Commercial construction pricing in the USA operates by different rules than residential. Estimating is more rigorous, payment is slower, and the margin structure is different. Here’s how to price commercial work correctly. Commercial Construction Estimating Methods Unit price estimating: Price per measurable unit (per SF of framing, per LF of pipe, per opening). Fast for…
It’s harder than most people expect, and easier than most people fear. The trades knowledge is the easy part. The business is where most people struggle. The Real Challenges Cash flow. Construction is notorious for slow payment. You pay workers and material suppliers now; GCs and property owners pay you in 30-60 days. Without working…
Day rate Job margin Job pricing Target annual take-home ($) Working weeks/year Billable days (%) Self-employment tax (%) Monthly overheads ($) Min day rate — Recommended — Hourly rate — Invoice amount ($) Materials cost ($) Labour hours Your day rate ($) Total cost — Gross profit — Margin % — Estimated hours Hourly rate…
Consistent HVAC work comes from building recurring revenue (maintenance contracts) and being findable when equipment fails. Here’s the two-track approach. Track 1: Maintenance Contracts (Recurring Revenue) Sell annual maintenance agreements to every customer who will have you. Pitch it at the end of every service call: “We offer a maintenance plan – two seasonal tune-ups…
Pricing solar jobs correctly is the difference between a profitable installation business and one that stays busy but never builds capital. Solar pricing is more complex than most trades – you’re selling a system, not just labour and materials, and the variables (roof orientation, shading, grid connection, scaffold requirements) have a significant effect on your…