New CH system quotation

[Percy84]

Hello guys. New member to the forum. I'm a gas safe registered engineer and just set up working for myself after always being employed. I'm just looking for advice from you guys in regards to quoting for jobs as I've never really had to deal with pricing large jobs. I've done a fair few small jobs and straight forward boiler swaps but I've been asked by a customer to quote for a complete install where there is no existing boiler only a cylinder and emersion. The customer wants a 30kw combi with 8 rads over three floors with all pipework included. It'll be the first complete system I've done by myself and I'm really struggling to price the job. So I was just wondering how you guys go about estimating for materials and labour and pricing accordingly. Sorry if it's a long winded post and I appreciate any advise or criticism. Thanks in advance.

 

[Keefy]

First of all your post is not long winded; it's actually short and straight to the point which is the best way to get replies here in the forums.

Figuring out how to price and what to charge when first starting out on your own is always a headache - and will continue to be for many months to come. I personally don't carry out gas work these days, only general plumbing, so I'll just direct you to the Gas Safe Registered Plumbers Only forum which is where you're likely to get a better insight into how GSR's like yourself work these jobs out.

Welcome to the forums and good luck!

 

[leelister6]

Boiler, flue, clock, filter etc and add 5%
Work out material costs and add 25%
Work out how long it will take to do the job and multiply by your daily rate then add a day for phuq up factor
If they say its a bit high, offer to knock £100/200 off for cash
Try to get material cost when you've got boiler and materials and give them a receipt then if you get goosed, it's only labour costs
Also, some merchants do installation packs with boiler, rads, valves etc which can save you a decent wedge but price seperately from a brochure so you can show customer where their money is going
If customer wants to get everything from tinternet, beware. I use this to show them the pros and cons;

 

[Percy84]

Boiler, flue, clock, filter etc and add 5%
Work out material costs and add 25%
Work out how long it will take to do the job and multiply by your daily rate then add a day for phuq up factor
If they say its a bit high, offer to knock £100/200 off for cash
Try to get material cost when you've got boiler and materials and give them a receipt then if you get goosed, it's only labour costs
Also, some merchants do installation packs with boiler, rads, valves etc which can save you a decent wedge but price seperately from a brochure so you can show customer where their money is going
If customer wants to get everything from tinternet, beware. I use this to show them the pros and cons;

Thanks for the reply. I'd already had the idea in my head about adding a certain percentage just for anything that is unforseen once I've already quoted. And that chart is a really good idea and I hope you don't mind me using it for future reference with customers. I've had customers supply their own products and materials and it just becomes a pain when you find yourself turning up to do a job with the wrong parts supplied. People don't seem to understand the knock on effect this has on how long it's goin to take and how it affects other work you have booked in.

 

[Percy84]

First of all your post is not long winded; it's actually short and straight to the point which is the best way to get replies here in the forums.

Figuring out how to price and what to charge when first starting out on your own is always a headache - and will continue to be for many months to come. I personally don't carry out gas work these days, only general plumbing, so I'll just direct you to the Gas Safe Registered Plumbers Only forum which is where you're likely to get a better insight into how GSR's like yourself work these jobs out.

Welcome to the forums and good luck!

Thanks a lot, it's reassuring to know that other people find it just as difficult. It has been a bit harder than I imagined it to be to be honest. I kind of started with nothing after the company I worked for shut down for the owners personal reasons. So unlike a lot of others it wasn't a conscious decision to save funds and go self employed. I've basically started from scratch with no customers. Just have to keep telling myself that it'll all come together in the end, not so easy with the other half not seeing a great deal of money coming in at the moment. Ha.

 

[jtsplumbing]

Thanks for the reply. I'd already had the idea in my head about adding a certain percentage just for anything that is unforseen once I've already quoted. And that chart is a really good idea and I hope you don't mind me using it for future reference with customers. I've had customers supply their own products and materials and it just becomes a pain when you find yourself turning up to do a job with the wrong parts supplied. People don't seem to understand the knock on effect this has on how long it's goin to take and how it affects other work you have booked in.

When customer wants to supply the parts make sure that you tell them that any time lost or wasted due to faulty or incorrect parts supplied by them will be chargeable, or you will waste HRS RUNNING AROUND , and you don't get paid for there mistakes, bad enough when you make a balls up (and we all do) but its there mistake so its down to them to sort it out, give them advise by all means but let them sort it out !! If a customer wants to supply parts all that comes of van is the tool box, Don't for get to add on an amount for sundries you will be surprised how much these can add up.

 

[oz-plumber]

This is the formula I was told umpteen years ago by the guy I did my apprenticeship with. I worked with / for him for about 10 years, and helped him out on occasions for the next 10 years.

He knew I was wanting to go out on my own and helped me through going through the process of quoting.

This is what he told me and I have stuck to it.
I employ people now and still use the same formula.


Labour Rates: Add 50% to the wage you are paid.
( If you employ someone add 50% to their gross wage)

Materials: Work out material costs, including consumables ( screws, clips, solder )

Total: Add those figures together.

Profit Margin: Add ( at least ) 20% to that figure & then add tax.
( Most people that employ office staff and so on, add at least 30% )

Hope this assists.

 

[Percy84]

This is the formula I was told umpteen years ago by the guy I did my apprenticeship with. I worked with / for him for about 10 years, and helped him out on occasions for the next 10 years.

He knew I was wanting to go out on my own and helped me through going through the process of quoting.

This is what he told me and I have stuck to it.
I employ people now and still use the same formula.


Labour Rates: Add 50% to the wage you are paid.
( If you employ someone add 50% to their gross wage)

Materials: Work out material costs, including consumables ( screws, clips, solder )

Total: Add those figures together.

Profit Margin: Add ( at least ) 20% to that figure & then add tax.
( Most people that employ office staff and so on, add at least 30% )

Hope this assists.

Thanks for that. Wish I would of taken more notice to pricing but at the time it was something I couldn't be bothered getting involved with as I was only taking a wage. I've been thinking a lot about adding a certain percentage to jobs just in case of anything that could be unforseen just didn't have a clue about how much.

 

[jtsplumbing]

Thanks for that. Wish I would of taken more notice to pricing but at the time it was something I couldn't be bothered getting involved with as I was only taking a wage. I've been thinking a lot about adding a certain percentage to jobs just in case of anything that could be unforseen just didn't have a clue about how much.

Its very difficult to know what to add on as a % mark-up when starting out, as its to easy to overprice (or under price) a job when you first start out, do you have any mates doing the same sort of thing ? try and find out what other local one man bands are charging, depending on your location you could have quite a lot of competitors out there.

 

[Harvest Fields]

I just knock a little off the price that they would have paid retail. Then if they question it I send them to my suppliers to price it themselves so they know that they are not paying retail. Everyone's a winner. You have to judge it though as sometimes on bigger jobs this does not keep me competitive. So I only put 10% on

 

[AdamC]

Great thread, my contribution would be if you have an iPad get an app called joist. It's very good for building quotes with items you can add and reuse and also email the customer the quote and invoice when you complete the job.
I always used to get 50% of the job on delivery of materials so if you do get knocked you only lose Labour. Balance on completion no 28 days waiting then register the boiler on completion.
Good luck it's a tough world out there.

 

[Gerry]

Hey Guys and girls first time poster so thought I'd post a short reply when I done my apprenticeship our college lecturer told us ALWAYS have it written at bottom of quote that all materials are installers property until all of job was paid for that way it enabled you to legally retrieve materials from customers property in event of non payment and we have all heard of people being stung for cash. Good luck