeks.
I told him I will do it for the same price and also include electrical, HVAC, Mudding/tapeing, painting (even the outside stuff, I will paint cedar shakes in basement before installing) install AHU closet door and insulation, add emergency drain pan and pipe to AHU, install nail on bridging and other upgrades I mentioned in upgraded material.

I may even install the knotty pine flooring, but I didn't tell him because that will be a surprise if I do do it. It depends on where the margin lands at that point. It will be a 25-50% profit margin by the time I am done.

I just don't understand how someone will price something enough to do the whole job and make a decent profit, but exclude everything down to the point that it would have cost him $2250-$2500. He would have made $11,000 minus what he paid help, and he works alone. He would have only had help there to install the LVL.

I will start this on Friday and will be done by next Friday.
 

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Discussion Starter · #6 ·
That must be some pos triple window, if all that crap will only cost you 3k?

I really don't think anyone involved has a clue at all.
Window was $1,000 of it. Brosco window. Supply house said sister company of Anderson and exactly the same, without the name. I'll take some pics.
 

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I'll do the whole thing for the cost of the materials and throw in a lunar powered satelite cleaning substation on the roof, just to be positive your father in law isn't getting ripped off.
 

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So if a job took you less time as expected. And you made $10,000 in a week profit.
Are you going refund some money back. I understand its family.
But don't be a angry if someone makes big profit on jobs. Were in business
To make money, not to just past time.
 

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The Duke
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Ridiculously Huge Profit Margin

I have never heard that before. To be honest i dont think that is even possible.

Now ridiculously low profit margin---thats bad!
I remodeled a home of a diamond jeweler once. You want to talk about profit margins!
 

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Discussion Starter · #17 ·
No need to be impressed it's just one room. The HVAC guy that looked at the job today said the AHU is big enough. One week shouldn't be a problem. I'll have two guys I had working on a project last winter and when they were light on work this summer. I pay $25 an hour, my buddy's company just keeping the guys busy. I budgeted for $1600, one of the guys owes me two days labor for some leftover windows I gave him. The sheetrocker will hang and tape for $680. All framing, subfloor, electrical and HVAC will be ready for rock by monday. Monday will be hang and tape first coat. Tuesday will be second and third coat with garage started to be hung while waiting for second coat to dry. Window and siding will be installed.Wednesday will be sanding in the morning and priming in the afternoon. Thursday will be first coat of paint and electrical devices. Garage will finish being hung. Friday will be flooring day if we do it and garage will be fire taped.
 

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Discussion Starter · #18 ·
So if a job took you less time as expected. And you made $10,000 in a week profit.
Are you going refund some money back. I understand its family.
But don't be a angry if someone makes big profit on jobs. Were in business
To make money, not to just past time.
I'm not angry if someone makes money. Everybody should make money at what they do. What I am angry about is people always taking advantage of my father in law because of his profession. I don't charge any more because someone is rich. One guy I had working for me straight out told me that when he had his own company he would charge more if he knew they were rich.
 

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Thom
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$25,000 and not a penny less, that's my final offer.
 

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Project Manager HFH..
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11,000 in his pocket after three weeks of work.Sounds fair to me.Maybe a little low.
Owner's salary,overhead and profit.
 
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