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Home Improvement, Design, and Decorating
Reply to "Pricing Renovations"
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[quote=Anonymous]I am a General Contractor that specializes in high end residential remodels. Common in the Industry is the idea of the Iron Triangle - meaning the three constraints that oppose each other in construction - Quality, Price, and Time. The prevailing wisdom is that you can only have two. My firm is small as I manage my own work and subcontract out the work. While not perfect, my work is regarded as meticulous. I have found, mainly post COVID, that clients are very sensitive to schedule, meaning construction duration. Further, it is not uncommon for partners in a marriage to have differing views - meaning one partner may be concerned with the details, while the other is more concerned with construction time. Most of the folks in the trades understand that good work takes longer. I also price enough work and work to keep my price competitive. Most clients agree when I explain that my goal for my pricing is for my price to be less than the quality I deliver. I explain that is my view of value. Against this backdrop is the fact that tradesman are aging out of the industry and the new generation does not yet have the experience and knowledge required for good work. So this makes delivering construction on schedule even more difficult. Add in the likely scope creep on a job and more often than not we miss the schedule. So, as I think about pricing, I am starting to think that I need to raise my prices to provide the ability to apply more resources with the goal of decreasing construction time. I also realize though that means the clients and the design teams need to stay current on decisions and selections - which is not a given - so it is likely that my margins will be compressed. I came home last night and there was an Amazon truck in my driveway at 7 o’clock. My wife had ordered something the night before. I realize this is one of my challenges as clients can have this retail experience but we, in construction, cannot deliver this service. I realize this is a long post but I thought to crowd source client side thoughts on remodeling pricing. Given a typical remodel price of 750,000.00 or greater - the likely pricing differential would be 10-20 percent. Lastly, I do believe that you lose quality as you gain speed. So, overall, how much more would you be willing to spend on a whole house remodel for a larger crew that in theory can deliver on schedule or at least provide better schedule visibility ? [/quote]
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