Some advice on overall pricing please.

[lloyd1980]

Hi all.

its been a while since I posted on here , hi to all old and new.

im currently in new territory work wise and would like some advice from people in a similar boat or who have gone down the same route.

i was a self employed spark for a number of years, during the recession and as the work I had coming in dwindled, I was having to further afield to make any money I decided to diversify.

I moved into property development and for the last 3 years we have purchased property renovated and then sold.
we've done ok and this year we are branching into buy to lets. For the last 3 years I've built a team of trades whom we work with all the time who I trust, they have worked for me and the cost has come from the project budget.

We have created a Facebook page which is becoming quite popular showing the various projects we have done (before during and after pics) , off the back of this I am getting asked to price large jobs for customers, not just your standard rewire , but stud walls removing, new corridors built , bathroom re sighted, new skirts and doors. Skimming top to bottom , ceilings down etc, nothing I can't handle or haven't organised before but the main difference this time is that it's for a paying customer whom I will be invoicing.

this brings me to my point , which is what would be an acceptable mark up to place on the people I'm managing and coordinating ? I've experienced the banter on here before so i get the feeling someone will say (as much as you can get away with) but I'm just wondering if there is a going rate so many % for example , I'll be managing and coordinating about 4 trades plus myself for the rewire so would appreciate some feedback.

thank you all in advance.

lloyd

 

[Leesparkykent]

It's going to vary from person to person isn't it, only you know what your overheads are before you break Evan and how much you want to earn as the person coordinating the different trades etc IMO.

 

[trev]

Take how much you need to earn and add a bit. Then divide it by 48 (chargeable number of weeks)
Then pro rata it among the trades.
Then add their hourly rates.
That should give you something approaching an hourly charge out rate by trade. Divide it further if you have 3 joiners, 4 plumbers, 23 labourers etc etc

 

[johnsparks23]

33% on top of their day rate. to make any proper money, you need a few guys working, for you to make a decent income.

 

[lloyd1980]

Thanks for the replies . I'm taking the joiner and plumber round on thursday. I'm hoping I can get them on price work . The joiner normally likes a day rate and gives me a good day for his money . My plasterer tends to plod if not on price although quality is good. If I can get prices then it will give me a good idea if the customer insists on a fixed . If ok with estimates then it's no worries but don't want to tuck myself up . I'll make a few quid on the rewire but as its a large job and I'll be managing the whole thing then I don't just want to make a wage I want to make a good amount without going overboard . If it goes well they'll be giving me the kitchen too .

 

[ImpededLoop]

[h=2]"Some advice on overall pricing please."[/h]
Yep, bought a pair recently for £35.


Only kidding. I can't really help with pricing the rewire.

 

[lloyd1980]

Cheers Lol

 

[Welchyboy1]

Industry standard is 20% for sub-contract, and usually 80/100% for direct paye

how ever youve got to crunch the numbers and work out what makes it worth while

remember the buck stops with you and your gonna be the one to get all the problems and call backs on a sunday morning etc. to deal with so you have to take all that into account

 

[lloyd1980]

I've had all the estimates back from everyone so have put in an estimate , explained what it excludes , ie internal doors until they decide on type and finish and also cost of suite, shower tray tiles etc as they are sourcing this, I've allowed for contingencies and call outs and hassle if anything anyone does goes wrong for whatever reason, the plasterer has estimated a month for the plastering , he may want a months money but I'll be pushing him to finish faster than that !!
I've never drawn up an agreement before but feel in this case I'll be getting an agreement or contract drawn up, outlining my responsibilities and what I will deliver, I'll be including a deposit and weekly stage payments also. Thanks for the advice,

 

[R G]

Thats another point , the materials , remember if you supply any then you guarantee them , so I always add a markup of about 20% on top of them , as its you who has to specify them and source them as well

 

[atm84]

If you look at larger construction companies who sub let all the trades, they usually work on the basis of approx 2.5% mark up which is just basically a management fee.