Remodeling for General Contractors
General Contractors are a huge part of any home project. They specialize in various trades. When you are remodeling your bathroom it is often general contractors who lay the titles and put on the fixtures. The general contractors license requirements vary by states. For example in Alabama all you need is to be over 18 and pass a 16 hour course.Efficiency is how customers and contractors stay happy. Less time wasted is less money wasted. General Contractors benefit from efficiency as they are both need technical skills and management skills. This means learning general trade skills like glass installation and being able to understand people and give them what they want. Here are 3 ways General Contractors can save money and improve their service when remodeling.
General Contractor Costs
Customers don’t like price increases. Sure a part costs $25 and half a hour to install for a total service fee of $150-170. The technician is paid 40-50 a hour for their specialized labor. Loaded labor is all costs attributed to that technician. Health insurance, 5% full match 401K, workers comp insurance, auto insurance, training, etc. Then that worker is driving on average 15 minutes between calls each day. Gas prices and fuel efficiency affects the speed of jobs. You also make sure your trucks are fully stocked so that we can get you back up and going right away. Equipment and Inventory for trade professionals isn’t cheap. The average service van has about $30,000 in parts on it. And finally as a self employed/business owner you must hold 15% of profits for the sustained growth of your business. Waste materials are a part of expenses. As a general contractor you can reduce your costs by keeping a fully stocked truck and building relationships with nationwide suppliers. For all your tools keep up proper tool maintenance. Every time you use a tool brush and vacuum the dust off. Follow the protocol detailed in the tool manual.
Understand the customer
Customers pay attention to quotes. Remodeling is one of the biggest expenses incurred by homeowners . For consumers, being informed and having an idea of what is happening helps their customer experience. Some customers are frustrated by any lack of communication. They went out of their way to learn how to repair or model on their own. For an example a customer learned to do AC repair to change a capacitor. Normally costs $ 5 but since he wasn’t a contractor he had to pay more. As a general contractor you are paid not only for your labor but for your knowledge. Explaining more to the customer improves your chances of getting referrals and builds relationships.
Remodeling costs are a percentage cost of the property. For example a house worth $220,000 with 4 bedroom rooms 2 bathrooms kitchen ,living room and bathroom has 9 rooms in total. The value of each room is $220,000 divided by 9 which is $24,444. The cost to remodel a room should not go over $24,444. This is just a frame work for quotes. Kitchen and bathrooms will always be high ticket remodeling jobs due to the plumbing,electrical wiring and the home systems in those rooms. The way to save money as a general contractor for remodeling is only let more senior or experience contractors to handle the job. Inexperienced general contractor may improperly install a unit. This will extend the time needed to complete the job and the customer will doubt your credibility. Integrity and honesty is important in this industry. They are some contractors who cut corners to make a quick buck. However karma catches up in the long run.