When I am doing an estimate, I can do it in several ways:
I can figure it up based on exact specifications and exact plans: this method is good because the only variable is the labor and overhead cost from company to company. However it does require those exact plans and specifications. Every item in the project must be named exactly and must be available at the time the project is done.
I can figure it out based on what I want to do and how I want it to look: this method is only good if you want what I want.
I can figure it out based on a budget: this method is good because I can offer the customer choices based on that budget. For instance I can do away with the marble tile on the floors and suggest a better product that will bring the job more within the budget. I can also suggest a lower priced option to help bring the cost down below the budget.
Additions and remodels can vary greatly in cost. From an open patio cover to a fully equipped kitchen or bathroom, costs range from $50.00 to $500.00 or more per square foot.
Budget plays a big part in many projects. For this reason, I get with a customer first and work out a ballpark price on the job. When I am going over the project like this, if I get the budget from the customer, I can give them a bid that fits into that budget. If I am told a budget that cannot be met, I can advise the person to increase their budget or change the scope of work.
I base my estimates on my cost, “hard-cost” and what it takes to produce the desired remodel or addition. Once I have the hard cost, I add my cost to operate my business, office space, transport, office payroll, etc., commonly referred to as “overhead”. Then I add in “profit” to that and have a price I can do the project for. There is nothing else I am asking for when I give you a bid, so your budget is what I then turn around into a done and completed project for you.
