I set up an Excel spreadsheet (with some help) for pruning or removal bids.
It has active cells next to a wide range of possible parts: number of employees, wages for each, hrs., subcontractors, their hrs, OH and travel. The employee hrs are doubled, the subs have 20% added; OH is a range of numbers based on a proportion of the job total, the idea being that on bigger jobs, you use more equipment and incur more wear and tear.
It works pretty well, especially because it reminds you to include all possible costs (you just leave some options out by not filling in a number). Comes out with around 20% business profit (I make more if I am in on the job with a wage as a climber or safety/job site manager on crane jobs). That 20% then goes to pay for my office time and bidding time, as well as for buying new equipment and a draw for personal income (if all goes well).
Problem: you can still underestimate the hrs needed for the job! Nothing to help there but experience.
I have learned to stand firm on my bids and not negotiate lower, because I end up doing nearly the same amount of work anyway--- clients have NFI about what: "I'll do the clean up" or "the grass doesn't matter" amounts to, so you have to do a lot of clean up and site protection anyway or they will snivle and get pissy, about the war zone that was their yard, never mind the liability of leaving hazards behind.:bang:
I think so anyway. And I am getting better at enforcing my own contracts -- as in: "no, I can't split the job up, no, I need to be paid in a lump sum, not installments, no, I can't put off part of the job for two months, yes, I need a down payment on a two or three day job before I start, etc. or it is a NEW CONTRACT and will COST MORE"
. Well, in the future, anyway, I am too much of a softy
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