Home repair and construction job estimation is not an easy task. The process includes many factors that affect the total costs, such as, true labor costs, materials costs, overhead, and profit margin.
If you want to estimate a home repair job, you must hire a professional contractor for this purpose, so that you will get an accurate estimation of the home repair jobs.
This article covers:
- Check The Previous Estimates
- Calculate The Cost Of Materials
- Calculate Labor Costs
- Accommodate Specialty Costs
- Add Your Mark-Up
- Do not Give Discounts
1. Check The Previous Estimates:
You need to view the past estimates for a similar project to get some idea of the home repair job. It will help you decide whether you should go for this john or not. You can also estimate the profit you can earn by keeping all the factors in your mind.
For comparing your past projects with the present ones, it is important that both of them should be of the same nature. If there is a huge difference between them, Then it is impossible for you to compare the past and present projects as it will not help you to estimate the job accurately. The size of the location is also a very important thing to consider if you are comparing past projects with the present. The location has a strong impact on the estimation of a home repair job.
2. Calculate The Cost Of Materials:
The second most important thing to estimate a home repair job is calculating the cost of materials. You can use a building material calculator for this purpose or just do the estimation by making a list of items you need for home repair service. The list will help you calculate the cost of materials easily.
There are many apps working for calculator g the material costs, You simply need to enter the list data of materials, and it will give you the final result of calculations.
A good cost calculator tool is really helpful for calculating the amount of material you need along with the type of material such as concrete, brick, wood, etc.
The contractor can also estimate the cost of material depending on the amount and type of material you need for your project. You can choose any of the above-mentioned methods for estimating the cost of materials.
3. Calculate Labor Costs:
It is advised to add the labor costs while estimating home repair jobs. It does not matter if you are the only one who is doing the job. If you have an employee working for you, then you must add the labor costs according to the hourly rate.
You can use a labor cost calculator for calculating the employee rates of different employees, such as organizers, supervisors, or site managers. The factors like overtime billing rates or specialized labor should also be kept in mind for the final price estimate.
Besides all this, many other factors also affect the final estimation, such as a worker’s compensation, benefits, bonuses, insurance, vehicles, and phone bills that may cost you. So all of these expenses should also be highlighted when you are estimating the home repair job. Labor costs along with the extra costs that you are paying to support your employees should be calculated too.
4. Accommodate Specialty Costs
If you are using some specialized materials for your job, you must add the costs of those materials for estimation purposes. You should verify the pricing of these specialty items yourself keeping in mind that the prices may fluctuate by the time you order them.
Estimating a calculator will help you a lot in this process as it will make adjustments of estimation according to the price fluctuation.
5. Add Your Mark-Up
You must set a mark-up for your job covering all your overhead costs and other expenses. It will help you keep a margin for a good profit. It also involves calculating the true cost of labor and accounting for other business expenses.
A powerful estimator tool can help you take this information into account, making things easier for you and giving you a certain amount to overcome unexpected factors that may affect your final project.
Some typical handyman expenses are:
- Vehicle mileage and maintenance
- Website costs
- Office supplies
- Phone and internet
- Monthly living expenses
- Health and liability insurance
- Licensing fees
- Taxes: self-employment, federal income tax, state income tax
The quoted hourly rate should cover these expenses.
6. Do Not Give Discounts:
Giving discounts to your clients may prove to be a big loss to your home repair business. It will badly affect your cash flow and professionalism, making you feel desperate.
You must try to raise your prices to increase your cash flow. If your client asks you for a discount, you must tell them that you will get back to them after reviewing the numbers.
People also ask:
How Much Does a Handyman Charge per Hour?
According to HomeAdvisor, a handyman charges an average of $60 to $65 per hour in the U.S. The price can range from $55 to $75 per hour for an independent handyman.
The average rate is $77 per hour, but it can rise up to $125 per hour for professional handyman services.
How Much Does a Plumber Charge per Hour?
According to HomeAdvisor, a plumber charges $45 to $200 per hour in the U.S. The total job cost is usually between $175 and $450 for jobs like repairing bathtubs, sinks, toilets, or faucets. The flat rate for a plumber is usually $300 on average.