What's your strategy for pricing construction jobs? | Nick Schiffer Podcast
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- čas přidán 6. 08. 2024
- #02 Nick Schiffer Podcast. Nick Schiffer answers your construction, renovation, and business questions. Nick gets a lot of great questions through direct messages and he's going to answer them in-depth weekly on Coffee Break. This week the questions are:
00:36 How do you elevate the projects you get hired to do?
04:41 How to best plan from start to finish for design details?
07:36 Is it smart to take a loan to have some working capital?
10:06 What's your strategy for pricing construction jobs?
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How do we manage our projects from the big picture all the way down to the smallest detail?
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00:36 How do you elevate the projects you get hired to do?
04:41 How to best plan from start to finish for design details?
07:36 Is it smart to take a loan to have some working capital?
10:06 What's your strategy for pricing construction jobs?
These videos are great, honest and very thorough. They are a great series and I just wanted to say thank you.
Your story about the staircase hit me hard as it is something i do every day. Pushing these "normal" projects to the next level. Thanks for the help, keep these videos coming
Nick,
thanks for sharing and the attention to detail is not lost on me. It's all in the details and your projects are impressive. It's great to see the craftsmanship.
Cheers
I never understand why so many want to work on these jobs for so little reward? Why not buy a property, use your skills and sell it? Margins can be very good, and if you buy properties right and don't get seduced (property markets usually go into recession once a decade so don't get caught with your pants down like so many builders do - they ride the good times and get hammered when the inevitable slowdown happens). That way you can get away from the vagaries of always working for clients. Don't build mansions (it's a thin market). $1-$3M-range properties are a decent sweet spot. Then you get to decide what matters - do you build a wall-board mansion that has shitty framing, mechanicals to maximize profits (maybe you do to start to get some capital)? Or do you have integrity and build quality homes? Yes, starting out you'll likely be asked for collateral (ie, your house) to get a construction loan, but if you bank profits (don't be an idiot and buy new trucks, a supercharged Range Rover or rent a fancy office - your banker doesn't care, nor do the people buying your properties), you can self-fund in a few years. Once that happens, you're master of your own destiny and not beholden to clients texting you during your daughter's birthday because of low water pressure.
this helps me so much and that’s just an understatement
Great video! Thank you
Thank you!!
Fantastic Video! 👌🏽
I love NSBuilders work and enjoy the channel. I'm 4 years into the business and still am uneasy about how I bid confidently and honestly. It sounds like you're profit model, and therefore your estimates, must take those investments into consideration, otherwise you wouldn't be able to pay the bills. I see a bunch of businesses do the same thing, but price a job for a markup that they can return to the client as a "discount" or savings. To date I still haven't figured out what that markup ought to be for our projects, but I like NSB's 'less salesman' and more 'everbody's equity' philosophy.
Thanks for the content!
Hello from Swampscott, love your work!
Do you ever feel like you've bitten off more than you can chew / feel overwhelmed by the project? Do you just power through it or is scope adjusted / expectations tempered? With the work I've seen you all do, it doesn't look like you've encountered it... great work every time.
That example with the stair case and the "over"-investment is slightly different from what I think people are talking about normally which is pricing low to get the job and not making enough money, this approach is a lot more strategic and tactical.
Love the retainer concept! We use a similar “project development agreement,” which really weeds out “tire kickers” and gets the whole team focused on building a financially viable project.
But how can an owner commit without knowing at least a ballpark price? Are you saying clients pay retainer without a clue how much the project will end up costing?
I'd like to know how this works because I'm planning a big project and don't want to lose a good contractor by asking stupid questions
We get in the ballpark, have a clear understanding of their budget, we’re open with the finances and we work together to set and meet expectations. Even if that means we need to value engineer to hit a certain price
@@NSBuilders
Thanks. That makes sense.
@@NSBuilders do you guys use the aia design-build model or your own system for contracts? I've found that clients appreciate the design process more if they pay for it and can see how the investment in planning pays huge dividends later.
Re. pricing... Do you at least give a ballpark estimate before retainer? I mean, to commit, the owner at least gotta have a ballpark budget or know what to ask the bank (loan).
I really would like to know how to work with a contractor. Thanks!
Are you guys going to be doing a job in East Providence?
Nick looks sooo stoned in this video ;) Maybe use some ClearEyes Redness Relief....
These days everybody is not trying to spend that kind of money doesn't sound like you trying to help the small guy meaning the person that spending the money