Estimating Handyman Work

 
The model we have adopted for the handyman business is the automobile repair business. There are two companies producing price lists for the automobile repair business who have established unit costs for every different automobile repair or part replacement option. When someone brings a car into be serviced, and wants an estimate before the work is done, the mechanic looks at the job and provides the breakdown of all the different items using the published price list of one of these companies.

This is the way the handyman business will work. A database/ price list, similar to the one developed by HomeTech Information Systems, will allow the administrative staff to quote prices over the phone for standard elements, and the individual handyman to price a job at a customer's house. The only difference is the need to add judgement factors where normal conditions do not exist, and change the price accordingly.

Where possible, unit costs should not be itemized. For obvious reasons, it is far better the customer not see the materials and labor cost and what the markup is. One handyman company that broke out materials and labor for such things as windows. A customer had looked at the previous week's newspaper, knew they could buy that window much cheaper, and wanted to pick it up while the handyman company only did the labor. The handyman was in a bind and forced to work for labor only, and did not make a profit on the job.

Any published price list will not be complete for every single item. As the business continues, each new item developed has a unit cost established and included as an addendum to the published list. It is also necessary to develop unit costs with subcontractors so these can be quoted over the phone, again based on normal circumstances.

Here are some conditions to be considered when a unit price is not available or normal circumstances do not prevail:

1. Unusual cost of material pick up and delivery.

2. Cost of material storage, such as a condominium unit on the 12th floor or a townhouse with no available on-site storage.

3. Unusual time requirements such as a deadline or work done after hours or on weekends.

4. Unusual demands for cleanliness and neatness in existing house.

5. Unusual matching problems with molding, locks, windows or whatever that require the handyman to locate products.

6. If it is impossible to park within a normal walking distance or without getting a ticket this should be added.

7. Emergency work, when everything else has to be dropped to satisfy a customer's demand for urgency.


Basic Principles of Handyman Estimating

1. Decide on exact specifications and write them up.

2. Quantify every step.

3. Use a pre-determined unit cost/price system to derive a total cost/price for every item to be performed.

4. Where a unit price is not available, determine the material cost and estimate labor as accurately as possible.

5. Use the unit cost/price system to derive a total cost/price for every subcontract item.

6. Where a unit price is not available on subcontract work, contact or have the office contact the appropriate subcontractor or supplier to provide the necessary information.

7. Wherever a final decision on a specification has not been made, or the materials have not been priced on a special item, delete the item from your bid or use an allowance figure based on contractor's cost.

8. Review the project and make a judgement on all unusual job conditions, including at least the following:

Access to the work location

Geographical factors including travel, parking, jurisdictional licensing requirements

Time requirements for starting and/or completion

Handyman's familiarity with the type of job and/or materials

Customer requirements including standards of performance, talkativeness, neatness expectations, other idiosyncrasies

Availability of subcontractors, materials, special order items

Convert your judgement into a quantitative adjustment to the job cost.

9. Mark up the job cost to determine the price, based on your company's net profit goals and overhead requirements.

10. Refine the specifications wherever the estimating process showed that a change was needed.

11. Write up the final specifications or contract.

12. Submit the bid to customer in proper form, being sure to include:

Payment schedule

Approximate starting and completion dates

Contractor's license number

Conduct a mini pre-construction conference to make sure the customer understands what is to be done and what is not to be done under the contract. Carefully explain any time requirements in collecting material, locating matching items such as trim, etc.

Other qualifications or requirements

13. Only itemize totals for each item of work. Do not separate labor and materials if possible.


Establishing Unit Costs and Prices


Developing a Product List

Let's talk about individual products that can be offered by a handyman service.

Appliance repairs. This is a service you should move into slowly. Most manufacturers have their own authorized service organizations. As your company grows, if you see an opportunity you can develop an appliance repair service, become a factory authorized dealer, and gain a share of the market. Unless your customers want you to handle all their work and insist that you include appliance repair, don't do it. You should at least make inquiries to service companies to see if your marketing and advertising efforts will be enough to give you a profit on this type of work.

Glass replacement of all types. This represents a tremendous opportunity in many areas. There are companies that have reached the $2-3 million level just by doing glass replacement, window repair and the like. Many hardware stores already offer this service, even so it is a market that should be in almost every handyman service. You can differentiate your service by handling replacement or repair of insulated glass windows. This may require your developing contacts with different manufacturers, but it will pay off.

Locks, repair and replacement and installation. Anyone who purchases a new house or moves, is usually anxious to get locks installed. You should have a complete line of decorative locks as well, and arrange with manufacturers to sell specific product lines.

Doors (repair and replacement, weatherstrip, cutoff, steel entry doors, storm doors, closet doors, mirror doors, etc.). This is a substantial part of a carpentry-oriented handyman business. It's a wonderful item to push when you are on the job for something else. People always need doors planed when they install carpeting, and this leads into the installation of new doors.

Other hardware. If you have a product presentation book that shows fancy door knockers, mail slots, mailboxes, kitchen cabinet hardware, hinges, and so on, a tremendous profit can be made in these items.

Fans. Fans of all types, attic, exhaust, kitchen, bath, etc., are hardly saleable by suppliers unless they at least offer referral service for installation. The work requires a combination of carpentry and electrical, but usually can be done by one person.

Bath accessories. Shower doors, vanities, medicine cabinets, towel bars, mirrors, are all part of a handyman service. It is important to show the product in a brochure or catalog.

Tile (installation/repair/replacement, ceramic floor and ceiling, grout and caulking). One of the hardest trades to find is ceramic tile repair, though it can be learned by any competent carpenter or craftsman. Because of the scarcity of craftsmen it is also usually very profitable.

Countertops. People often want a refurbished kitchen at a very low cost. The best way to accomplish that is to change the countertops. You should do laminate and Corian as well as tile, and install new sinks and backsplashes at the same time.

Lighting fixtures. Install, repair, and replace everything from chandeliers to recessed fixtures to dimmers, and outside lights.

General electrical. Install heavyups, 200 amp services, outlets, GFI plugs, 220 lines for air conditioners or ranges and dryers, etc. You will need to work with an electrician who will give you wholesale prices on labor so you can mark up and make your profit.

Plumbing. Fix leaks, repair/replace faucets, commodes, laundry tubs. Install plumbing for washers and dryers, gas appliances, kitchen appliances, hot water heaters, wax seals for commodes, shower fixtures, new lead pans. If you have a good plumber that will give you good service, this again can be a major part of your business. Plumbers are not good at merchandising and selling and having this as part of your array of products will be helpful.

HVAC. Humidifiers, thermostats, electrostatic air cleaners, air conditioners, circulating pumps, all types of controls, furnaces, boilers, electric heat, room air conditioners, heat pumps. You need to find someone that you can sub that to on a wholesale price basis.

Roofs. Complete roofs, porch roofs, roof repairs, patches, gutters and downspouts, skylights, ventilation, flashing. Roof repair will often lead into complete roof replacement which can easily be subcontracted.

Closets. Doors, enlarge interiors, lighting, storage areas in garages and basements. This special market requires expertise in selling but it is very profitable.

Siding. Patch, replace, repair, wood, vinyl aluminum, Masonite. Perhaps improve ventilation. This is mostly carpentry and should be part of your bag of tricks.

Masonry. Fireplaces, flue cleaning, fireplace doors, tuck pointing, realigning or damper installation, pre-fabricated fireplace installation. Masons are hard to find and if you can find a good one who can do this, it should be included.

Flooring. Refinish, repair, replace, clean and wax. It is hard for people to find craftsmen who will refinish floors, clean and wax them, patch them, replace rotted subflooring and so on.

Windows. Repair, caulk, weatherstrip, replace. Install storm windows, screens, bows, bays, etc. Everything to do with windows including the replacement of windows in the whole house can be part of a handyman product line.

Wallpaper. Installation and repair.

Drywall and plaster. Install, patch, repair and replace, patch plaster and drywall, install drywall ceilings over existing plaster. First you may need to use plasterers, but them your people can learn how to do it and it will be very profitable.

Garage doors. Install, repair, replace, add door openers. There are many garage door companies who specialize in this and you may want to use them rather than train your people to do it.

Insulation. Install, replace, and include other energy conservation devices. This is an easy one-trade service to subcontract.

House management. Alarm systems, intercoms, thermostats, controls, will become a major handyman item in the 1990s.

Driveways. Patch, seal and extend.

Kitchens. Repair and replace doors, plumbing, electrical, appliances, floors, hardware, and even door re-facing if you find the proper tradesmen.

Structural. Build porches, repair rotted termite eaten joists, water damage, rotted wood. There is a whole market of structural repair that is very profitable.

Miscellaneous. Attic stairways, storage sheds, swing sets. Anything that is sold at the lumberyard that has to be installed is a prospect.

As in remodeling, a company must specialize in products and systems in every category. Decide on the products they are going to sell, pre-select the best products, develop pricing database and specifications, cultivate sources of supply and stock what you are selling a number of them they can be carried on the truck.

Develop a product presentation book that the handymen carry with them at all times. If they are on the job and the customer expresses an interest in installing an attic fan, they should be able to pull out the presentation book and show the picture of the fan, the specifications and on the other side of the page show the price installed.

The key is to make it easy for the handyman to sell products in the home and to assure the customer you are set up to handle those products. You know all their features and benefits and they are an integral part of your service.


Items for the Database

List for Handyman Database


ELECTRICAL

1. Installing 200 amp service with circuit breakers.

2. Installing 150 amp with circuit breakers.

3. Installing 100 amp with circuit breakers.

4. Installing 60 amp with circuit breakers in apartment or condominium.

5. Installing additional four and eight circuit, circuit breaker box off of existing 100, 150 or 200 amp service.

6. Installing ground line to exterior with ground pole.

7. Installing ground to cooper or galvanized water line in house.

8. Replacing breakers 115 volt/220 volt.

9. Installing copalum which corrects aluminum wiring deficiencies, per outlet.

10. Install outlet on existing circuit. New/old work.

11. Run single home run #12 wire for kitchen appliances.

12. Run 220 line for air conditioning, first, second, third floors, open or fished, masonry and drywall and plaster.

13. Install GFI plug in bathroom on existing outlet.

14. Install separate GFI circuit with breaker in box for one, two, three outlets.

15. Run 220 line for dryer.

16. Change dryer or electric range from being hardwired to 220 outlet with plug.

17. Install dimmer switch on existing outlet.

18. Install recessed fixtures of different types including electrical only (cutting hole and patching plaster alternate).

19. Run all weather plugs outside within 20 feet/beyond 20 feet.

20. Install spotlights on house, one, two story. Two spotlights with two switches; two spotlights with one switch; three spotlights with two switches/one switch.

21. Run line from house to garage within 30 feet overhead with exterior rated wire with switch in house and in garage.

22. Dig trench to put wire underground, 18 inches below grade, per foot with switch in house and garage.

23. Run line for four circuit breaker box in garage with switch at house and in garage.

24. Run #12 wire circuits in garage for power tools.

25. Run #12 wire circuits in garage 60 amp box, 220.

26. Replace existing fluorescent light with four foot fluorescent fixture, two and four tube.

27. Install exhaust fan in bathroom with/without heat lamp, electric only.

28. Install attic fan in attic on thermostats.

29. Install through the wall fan in ceiling of upstairs hallway. If necessary cut larger vent in roof.

30. Complete price list on smart house, low voltage wiring.

31. Run line for computer with necessary protection.

32. Run electric heat four, six, eight foot, with built in thermostats/wall thermostats.

33. Run wire and prices for all different kitchen appliances, disposals, dishwashers, hood and fan, refrigerator, trash compactor, etc.

34. Replace knob and tube wiring in house, per outlet, etc.

35. Install exterior lamp by driveway including digging of line to location with switch in house; one on first floor, and one on second to same outlet. Add additional lamp, additional footage over 20 feet.


INSTALLATION ONLY ITEMS

1. Swing sets; all sizes, labor and material.

2. Assemble and install storage shed; four sizes, metal/wood.

3. Assemble dog house.

4. Basketball goal. On garage roof, with pole, dig hole, install pole.

5. TV antenna, one, two, story. Asphalt, cedar, slate roofs, etc.

6. Outside fire escape, materials labor.

7. Intercom, master, low voltage wiring; each station additional. Labor and materials.

8. Simple alarm system; labor and materials.

9. Install locksets, all types, deadbolt, sliding patio door Charlie bars; passage locks, in all types of doors.

10. Replace windows, all types. Steel casements, wood, vinyl, basement, skylights in new and existing openings; widen, extend openings in depth; steel lintels and beams; bow and bay windows, all sizes; decorative glass.

11. Glass, every type and size; install, replace, repair.

12. Sash windows, cords.

13. Window jambs, sills. Replace or cover with metal.

14. Storm windows and doors.

15. Rescreen porch windows with new or existing frames.


HVAC

1. Replace furnace, boiler, air conditioning unit, heat pumps, inside and outside units.

2. Change filters.

3. Replace thermostats with new type.

4. Install humidifiers, regular, two sizes; heat pump with booster.

5. Install electrostatic air cleaners.

6. Install new heat register covers.

7. Run ductwork for addition.

8. Change outlet to high low for air conditioning.

9. Run return from basement to first, second floor hall through closet.

10. Install circulating pump.

11. Install zone valves.

12. Replace flue from furnace to chimney within 10 feet; beyond 10 feet.

13. Change gas line from furnace from copper/galvanized to black iron.

14. Install new high efficiency furnaces, boilers.

15. Fireplaces - reline with super flue or Arens chimney process; reline with stainless steel; rebuilt firebox complete with damper; install roof damper; fire doors; open up fireplace to opposite side; install doors on each side. Open up and install terra cotta linings, one/two floors. Install pre-fab fireplace, one/two floors - give type of flue and brand; box in one/two floors. Install wood insert stove in existing fireplace, type, labor and materials. Clean fireplaces.

16. Stairways - Replace pickets; newel post; treads and risers, oak; stringers; rebuild basement stairway; rebuild first to second floors. Install disappearing stairway. Install regular stairway from first to second floor or second to attic.

17. Install handicapped elevator on stairway, one flight with and without turn, labor and materials.

18. Change Bilco door on exterior entrance. Price out cutting door in basement and putting in masonry walls, concrete steps and Bilco door.

19. Cost of digging drywell at bottom of basement stairs.


CLOSETS

1. Walk in.

2. Regular

3. Run switch and light to existing circuit.

4. Run switch and light on new circuit.

5. Run switch and light with automatic contact when door opens light goes on.

6. Replace doors in existing opening; 2'6", 3'0", 4'0", etc.

7. Replace flush doors with raised wood or Masonite; Masonite has a new whole craftsmen's line.

8. Deepen closet; build out 6-12 inches with drywall and install door openings. Widen doorway from 3 foot to 6-8 foot and install doors. Patch floor where doorway opened.

9. Every variety that Clairson has.

10. Storage for garage.

11. Install kitchen cabinets in garage - labor.


DRYWALL AND PLASTER

1. Install and patch wood lath, rock lath, wire lath; drywall, firecode drywall in ceilings, walls every option.

2. Install new drywall ceilings; over wood lath and plaster; take down existing wood lath and plaster and installing new ceilings.

3. Skim coating with swirl coat drywall and plaster including wood lath.

4. Complete bathroom with greenboard.

5. Take down tile and put up wonderboard and equal; replace tile.

6. Patching floor; take up tile; replace plywood and retile.

7. Cut access panel for plumbing.


OTHER

1. Replace beaverboard with drywall in attics.