|Design Consultation||Construction Consultation|
|Drafting Services||Project Management Services|
|Construction Takeoffs & Budgets||Construction Small Business Consulting|
|Site Selection||Real Estate Services through Rankin Realty|
Issues in Bidding?
Unlike factory made widgets it’s hard to know an exact cost when dealing with remodels. Labor costs can vary greatly between tasks depending on the skill set of the contractor’s employees and tradesmen. Each remodel project has it’s own challenges and tend to be unique in design and the materials selected. Plan and specifications are sometime at a minimum and incomplete when dealing with the full capacity of the project. Because of this there is a high potential for risk on behalf of the contractor. Contractors will deal with this risk in a number of way. Many will simply underbid projects ignoring the risk until an occurrence happens which will then force them out of business. Some contractors will cover the risk through exorbitant change orders which often a cause strife between the two parties. While others will simply over bid the project to cover any potential risks that might occur. Very few contractors will actually take the time needed to cost out an entire project without first being compensated or guaranteed the job. Assume that the estimate you receive is worth what you paid. This is often why three bids can differ so dramatically. We encourage people to partner up with a contractor in the design phase to help clarify the scope of work and address issues that might arise.
Our Management Fee Approach?
Do you have time to manage your remodel projects? At Rankin Remodeling we like doing things a little different and operate on a reduced project management fee in conjunction with a small markup as a proportion to the initial budget. Our management fee is prorated so that you aren’t billed if work isn’t being performed. We work for you to get the best quality at a competitive price. The markup added is an effort to make the management fee scalable over any sized project while covering overhead cost. This might sound confusing at first, but we find that this business model benefits both the contractor and client while also reducing the need for tension between both parties. Prior to the start of the project, materials selections are made and a budget is established. Our management fee is typically $1,500/week with an additional 6% markup based on the budget established; although this might sound like a lot it’s still typically lower than the overhead & profit which most companies charge.
Most owner operated remodel companies charge somewhere between 15% to 35% for overhead and profit. Your larger companies who have sales staff trying to sell you on a first time home visit in hopes that they’ll earn a commission typically figure cost based on the following: 25% towards materials, 25% towards labor, 25% towards overhead, and 25% towards profit. Yes, 50% towards overhead and profit which goes to cover the companies large marketing and sales staff. This is why we encourage multiple bids, it’s important for you to learn about your various option and feel comfortable with your contractor.
Please note that our pricing assumes that the scope of work hasn’t deviated from the original plan or budget presented. Please review our contract for additional details and stipulations.
Yes, if you have a set of plans and a detailed scope of work we can bid your project but we request a retainer to assure that you are committed to the project. When dealing with banks, a draw schedule will often be required. If a draw schedule is required or if the client prefers to have the entire projected bid out an agreement will be signed before proceeding and a contract can be drafted with a draw schedule allowing for progress payment disbursements.
Yes, we also provide bidding services for general contractors and owner builders. If you are a general contractor or owner builder and need assistance in bidding a project, please give us a call. With an accurate set of plans we’ll help in generating a detailed scope of work, bid your project out, and provide an itemized cost breakdown.