Builder/QS partnership …. Its so much more than just a price
Some people think that making a successful profit on a job just comes down to the pricing done at the front end…. And although I should advocate that because often I am that pricing person, I don’t actually believe that is the case.
I can complete a BEAUTIFUL pricing exercise on a set of plans. Every nut and bolt counted and measured, labour split out line by line, good solid sub-contractor quotes, and a fabulous set of tags and clarifications. Nothing soothes the soul more for a QS!
Getting the most out of working together
To make sure the pricing exercise is as bespoke as possible, I have to rely on my builder for a few things.
I need to know;
What your labour rate is, not just what your mate down the road charges, but what YOU need to charge for YOUR team based on specific calculations that you have done to ensure everything (including down time) has been considered. (Remember Red QS has a calculator you can use to determine how much you should be charging).
What your margin should be. Again, this is not just a number that should be plucked out of thin air. Margin by definition is offsite overheads plus desired profit. Offsite overheads are all of the costs that are incurred to RUN YOUR BUSINESS. Basically, every cost that you have as a business owner that is not attributed to a specific job, think insurances, leases, vehicles, marketing, QSing, directors fees, admin, stationery…..etc. Profit is that pot of gold that you get on top of everything else that is yours, your benefit for being in business and what makes it all worthwhile.
Your team, although I can give you average labour constants against every line item so you know how much time you should be spending on every single part of a project, these are averages. If all of your carpenters have one arm, that’s probably something I need to know so I can adjust the labour constants accordingly. Similarly, its an opportunity for you to let me know about your guys who are particularly talented and fast at setting up formwork for instance so I can trim the averages a bit. It could mean the difference between winning or losing a job!
In a nutshell, your collaboration with me is absolutely key to getting a pricing document that matches your company with the job you would like to win.
From here, our collaboration has to continue…. If I’ve gone to all the effort to measure how much labour there should be throughout a job, it is your job to use that information to make sure your guys are working towards it. If I have told you a certain amount of materials is required, then check the order that arrives to make sure the merchant hasn’t sent you too much or too little. If something comes up that hasn’t been measured or priced, then charge it properly as a variation and make sure you include margins and P&Gs…..
Just think – your QS is the one person you wanna be as matchy matchy with as possible….. the more we work together collaboratively, the more money you WILL make…. Its simple maths!
Matching our service with yours
In a nutshell, your collaboration with me is absolutely key to getting a pricing document that matches your company with the job you would like to win.
From here, our collaboration has to continue…. If I’ve gone to all the effort to measure how much labour there should be throughout a job, it is your job to use that information to make sure your guys are working towards it. If I have told you a certain amount of materials is required, then check the order that arrives to make sure the merchant hasn’t sent you too much or too little. If something comes up that hasn’t been measured or priced, then charge it properly as a variation and make sure you include margins and P&Gs…..