Square foot differences

[Allen Brown]

Milo, You and I are talking about two different things here. I am strictly talking about new construction. I do not charge by the foot for remodel, as that would rarely work. On new construction it works very well for me, and at $1/ft., I generally make between $90-$120/hour.

I rarely charge my customers by the hour, as an open-ended contract is not good for the customer. It may work for you, but my method works for me & my customers.

[lbuttery]

I charge by the hour for most projects

I collect a 4 - 8 hr retainer and as I work that off
I provide status and pics as needed to show progress

when the retainer approaches $0, I collect another retainer

if possible, I'll try to give the client a ballpark range
but emphasize that it may vary higher/lower

I also explain that if I were to give a flat rate I would have to
estimate high to cover contingencies and that change-orders would be extra $

there are many ways to do it but I have never done it by sqft

I do calculate the $1/sqft just to guide the possible flat-rate

Lew

[Milo]

Allen,
I'm talking about new and remodel - Remodels definitely are harder to quantify, but new has the exact same characteristics without the pre-existing structure constraints.

I don't have an open-ended contract either - I let the client know that the cost of design services (Design resolution, engineering, specifying, con docs) will be between 3%-6% of the construction costs. I have derived this range from my historical cost tracking as I'm a design / build firm.

I would not say that $/SF pricing doesn't work for some companies, it just limits the level of service you can provide if you want to compete with other $/SF companies in your area and still make a living wage.

[perryh]

My SF prices are the same for new or remodel. You just need to know what to charge and what extra things need to be done. I have additional SF prices for things like sloping lots, highly detailed plans ( plans for permit alone vs. completely detailed). Clients get 2 prelims, after that, it's an extra charge. I'm covered either way. By the way, I can finish the job very fast and make more money, can't do that using the hourly method, unless you cheat. I would never charge by the hour, you limit yourself too much. Also everyone knows up front what the fee's are so you never have any problems with what you charge, Contractors and homeowners love that.

[Alex_GHomes]

I charge for both floors including the stairwell. I don't charge for the garage as it is a simple design usually.