Mike,

The distance adds another dimension to the job. If the job is 3 hours away then you need to build in hotel expenses, per diem for you technicians. When I put my guys on the road I figure my cost to do the job then I use prriceline to book my hotel rooms and give my guys $25 per day diem. For meal etc. then add the number of days to my base price for the total price to the customer. I usually figure hotel a little higher then the average priceline name your price says it the average price.

 

I agree with you 100% when you do not have the man power large job can kill your future business, I always warn everyone that large job are nice, but if you cannot at least keep one man in your normal area working you daily jobs you  will lose some of your market share to the competition.

 

If you can send one trained technician to that big job hire some local guys this could work depending upon the work force you can hire. This job is fairly straight forward and to train up some help would be fairly easy. The question  is do you have that 1 guy you can put on the job that you can trust to ramrod the job to completion on time and on budget, and can train up some new technicians. If you have that guy that would solve part of your problem,  without that key guy , I would say walk from this one, don’t give up your local business for this one time big hit, on the long haul you will lose.

 

Let me know if I can give you any other advise.

 

 

John E. Freitag

President/Director

The Stone and Tile School

Office 407-567-7652

Cell 407-615-0134

jfreitag@thestoneandtileschool.com

 

 

www.thestoneandtileschool.com

 

 

 

 

Wow, thanks John! That is a great analysis.

 

The main problem I have is that I am so new here I have not been busy enough to train a worker, let alone 2-3.  The job is also 3 hours from home, and they may also require night work. Throwing out that price ($10sf) might be a visceral response to dealing will all these difficult issues, more than an actual reasonable bid.

 

I will do some more digging, see what labor resources I can get together in that area, then see if it is worth it.  Problem with doing big jobs as a small company, is that is sucks all your time and the day to day, bread-and-butter work (referral base) gets neglected, and that string of the business suffers. You will get known, and a client/referral base, based on the work you can do, large jobs or small.

 

It is a difficult transition to make and I appreciate any ideas in doing so.

 

 

Mike ,

 

I agree with Fred , $10 sq ft is high, however what is the going rate for restoration in your market, while this seem high to us it might be in the ball park based upon your market place.

 

If I was to do this job based upon your comments the 20,000 sq is like doing a lot of 60 sq ft section I would break the pricing down that way. If your needed to do a 220, 400, 800 and a polished a 60 sq ft section it should not take your technician  more than 2.5 to 3 hours and that figuring a 65% productively rate, this means  39 minutes out of every hour your technician is working on the floor. My experience tells me that this is normal for most technicians, once in a while you may get your productivity up to 70 % but that the best you’re going to see. If anyone gets better than that they are probably getting calls back or doing poor quality work.

 

So with all that being said the main part can be honed and polished in let’s say 3 hours.

 

Is the mosaics polished? They appear to be.  Can you when honing get close enough to the mosaics that you would not need to hand hone? How much damage is in the floor?   From the pictures there does not seem to be much damage and if you can feather into the mosaics with your floor machine then you should have very little hand work.

 

Even if you had 2 hours of hand work you would have 5 hour per section. This means you could get 1 ½ section completed per day or approximately 90 sq ft per day. Can you put a technician on a job for $500 per day. If so this brings the price down to approximately $5.50 sq.  if you have   200 section of 60 sq @ $500 per day job is worth $100,000.

 

I think once you get started you would probably get more done than the 90 sq per day.

 

If you can feather into the mosaics and do very little hand work you can probably get more completed each day.

 

This is based upon doing 3 hones and a polish if you can get the job done with 2 hones and a polish your productivity will increase.

Have you completed a test?? A project this large I would recommend you do a test and see how long it take to complete the job.

 

I think based upon the size of this jobs and the contractors you have in your market, this job will be won by the bidder in the that can put 2 to 4 men on the job and generate $350 per day per man which would generate daily sales of $700 to $1400 per day based upon the number of men on the jobsite.

 

If you completed 90 sq a day this job would take approximately 222 man day to complete. Of you had 4 men on the job you would complete the job in 55 days  if I could sell this job and keep  4 guys busy for 55 day @$1400 per day

That would equal $77,000 in sales

 

If I paid my technician $17.00 per hour X 8 hour per day =$136 X 4 men = $544. Per day direct labor. You material cost would an estimated $140. Per day total direct cost $684 per day.

Your gross profit per day is $716. Per day X 55 day = $39380. For 55 days , the question is will $39,380 cover you overhead and still allow you company to make a profit????

 

Hope this helps if you have any other questions, or comments , please let me know

 

 

John E. Freitag

President/Director

The Stone and Tile School

Office 407-567-7652

Cell 407-615-0134

jfreitag@thestoneandtileschool.com

 

 

www.thestoneandtileschool.com

 

  

 

 

Mike

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