Need Advice 1

[Contracter]

Hey,
I have a small problem and so I figured I would post my issue and see if anyone can help me out. I'm a drafter of 10+ years with most of it being structural. I've always done side jobs and have had no complaints. I was living in Spokane WA. and was working for a Concrete construction firm as a field engineer. The guys I worked with loved my work. I've since moved to LA California and am now contracting with the same company. At first they paid me hourly, but now the new Project S.I. I'm working with is not comfortable with paying me hourly. So he wants me to bid the project I'm supposed to be helping him with. I've never bid commercial projects before and I'm afraid I'm going to lose my shirt if I'm too low or lose them as a client if I'm too high. Does anyone know how I can find a good rate to charge?

 

[TCARPENTER]

Hi Contracter,

Sorry - no easy answers here - you'll need to do some homework. The best way, is to estimate how long you think it will take, and calculate your hours based on your estimate. Past billing information will be critical here. If you don't have any old information, be prepared to eat a few bucks. The hard part is moves, adds and changes. Scoping design work is always tough - I have some clients I charge hourly, and some I actually charge per square foot. I had to go back through all the old jobs, what was billed, and what the square footage was to figure a price. So far, I haven't come out too bad. Here's the rub, many clients feel they can make any changes they want for free just because your giving a set price - this is where you have to be careful. I usually submit it once for their approval and if there are mistakes - that's obviously my dime - but anything else is hourly - usually a 2 hour minimum. The other thing I find helpful is to not only specify what you will do, but also what you will NOT do - this way, at least your client will understand one price isn't a blank check for him/her.

HTH
Todd

 

[Contracter]

Thanks TCARPENTER,
I'm thankful for your advice.