Residential Proposal
Residential Proposal
(OP)
We do mostly residential structural design. I just want to get your inputs on how you usually come up with the amount on the proposal. What is the effective way to do proposal? I feel that square footage is not very effective because some projects are more detailed than the other. Remodel is always harder than new projects but usually remodels are usually low budget projects. I want to write an excel spreadsheet to help me with this process. Any tips will be appreciated (especially if you are in the same business).
Never, but never question engineer's judgement
RE: Residential Proposal
Seemed to work for his jobs.
RE: Residential Proposal
1. As CSD 72 says if you are doing the whole job to include drafting.
2. On a cost per square foot basis as you suggest, but factoring in a higher cost for more complicated jobs - say $1.00 to $1.50 per square foot of the building.
3. On a percentage basis of .5% to 2% of the total cost of the job, and
4. On a hourly basis, estimating hour total hours and adding 15% for profit for the firm.
Run it all four ways and see what the average, the market to get the job, and your guts tell you. That's what I do.
Mike McCann
McCann Engineering
RE: Residential Proposal
Mike covers it pretty well. I will add a couple of thoughts as I'm in Colorado and used to exclusivly do residential work.
I agree it varies with complexity. I review the plans and estimate based on hours to complete the project and required site observations. Back calculate the square foot costs.
Our square foot costs rarely go below $1.30 anymore where when I started they averaged about $0.85. This seems to hover around the 1% of constuction costs mark.
RE: Residential Proposal
Rday, if you have 700 sq ft pop top, $1000 is too small I think. I started to bid $2/ sq ft. Do you agree? An addition however, I agree $1.30 is a pretty fair #.
Never, but never question engineer's judgement
RE: Residential Proposal
RE: Residential Proposal
I think you're in line. I was really only considering new construction. My bad.
JamesBarlow,
I share that amazement and always have. The worst part is, even with those numbers people still give you the OMG it's so much. And someone will always do it for half what I propose.
RE: Residential Proposal
That is exactly the problem with this industry, there is always someone who charges far too little.
RE: Residential Proposal
for remodeling jobs, I gave up the idea of being able to calculate an accurate price based on parameters such as squarefootage, construction cost, or whatever.
After reviewing the scope of work, I rely on my guts (which of course are backed up by some years of experience). Sometimes I win, sometimes I lose. As long as it averages out on the long run, I'm ok.
RE: Residential Proposal