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Time and Materials:
Time and materials work
is billed out for work completed on your project. It is generally used
in our small projects division. Drive time to and from the job is not
billed to the client and is figured into the overhead cost. Drive time
to pick up materials for your project will be billed. The hourly rate
is $95.00 with a two hour minimum of $190.00. Any materials used on
your project will be billed at the same time.
Cost
Plus Philosophy:
Our role is to offer
options to our clients—to educate them about the quality levels and
associated prices that are available.
We use the Cost Plus method of pricing--a growing trend in the
industry--charging our costs plus a markup. Materials, subcontracts,
and our labor billing rates are marked up a percentage to cover
overhead and profit.
- Overhead costs are day
to day business expenses which are not directly attributable to
particular jobs. Overhead includes, insurance, office expenses, rent,
utilities, vehicles and other cost of business items.
- Profit is determined
before taxes and company reinvestment expense.
All invoices and timecards are available for inspection--all our cards
are on the table. This allows us to share the decisions on materials
and subcontractors with our clients--for us to work together as a team.
Cost Plus is used on our
projects over $5,000. All proposals from the subs and suppliers are
made available to the client. All pricing is based on our cost; in
house labor, sub contractors and suppliers. We then apply a 30% mark up
to those costs to cover our overhead (22%) and an 8% profit. The in
house labor is broken down as follows:
$55.00 per hour for
Laborers
$60.00 per hour for Carpenters
$65.00 per hour for a Certified Lead Carpenter
$60.00 per hour for Office Managers time spent on Billing/Invoicing and
time/material tracking
$75.00 per hour for a Production Manager time spent on material
specification, product research, client/production meetings and
permitting information.
$85.00 per hour for Owner/Designer
The cost plus billing
system is spelled out in detail in our cost plus contract. For a copy
of the full contract please contact our office via email, fax or phone.
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