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Why I was bidding contracting jobs wrong for 6 years
I used to just guess on material costs and add a flat 20% markup. Then last month I bid a deck job in Raleigh where the lumber prices jumped 15% between my quote and the client signing. That $4,000 quote turned into a $600 loss quick. A guy at the supply yard showed me I should be using current price lists and adding a 10% buffer for swings. Now I update my bids every week based on real numbers. Has anyone else been burned by material price jumps mid project?
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aaron6771mo ago
Man, I had a buddy who lost two grand on a fence job when steel prices spiked overnight right after he locked in his bid.
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gray_schmidt81mo ago
Honestly, that steel spike thing is brutal. I had the same issue with lumber a few years back, and what saved me was putting a 30 day price escalation clause right in my bid. It just says if materials go up more than 5%, the customer covers the difference, and most people are cool with it when you explain why.
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