5 Tips to Stay Profitable when Pricing Construction Jobs

June 12 2015   10 AM  

Estimating software is critical to accurately price big construction jobs, but when you’re a small subcontractor, it’s not always necessary. Here are 5 key considerations to account for when estimating a construction job without advanced software, to keep you profitable:

1. Labor Costs

  • Are you paying workers comp or are they covered?
  • Do you have employees or contractors? If they are employees, you must consider superannuation, long service leave, leave loading. Read more on the topic here.
  • Travel, training, unproductive hours – travelling can be a nightmare for you if it’s on the clock. Know the consequences when pricing the job, and reflect it.
  • Recruitment – Do you spend hundreds and thousands of dollars with expensive labor hire agencies and job boards that guarantee no success?

2. Insurance & Licensing

  • Trade insurance – it’s expensive, so calculate your insurance costs and attribute them to the job. Here’s a simple example:

I am quoting a job that will engage 50% of my resources and take 2 months to complete and I pay $12,000 per year on insurances.

$12,000*50% = $6,000

($6,000/12 months)*2 months =$1,000

  • Trade Licensing – Consider the costs of maintaining all your licenses on an annual basis and apply the same rules as the insurance example above.

3. Vehicle Costs

  • Fuel – How many tanks of fuel across all vehicles does it take to get to the job?
  • Tolls – They add up so account for them every day.
  • Parking – Is parking available on the job or will you need to pay? These costs vary dramatically depending on where you are so readjust this for every job.

4. Rent & Equipment:

  • Are you renting an office space to run your business? These are costs that must be considered
  • Tools, repairs, skip hires? Anything specific to the job should be accounted for.

5. The weather

Buffer for the rain gods!

At ConX, we know how hard it is to run a business. We’ll save you the headache of recruiting good staff. When you post a job on ConX, we’ll send you a list of suitable and available workers and only charge you when you successfully hire a winner. 

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