# New Residential Construction



## HARRY304E (Sep 15, 2010)

RJEJ84 said:


> When pricing out new home construction, do you typically go by square footage? and things like dimmers, recess, under cabinet, etc are extras? whats the going rate in your area per sqft? i typically do service work but enjoy doing houses. I just priced one at $4 sqft plus extras. I got it so just wondering what some other opinions are


You need to have a count of all the stock and figure all the hours it will take start to finish include all the time figuring the job and all the time to get your permit and your rough and final inspection , make sure you know what all of your costs are so you will make a good profit.


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## 3xdad (Jan 25, 2011)

Take the time to look at the real numbers as Harry pointed out.

Look. You got this job at $4 plus extras. You are in it now. Use this job to compile data. Keep detailed records of ALL your expenses and time. When the job is done, sit down and reconcile what profit you actually made.

Just for kicks, take that same house and multiply by $8/sq.ft and it will give you a better idea of where you might need to be.


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## Spark Master (Jul 3, 2012)

Do you charge by outlet? time ?? footage???
I just did a house, outlets every 6'. I liked it. Didn't look intrusive at all. Customer loves it.


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## chicken steve (Mar 22, 2011)

You can work the math any way you like, as long as an amicable P/E ratio occurs in your equation.

In the broader scope, any job runs on two basic elements, $$$ & decisions

I find that most resi customers who solicit me have a hard time making decisions

....but ask me for my_ 'bottom dollar' _just the same

so....what i do is list major appliances to be addressed, create a lighting print, and bid it all _'code minimum'_, then parse out _'options' _such as smoke/co protection (because it could all be low V by the alarm guys) , furnace option (because the plumbers often wire it) , any dimmers, controls, detectors, etc following suit....

9 times outta 10, they focus on the lighting part , which will often be the lions share of 'extra's (especially if those lighting ladies appear!)

Trust me on this, people ask for a per sq ft $$$ ALL the time, because the builders they're soliciting are spittin' sq. ft #'s to get the job. Lower your bids via a minimalist approach, let _their _indecision be your profit.

~CS~


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## Bootss (Dec 30, 2011)

do you think you're any good at wiring houses? I think it all boils down to methodology 
do you think your process of wiring a house is efficient,etc.Keep track of your wiring time,, travel time, picking up parts, inspection,etc. then you can dial in your price better later on the next job


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## Bootss (Dec 30, 2011)

Upsell with;
attic fans
bathroom exhaust fans an lighting
ceiling fans
garage lighting extra outlets
home theater


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## flyboy (Jun 13, 2011)

Lots of good advice here in this thread.

At 4 bucks a sq/ft you need to hit the ground running.
I hope you have a well written contract that spells everything out the scope of work, payment schedule and how extras and change orders are to be handled. 

You should specify payment for extras and change orders to be paid when invoiced. Your going to need to do this for cash flow purposes.

Negotiate the best price you can on your material.

Know the NEC and don't do anything beyond a basic, minimum code job.
Don't give away or do a thing for free. If you do, you run the risk sending the wrong message you might regret later.

Avoid misunderstandings and preserve a good relationship with your customer by getting all the extras and changes written up, approved and signed before you do the work.

When you get home at the end of the day, invoice for the extras and change orders and specify "due on receipt". 

Don't rough the house until the plumbing and HVAC guys are done roughing their stuff in.

I'm sure I left out lots of other important stuff you'll need to know, but others will be along to fill in the gaps.

Good luck...


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## electricmanscott (Feb 11, 2010)

I use sq' pricing for new construction and I do a materials and time price too.


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## RJEJ84 (Sep 18, 2013)

I do consider myself pretty good, quick and efficient at wiring houses. I always just did tem on the side and never had to much issue showing profit. Now at that time I wasn't so much worried about or took into account my hours spent in each aspect of the job. With that being said, now that I'm treating this as an actual business I am keeping track if everything I do from here on out to better my pricing as I go. I stay extremely busy working my side business but don't have to rely on it as a main source of income (yet). Maybe if I continue to grow and the jobs are just getting to much to juggle with my full time job then I'll make the jump.


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## macmikeman (Jan 23, 2007)

Visit the Disney store and pick up one of those baseball caps with the word Grumpy embroidered onto it. Eventually if you keep up this residential wiring you are going to be needing it.....


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## RJEJ84 (Sep 18, 2013)

macmikeman said:


> Visit the Disney store and pick up one of those baseball caps with the word Grumpy embroidered onto it. Eventually if you keep up this residential wiring you are going to be needing it.....



Lol thanks I'll keep that in mind.


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## RJEJ84 (Sep 18, 2013)

Lemme also point out that this particular builder im working with, i have a great relationship with him, and i bid this without ever looking at the drawings. The house thats being built is also for the pastor of my church, so good relationship all the way around. He knows it was a rough number. Luckily I do all of his work. But because of the high cost of AF breakers, and wire, and all the other stuff that comes with it, i think i may ask him for a set of drawings to get more exact.


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## 3D Electric (Mar 24, 2013)

We go through the plan and mark everything. Then we count up all of the openings and use our pricing guide we made to find the cost lights $45 cans $80 ect...


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## B4T (Feb 10, 2009)

Sq, ft, pricing is for carpet installers and drywallers.. not electricians..

I make a list of every item going into the house and attach a price to it....

Make up a master sheet and you only have to plug in the numbers for future jobs...

You can also increase the value for different jobs that are more involved...


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## rewire (Jul 2, 2013)

B4T said:


> Sq, ft, pricing is for carpet installers and drywallers.. not electricians..
> 
> I make a list of every item going into the house and attach a price to it....
> 
> ...


 SQFT pricing is a holdover from the 70s when track housing was big. We didn't even have ceiling fans back then. All construction was based off a percentage of the GCs sqft price. The work was fast paced and code minimum. Bedrooms had a receptacle in the middle of each wall a single switch and light outlet. After you did one the rest were easy.


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## MHElectric (Oct 14, 2011)

Sq ft pricing is an interesting animal. To make money at it you need to already be proficient at wiring homes and be so stingy with extras & changeorders that the GC thinks twice before he even asks you. 

Everyone has pretty good advice here, everyone has a different take on this work. One man will grow rich at New homes, the next man will lose the shirt off his back. Very cut-throat, very fast paced, lots of long hours, lots of weekend work, lots of builder/GC BULL CRAP....tough, very tough to make it here.

I liked the work, but after I saw what I made off each house, and after dealing with some of the most crooked people in the business, it didn't pay the bills. I would personally either go "all in" or not at all. I dont miss the nonsense that came along with the work.


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## electricmanscott (Feb 11, 2010)

rewire said:


> SQFT pricing is a holdover from the 70s when track housing was big. We didn't even have ceiling fans back then. All construction was based off a percentage of the GCs sqft price. The work was fast paced and code minimum. Bedrooms had a receptacle in the middle of each wall a single switch and light outlet. After you did one the rest were easy.


Tract, unless you were working for the railroad.


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## Bootss (Dec 30, 2011)

I think most of the guys prefer service work rather than new residential construction.
or they make more money on service work. My rule of thumb with new construction is they play my progress payment game or good bye.


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## rewire (Jul 2, 2013)

electricmanscott said:


> Tract, unless you were working for the railroad.


 do you feel better about your small penis now :whistling2:


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## electricmanscott (Feb 11, 2010)

rewire said:


> do you feel better about your small penis now :whistling2:


Speaking of penis, how many pictures do you have of you and Dennis'?? There's not any other reasonable explanation why a douchebag like you is still allowed here. IMO of course.


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## Going_Commando (Oct 1, 2011)

Lep said:


> I think most of the guys prefer service work rather than new residential construction.
> or they make more money on service work. My rule of thumb with new construction is they play my progress payment game or good bye.


There is a higher profit margin in service work, but you can get more billable hours and more volume in construction, so it kinda balances out. I like a mix of both with a preference for construction, as there is less d*ckering with customers.


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## electricmalone (Feb 21, 2013)

Higher profit margin in Resi svc, less exposure. If I mess up and customer doesn't pay, we're out maybe $1000. If the construction guys mess up, we can be out $100k+ on some of these jobs. Company is trying to get more service work, I have had four straight weeks of netting the company just over $6000 each week. I'm trying to train two guys on my awesomeness... One construction contract just closed, final profit was just over 30%. He netted the company an average of $3000 for each week of labor worked, but company had to float large stock bills for months between progress payments. Still nice to get the big construction jobs. Find a balance, do it all.


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