I am trying to find out the best way to come up with a way to figure what to charge for remodeling as far as time, labor cost, materials, overhead, etc. Is there a formula that makes this easier? I have a friend that is new to the business and was wanting a way to decide what to put on a bid. Can anyone help or know of anyone who can?

if he's looking at starting up he should go work with some others and gain the experience....you can check with other local contractors and your local suppliers and they will give you a good idea. Just remember they bid a job as to make a profit, where your resources are not the same, you may loose money.

Down and dirty is easy enough-

General calulation:
$35-45 dollars an hour for non-skilled labor
$55-75 dollars an hour for skilled labor

This amount covers overhead of 2 per worker. But is highly dependent on location. Why the big gap in the numbers.

i.e. people in midwest usally charge lower end, while we in Seattle go $75 dollars and up.

Materials is much easier-
10% is standard mark up. Also standard mark up for an subs working under the general contractor.

For example - sub one charges $1,000 dollars- general contractor will tack on 100 in overhead fees.

25% mark up on an custom ( hand made )or hard to get items. Mostly overseas items.


So small job figure hours x type of labor.
Add in materials x 10% mark up.

Larger job figure in hours x type of labor.
10% of subs bid
10% of all standard materials
25% of all custom materials


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We use this profit margin and relay on a 15-25% take home after everything is paid out.

so 25 cents on the dollar in take home, after labor and materials are accounted for.

Hope this helps some, btw there are some programs you can plug in varibles like labor / materials and it will do the math for you.


Fair warning bids can go bad, so make sure there is some fluff in the final number. ( just a suggestion ) Really it's simple.. i just probley made it sound harder then it is.

He's got the experience as far as doing the work. Let me tell you he does some wonderful work, I've seen it. He just doesn't have the knowledge on what to charge for what, you know. He has been wining it the last year, but wants a more standard way to figure, like a percentage markup or flat rates or whatever else there is. He has a book that has detailed info in it and everything, but he is looking for something simple that he can just figure it himself instead of looking each individual thing up in the book and figuring from there.

Thanks Joe, we are in Mississippi, what do you think the differences would be from what you put up there?

Well finding out standard hourly rate in your area is actually pretty simple.

Dependent on his trade carpenter, electrician, plumber.. you can call shops from the phone book and give them a "made up job" ask what hourly rate is for them to come out.

Given my location i charge $100 dollars to show up and $75 every hour after. On a bid job we charge 65 dollars an hour per guy.

a quick calculation Ive used is this
materials = x + the cost again + 1/2
ie 100+100+50= 250
if your doing an 8hr job in 2 hours...your making some money
,but if it takes you 3 days to do the same job....its time too look elsewhere.

Given your area i would say lower end of the scale, but call around.. enough shops need work right now. They would jump at giving you rates/bids, which you can then turn into a base number for your friend to start at.

LOVE FLAT BIDS!

Electrical panel / Service change- $3,500 underground/$4,500 overhead... both can be done in a day by one guy.

So much butter.. if you don't die doing it.

You guys are great! Thanks a lot, this is very helpful!!

I can

Contracting or handyman type of work differs around here handymen charge a flat hourly rate... but if its a bid on a job..? well ususally its cost of materials and 50 % mark up plus his hourly rate. And hourly rates depend on several things local ecomomy ( what the market will bare) his out lays gas/ time/ medical costs for himself.. needs to know all the little details what does it take to survive i.e some people can live on 3,000 or less a month and like that range so they do a quick figure that 40 hours a week x4 weeks =160 hours 3,000 divided by 160= about 18 something an hour see where this is headed? BUt again thats just an example and $18 dollars an hour ? what if he doesn't work 40 hours a week so they have to adjust Thats why contractors charge 60-75 an hour.. > know your market is there 40 hours a week of work or not? and adjust the charges accordingly..A good contractor knows exactly how long a job will take..