Job Costing Marquette MI

Most estimators assume that eight hours on the jobsite are eight productive hours. With no job costing, you'll never discover how misguided that assumption is.

Local Companies

Carefree Exteriors
(906) 226-6469
965 County Road 492
Marquette, MI
Fairbanks Painting and Decorating
(906) 228-6679
2293 Norwood St
Marquette, MI
Cabinet Concepts
(906) 249-9998
2288 US Highway 41 S
Marquette, MI
Upland Contractors
(906) 249-4522
132 Ridgewood Dr
Marquette, MI
Anderson Painting & Roofing
(906) 226-6668
Marquette, MI
Banny Custom Homes
(248) 647-5450
39533 Woodward Ave
Bloomfield Hills, MI
Haan Gary Remodeling & Repair Contractor
(269) 345-3007
Kalamazoo, MI
Jarrett Roofing Inc
(616) 530-2416
4313 Clyde Park Ave SW
Grand Rapids, MI
Burke's Roofing Repairs
(734) 662-5556
Ann Arbor, MI
Home Improvements Remodeling Llc
(810) 966-1201
Port Huron, MI


There's a debate currently raging surrounding the relative merits of time and materials billing vs. fixed-price contracts.

In most respects, I think it's no contest: Fixed pricing wins hands down for lots of reasons. It holds the potential for higher margins. It provides a strong incentive to clients and remodelers alike to buy right. And it keeps clients' prying eyes away from parts of the business, like markup, that they wouldn't understand anyway.

There's a dark side to fixed-price contracts, however, and it has to do with what is perceived to be another advantage: Fixed-price contracts are easy to administrate.

What turns this advantage into a liability? Most remodelers working with fixed-price contracts pay attention to costs just long enough to price and sell the job. After that, they can apply for scheduled draws or so-called progress payments without ever taking another look at how the actual costs of construction squares with their estimate.

Paid as You Go

Unfortunately, profit depends not just on what you sell the job for but on how much you spend to produce it. T&M contracts won't solve this problem — they're too open-ended — but cost-plus contracts just might. They may be time-consuming to administrate, but so is job costing. That's why most remodelers either don't do it or wait until long after the job is over to find out whether or not they made any money.

Click here to read full article from Remodeling


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