How does a contractor price out a renovation?

How does a contractor price out a renovation in terms of their pricing?

 

That's a very open ended question.

Most contractors can come up with a price based on a general idea and from experience.
If you want a precise price you'll need to supply him with all finish details.

It's also a good idea to get several prices to be sure everyone is on the same page.

 

I agree with Pete. Too little information to go on. The contractor and owner will need to sit down and ask questions and answer them so both will know what will be expected. The smallest detail will come back to haunt you if it isn't brought up.

If a client wants a nut and bolt estimate, I will go through and build the house in my head and on paper, having prints made if necessary (not often), so I can provide every detail they bring up. Naturally any changes made after the ball is rolling will entail a "change order" and could bump the price as well.

Sometimes you can go through and give a general estimate just to see if you both are in the same ball park. From there the details start.

 

Great points, what type of margins are they trying to make on a job to run a proper business?

Will they calculate material, labor, then add in there margin to make the job worth there time?

Say in the case of a basement renovation where they want the basement gutted, insulated, framed, sheetrocked, new outlets, painted and new floors.

Thanks everyone!

 

Generally speaking, yes. Materials, labor, overhead, profit margin

 

the labor profit is how many days it will take to complete multiplied by how much to make per day. Any additional work that is added after the quote, is charged per days to complete.

 

Labor profit is also done by a percentage of the overall job rather than by days spent. Additional work is called a change order, and requires both parties to agree in writing to the changes and the charges for them.