How Tradesmen Works Out Job Prices Using their Day Rates and How YOU Can Check His Quotation Yourself
It’s a simple process based upon a simple theory:
Below is the “Pricing Formula” that all Tradesmen, including ourselves at The Building Sheriff, use when pricing building jobs.
Cost of Total Tradesmen Man-Days + Cost of Total Labourer Man-Days + Cost of Materials = Price of Job!
Therefore a 2 day job for a tradesman and a labourer will cost 2 x £160.00 (or appropriate rate) + 2 x £100 (labourer on £100 per day) + £200 (example material cost) = £320+ £200+ £200 = £720 Total Job Cost
When a tradesman comes to price a job, ask him to break down his costing into SEPARATE PRICES for labour and material costs.
When you receive his quotation (NEVER accept an estimate) call him and ask him how many days the job will take and how many tradesmen and labourers he will be employing during that period.
Ask him what he charges as a day rate - (say you might want him to do the job on a day rate if he asks why). (In today's economic climate, if he charges more that £160.00 per day, I would seek alternative tradesmen immediately).
Multiply the number of tradesmen-days by his day rate and multiply the number of labourer-days by £100 (this is generous).
Add the Tradesman and Labour totals together.
Compare this to the figure for labour costs in his quotation and see how accurate and fair his price is.
If there is a large difference - GO ELSEWHERE! I never would recommend trying to get a tradesman to reduce his price - why was he charging so much in the first place?