Posts: 706
Threads: 0
Joined: Dec 2011
Thank you for the "hard truth" advice and for running with the analogy. I'll agree that I'm not ready for this endeavor yet but that's not going to stop me. We all have to start somewhere. In my defense, I'm not totally winging it and hoping for the best. I've put lots of work and thought into this project but it's my first big one so it will be a great learning experience. Yes there is overhead and profit worked into the price. Whether or not it's enough is a different question. There's no way to tell until it's all done and I have a chance to look back on shop hours and expenses to see where shook out. This also goes to CStan's point. My deposit came out to be 44% of the total quote. That does give me plenty of wiggle room for material purchase and covers some of the time I spend putting together the estimate. Between savings and my wife's income, I'm less worried about having the money to "live on" but your point is taken. I do anticipate that the remainder of the payment will be all profit. Again, we'll just have to see how it all shakes out when I'm done.
Thank you Don for the contract. I was surprised how long it was. I'm sure I can pick pieces out to help me build my own.
Posts: 7,421
Threads: 1
Joined: Sep 2005
It is always a good idea to have a clear description of the work to be performed.
A simple sketch showing all the components is useful.
Also list whether the job includes all materials, delivery, installation, and finishing (painting). What the guarantee is, etc.
From my observation most contractors get in trouble because they had one idea of what the job entailed and the customer had another idea of it.
Also note on that form that any changes requested after the job has been accepted may result in up-charges.
I recently had a handyman quote to paint the outside of my house (gables, shutters, trim) the balance is brick.
I requested that he make sketches of the elevations and use a highlighter to indicate what items would be painted.
This revealed that he did not intend to paint the shutters or window boxes. So he had to re-quote.
If I had not requested the sketches we would have been in conflict at the end of the job.
No animals were injured or killed in the production of this post.
Posts: 917
Threads: 0
Joined: Sep 2008
Hopefully you have the experience to bid correctly. If you are always the highest bidder you will be out of businees with no work. As stated above if you are always the lowest bidder you will also be out of business with no profit. In my opinion all initial downpayments should at a MINIMUM cover all materials and overhead. Also as stated above make sure you and the customer completely are in agreement on the scope of the project and have an appropriate contract for the state where you live. Remember if you ever have to go to court to collect you are automatically at a disadvantage. Most courts will consider you as the expert and should have anticipated any problems. The homeowners are considered as inexperiencd in this and that works in their favor.
Posts: 1,674
Threads: 0
Joined: Feb 2003
(10-25-2021, 10:25 AM)mr_skittl Wrote: Thank you Don for the contract. I was surprised how long it was. I'm sure I can pick pieces out to help me build my own.
Yeah – it may seem a bit much for a custom furniture/cabinet project, but it covers all the essentials. You could probably eliminate some of the general boilerplate provisions. You’ll notice it does not include a warranty provision and that is the reason for the inspection provisions. It is not quite an “AS-IS sale, but sort of a hybrid. The way this is written, once the project is delivered, inspected and corrected, if needed, basically you are out of it. This may not appeal to some Buyers so you would need to think about whether or not you want to include a warranty.
I think the important sections are the project description (with a sketch) , pricing (including deposit) and delivery terms. Of course, feel free to edit as you see fit.
