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This spring, summer and fall, we are catching up on some major projects that have been deferred for years.
Installation of a 20X24 pole barn. (Quotes ranged from $15K to $30K). (6 men, ~5 days)
Running electric to pole barn. (Quotes ranged from $3K to $6K) (2 men, 1 day)
Removal of a large 3 foot diameter 100' tree (Quotes ranged from $6K to $8K) (3 men, 2 days)
After getting numerous quotes for these projects, it's obvious to me that I've been in the wrong business. These particular projects were a bit beyond what I would tackle myself. But it's hard to justify $4000 a day for a contractor to do this work.
This spring, summer and fall.... What's your recent experience?
Current period work should have been quoted and contracted back in February.
Any "contractor" available (at any $$rate) at this late date knows this. Plans for it.
And probably doesn't have the rep needed to get referrals for the organized in advance contracts.
All of your examples are $3,000/day at the low end of the range.
You are falling into a pretty typical mistake though. That $3,000/day is paying for multiple skilled tradesmen. Insurance. Materials. Office support staff. Tools. Vehicles. Payroll taxes. Profit. Licenses. Other overhead such as advertising, accounting, etc. The risk that the job takes longer than estimated. etc.
Yes, contracting can be a lucrative profession, but it is also high risk. People do not pay bills, lawsuits happen, estimating errors can be costly, recessions will dry up business but owners still need to pay office rent and lease costs on equipment.
Lets look at that tree job you mentioned. Your contractors will need:
Wood chipper for debris.
Skid steer for moving log sections.
Trailer to haul skid steer.
Trailer for removing logs.
Trucks to tow those trailers and chipper.
Chainsaws.
Place to dump debris.
Stump grinder.
That is well over $100,000 of equipment. They need a yard or shop to keep that equipment in. You are paying for 6 days/48 hours of labor. At $50/hour (dangerous job, includes benefits such as health, liability, some set aside to pay for vacation...) that is $2,400 right there. That leaves $3,600 to pay for shop, office staff, all that equipment.
Seems a bit high, but overall pretty reasonable to me. About a year ago I paid $7,500 to take down several trees, including one the same size you mention. But I live in the PNW, so there are many people in the trade so there is competition, and constant business. The economics where you are might be different.
This spring, summer and fall, we are catching up on some major projects that have been deferred for years.
Installation of a 20X24 pole barn. (Quotes ranged from $15K to $30K). (6 men, ~5 days)
Running electric to pole barn. (Quotes ranged from $3K to $6K) (2 men, 1 day)
Removal of a large 3 foot diameter 100' tree (Quotes ranged from $6K to $8K) (3 men, 2 days)
After getting numerous quotes for these projects, it's obvious to me that I've been in the wrong business. These particular projects were a bit beyond what I would tackle myself. But it's hard to justify $4000 a day for a contractor to do this work.
What's your recent experience?
Maybe you should start a business as a general contractor and hire people who know how to do these and see how it works out. You don’t really have to be able to do all those things, just how to manage it. Don’t forget to be prepared for all the overhead categories.
This spring, summer and fall, we are catching up on some major projects that have been deferred for years.
Installation of a 20X24 pole barn. (Quotes ranged from $15K to $30K). (6 men, ~5 days)
Running electric to pole barn. (Quotes ranged from $3K to $6K) (2 men, 1 day)
Removal of a large 3 foot diameter 100' tree (Quotes ranged from $6K to $8K) (3 men, 2 days)
After getting numerous quotes for these projects, it's obvious to me that I've been in the wrong business. These particular projects were a bit beyond what I would tackle myself. But it's hard to justify $4000 a day for a contractor to do this work.
What's your recent experience?
I tend to agree that the tree money is a lot... but I can't even get a tree guy to call me back, so folks must me paying it. But the barn and electric don't look out of order with the cost of materials today.
That said, if part of a contractor's basic pricing formula 5 years ago was to mark up material 100%, I think that needs some correction today... because that can get crazy high real quick.
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