# New Construction pricing



## journeyman777 (Mar 29, 2011)

I need help or direction on bidding on new construction homes. I've been doing service work using flat rate. I haven't estimated any new construction homes before. I have a new opportunity with a builder (also long time acquaintance/family friend) who wants me on board for 4-5 houses a year. I'm just starting out , so I'd like the opportunity. I'm lost when it comes to pricing a new construction home. Interested to hear some of the methods for pricing it out. Anyone using software to do estimating on new construction homes? He's been doing this for years, So he has a good sense with pricing. I'm about 3 months into running on my own and could use the work and experience.


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## sbrn33 (Mar 15, 2007)

Chances are he will tell you where you need to be. Chances are It will be to low to make any money.
I price mine by the outlet,gfci, range and so on. Takes awhile to figure out. Everybody has their own way of doing things and if you did it by the book you will never get a house.


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## drspec (Sep 29, 2012)

I refuse to bid new construction. Everyone around here bids square foot price. I know of 2 companies around here that are doing houses for $1.84/sq ft and $1.91/sq ft.
Yes you read that right. And that is including all devices, cover plates, smoke detectors, panel, breakers, AND sometimes recessed cans, trims and bulbs.


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## icefalkon (Dec 16, 2007)

drspec said:


> I refuse to bid new construction. Everyone around here bids square foot price. I know of 2 companies around here that are doing houses for $1.84/sq ft and $1.91/sq ft.
> Yes you read that right. And that is including all devices, cover plates, smoke detectors, panel, breakers, AND sometimes recessed cans, trims and bulbs.


WOW! You know...I heard that guys are doing houses on Long Island for $5K and I was like NO WAY...but when you put it like that...it makes sense. Talk about cutthroat pricing. How can anyone...union or non union compete with numbers like that?


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## Cletis (Aug 20, 2010)

*$7*

I'd go $7 - $9 per sq foot to be safe


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## drspec (Sep 29, 2012)

icefalkon said:


> WOW! You know...I heard that guys are doing houses on Long Island for $5K and I was like NO WAY...but when you put it like that...it makes sense. Talk about cutthroat pricing. How can anyone...union or non union compete with numbers like that?


 
How can you make money like that?

I was doing some vacuum piping for a new construction house and the builder asked me to put in a bid for the electrical work. 
House was 4100 sq ft, 3 stories built 12" on center, all gas with like 30 recessed can lights and undercabinet lights in the kitchen. Said he was currently paying $9k for it. I had already spoken with his current electrician. He said he was being paid $8400.
I told him there was no way I could even get close to that price.


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## icefalkon (Dec 16, 2007)

drspec said:


> How can you make money like that?
> 
> I was doing some vacuum piping for a new construction house and the builder asked me to put in a bid for the electrical work.
> House was 4100 sq ft, 3 stories built 12" on center, all gas with like 30 recessed can lights and undercabinet lights in the kitchen. Said he was currently paying $9k for it. I had already spoken with his current electrician. He said he was being paid $8400.
> I told him there was no way I could even get close to that price.


Yeah, I hear that a lot from guys who do residential here a lot. Even a friend of mine who's a large non union contractor will tell me that there are guys literally doing it for cost thinking that the GC is going to give them more and more homes...that they'll make it up down the road. 

That's a very slippery slope! GC's will do that to EVERY sub...union or non union...once you start that game you've already given him all the cards in your hand.


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## LARMGUY (Aug 22, 2010)

icefalkon said:


> WOW! You know...I heard that guys are doing houses on Long Island for $5K and I was like NO WAY...but when you put it like that...it makes sense. Talk about cutthroat pricing. How can anyone...union or non union compete with numbers like that?


It really makes sense because houses are usually thought of as built by the square foot. Around here, that is around $75. Sq ft.


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## chicken steve (Mar 22, 2011)

journeyman777 said:


> I need help or direction on bidding on new construction homes. I've been doing service work using flat rate. I haven't estimated any new construction homes before. I have a new opportunity with a builder (also long time acquaintance/family friend) who wants me on board for 4-5 houses a year. I'm just starting out , so I'd like the opportunity. I'm lost when it comes to pricing a new construction home. Interested to hear some of the methods for pricing it out. Anyone using software to do estimating on new construction homes? He's been doing this for years, So he has a good sense with pricing. I'm about 3 months into running on my own and could use the work and experience.


the FR doctrine , as well as their followers here, insist upon _not _bidding

as such, FR'ers delve into the _competitive_ arena are lost

bidding means being competitive _within_ one's demographic, so whatever method you apply needs to have some tether to your peers

if in fact you've friendly competition _(which i would highly suggest to anyone starting out)_ , it would behoove you to seek thier counsel

other than that, there is the _sq ft_ method, there is the _'per stop'_ method, there is the _% of job_ method utilized

each has it's pro's cons. for instance the sq ft method on an 800 ft shanty falls on it's face fairly quick when it is realized all the same amenities apply

~CS~


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## journeyman777 (Mar 29, 2011)

A lot of good info here....thanks... However, I'm

No longer excited about bidding this job....


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## macmikeman (Jan 23, 2007)

journeyman777 said:


> A lot of good info here....thanks... However, I'm
> 
> No longer excited about bidding this job....



I woudn't have been either.....


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## Neoursa (Sep 22, 2012)

At cost? That's rough. The GC will still want cheap work even when they throw a few more crumbs at you. Good luck when things tank and you're owed money. All loss then.


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## denny3992 (Jul 12, 2010)

Its a long story but here you go....

7 yrs ago i was hired at a mech co opening an elec division, we priced a bunch of homes for an existing customer( already doing hvac and plumb) did a bunch of homes and wire prices climbed , almost doubled... There other electrician who did 80% of there work never raised prices? I told them we needed more money! I showed them in black and white what wire prices had done to the pricing... It increased like $400 bucks per house!!!! They said well our other guy didnt raise his price! I said" well if he cando it at this. Cost then hes been ripping u off for years!!!!!! They refused to increase we stopped doing elec for them...... Gcs are all crooks!!!!!


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## oldschool (Aug 2, 2008)

Just do it,

Square foot price it, price it by the hole, let him tell you what he's been paying, whatever. Your not going to lose money, you just may not make what you want.

What you will get though is experience for the next one. If you want another one.

Keep a folder just for that job, keep track of all time and material. 

Just do it, its just a house, it wont bankrupt you even if it goes south.


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