Van Cockriel says...
Average cost / 3 = materials cost only in general practice.
This was taught me, some 45 yrs. ago and seems to hold true today. The scope and size of contract when going the other way, as in pricing, "what to charge a customer" from a contractors point of view has a bearing on stipulated price, that in turn contains both material and labour. They seem to charge (material cost X 3.33 = contract price)on average. Maybe this is "Murphy"s Law" allowance
You can check it out simply by taking a set of drawings into "Big Box Store" for material take-off and pricing, Then take the same drawings to 3 contractors for Estimates, Subtract material cost from Estimates, average your results divide by material cost and see how close to "TWO" the result is, closer to "TWO" the better!
In residential construction I always say spend more on the materials and less on labour...
Posted on June 25, 2011
I am curious if There Is a Way to Figure How Much It Would Be to Build a Home Without the sight labor.Every I search Show the national average cost for home building to throw THEY In The National Labor wage. How do I figure it out?