T&M for complete house rewire

[AC\DC]

Hello, I was asked by a GC to do a house remodel. They don’t want me to bid it just T&M. They are suppling lights(cans). I told them I make most of my money on mark up so my hourly rate will be adjusted.


I have not told them my rates yet. They want me next week to demo.How much increase on your time would you go to make a T&M as profitable as a bid job.

I am not the type to slow down and milk a job would rather charge more and get it done at my normal speed.
Thank you guys

 

[LarryFine]

I would give them a flat price, so you benefit when you hustle, not them.

 

[ptonsparky]

Make sure they know you are on the clock waiting for materials or making corrections. No warranties on items you do not provide.

Remodel as in all new wall covering or maintain existing?

 

[infinity]

Not sure why you would need to milk a job to make money when you're being paid by the hour. If your hourly rate includes wages, overhead and profit how can you actually lose?

 

[AC\DC]

Not sure why you would need to milk a job to make money when you're being paid by the hour. If your hourly rate includes wages, overhead and profit how can you actually lose?

I understand at my hourly rate I will make a profit.

lets say I bid the house at 60 hours labor . Then it only took 40 that extra 20 is profit.

I don’t know anyone that will give that extra 20 hours back to customer( mechanics, lawyers, GC all would pocket)

So I have to try and come up with an hourly rate
Or just flat bid like Larry said.

 

[AC\DC]

Make sure they know you are on the clock waiting for materials or making corrections. No warranties on items you do not provide.

Remodel as in all new wall covering or maintain existing?

About half the 2k sqft house is being rewired only opening section of wall that is needed.

 

[infinity]

I understand at my hourly rate I will make a profit.
lets say I bid the house at 60 hours labor . Then it only took 40 that extra 20 is profit.

It could also take you 80 hours and then you would lose money. Fact is if your hourly rate is figured correctly you will still make a decent profit and everyone is happy. If you're able to bid a job and estimate for 60 hours of work then you can also figure out the correct hourly labor cost.

 

[AC\DC]

It could also take you 80 hours and then you would lose money. Fact is if your hourly rate is figured correctly you will still make a decent profit and everyone is happy. If you're able to bid a job and estimate for 60 hours of work then you can also figure out the correct hourly labor cost.

Good point.

 

[growler]

Not sure why you would need to milk a job to make money when you're being paid by the hour. If your hourly rate includes wages, overhead and profit how can you actually lose?

Hello, I was asked by a GC to do a house remodel. They don’t want me to bid it just T&M. They are suppling lights(cans). I told them I make most of my money on mark up so my hourly rate will be adjusted.

It's common for a GC to supply a lighting package but what about all the other materials?

If you know how much you would normally make on a job like this it should be easy enough to come up with an hourly rate. I would get it straight that I would be able to work/bill at least 8 hours a day and anytime they call for something minor that's 4 hours minimum.

 

[winnie]

lets say I bid the house at 60 hours labor . Then it only took 40 that extra 20 is profit.

I don’t know anyone that will give that extra 20 hours back to customer( mechanics, lawyers, GC all would pocket)

Is it T+M, or is is a flat quote expressed as T+M?

If you say $90 per hour and work 40 hours, that is $3600, even if you expected the job to take 60 hours.

You can estimate how long the job will take, and tell the customer that, but if you commit to a specific number of hours then you've made it a quote for the job, not T+M.

Jon

 

[anthonysolino]

157% on materials 100 an hour in Florida for service work. it seems to be profitable run on about 30-40%

 

[George APG Electric]

Hello, I was asked by a GC to do a house remodel. They don’t want me to bid it just T&M. They are suppling lights(cans). I told them I make most of my money on mark up so my hourly rate will be adjusted.


I have not told them my rates yet. They want me next week to demo.How much increase on your time would you go to make a T&M as profitable as a bid job.

I am not the type to slow down and milk a job would rather charge more and get it done at my normal speed.
Thank you guys

Could you try a hybrid approach? Quote a high fixed price (here in Santa Rosa, Sonoma County, Ca.) most electricians assume a minimum of $245 for each fixture (light, switch, outlet) for the rough and finish work. Cover yourself by marking that up 15%.
The hybrid approach would be to track time and parts as if it were a T&M ($165 per hour for journeymen, $145 for apprentice) and, then, when you're done, compare the two and negotiate with the GC. Even though he might spend more than a fixed bid, he might even appreciate your willingness to offer a flexible approach. You both win!
Keep in mind that you would have to spec progress payments to take care of cash flow, say 15% of the total estimated based on, let's say, a 6-week project...as long as you and your crew were making good progress.
Let me know if this makes any sense or if I'm too wacky; we've done this kind of thing before and the customer ends of winning, sometimes, with a T&M approach and...we get more work because we're trustworthy. ;-)