"BUDGET" Numbers

"Cost Plus" ....... anyone ?
Well, you can either price the job .... or.... can work on a cost-plus basis.
Lots of times when you're dealing with "renovations", its a difficult task to arrive at a accurate price for the project. The unforeseen challenges will ...... no doubt , play a part ! The contractor will inevitably incorporate some "cushions" in his/her number to compensate for the unknown.
Without knowing the "exact" location of your mechanical routes, its hard to determine what is lurking behind the drywall, in your walls or beneath your feet. "Guess-timates" play a big part.
O.K., our experience does help, but you are constantly holding your breath hoping the previous
builder "did it right", most times its ....... surprise, surprise !! Can't believe your eyes !
Because we do a lot of "renos", ....... "cost-plus", is a common road to take. BUT, with cost-plus, comes the "evil"....... "BUDGET-NUMBER".
(Don't laugh, because I'm usually right)...... When we first meet a client to discuss a proposed project, I often say ...... " before you mention any of your numbers or your idea of what this job will cost, ..... DOUBLE IT ! " That comment usually garners a laugh.
When our estimate is handed in , we ask the customers to reveal "their" idea of the costs ....... and what do you know, the amount is "about double of what the home-owner thought".
Two of our projects that we completed last week ,............ were over our "budget-numbers",
NOT GOOD !
It is always better to ...... " under-promise and over-deliver". We're lucky to be well known for our integrity and our accounting is very , transparent, we show it , like it is . But, you can't help like feeling, that you let the client down, instead of .... $30,000. ..... its $36,000. ...... you get the idea. Be careful with "budget-numbers", better to start off with a higher number and come in below budget for your renovations .
Aaaaaahhhhh, let the learning, begin.
Later, Chris.