All good advice. Consider this... you do a small patio, 300 sf, for what amounts to $18/ ft. Then you get a call for a 15,000 sf job, and use the same sf number. There had better be a lot of access and soils satbility issues to justify a total cost of $270,000!!
I prepare all jobs in the same manner, considering production projections, materials and equipment costs, overhead, etc. My contract lists a lump sum total, with a breakdown for what the sf pricing is for that job. I list the sf number because I know my competitors are using sf numbers, so it makes a cost comparison easier for the customer when bid evaluations take place. I also list, in detail, what the customer is getting for their money. It makes the document longer than one page in most cases, but they usaully have few or no questions for me once read. It is all spelled out clearly and plainly.
Knowing your overhead costs and formulating them into your bids is essential to your business success. I recently turned away a request for a side walk replacement ( 25 sf) because there was NO WAY I could do it and even break even and keep the costs affordable for the homeowner.
Last edited by PaverDrew; 03-07-2008 at 08:07 AM..