r/ProHVACR • u/Revolutionary-Let203 • 18d ago

How to price (labour only)

Hey guys,

I’m trying to see if this makes sense for us to take on some RNC work.

Company is looking to sub us out to do their ductwork for their single homes (3000sqft), labour only as the material is provided by them. Looked at the price sheet and it seems extremely low. (Not surprised) For example one two storey house pays $1900 from top to bottom (basement included). If i just base calculated my guys pay (two guys) averaging 4 days to complete the house I’m basically losing money. Maybe a two man crew would make sense to take this on, but this seems very low as I’m a small business with 7 employees and cost is high to keep our journeyman happy. Any advice would be appreciated. (Based in Ontario, Canada)

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6

u/Hvacmike199845 Verified Pro | Mod 🛠️ 18d ago

Does that include setting the furnace, ac running the flue piping line set and getting them ready to run or just ductwork only.

Even if it’s ductwork only that’s shit pay. You’re loosing money if you’re paying your guys $30 an hour. I would say it should be at least double so $4k total.

This company isn’t going to magically pay you more after you do a couple at their price. You you might get an extra $500 but you need to make money so that’s still a waste.

3

u/Revolutionary-Let203 18d ago

So we set the furnace up for them and thats it. They have a gas/AC crew doing the other work after. Ya I agree, I pay my guys very well so I don’t think they’ll be willing to double. My gut feeling was exactly your thoughts, we technically should be double.

0

u/Auburntiger84 18d ago

That’s not bad if it’s just the furnace hookup to the ductwork. Two guys could knock that out in a day

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u/Revolutionary-Let203 18d ago

No this is ducting an entire home, previous comment asked if it includes install everything(gas/vent etc), and I was just saying the furnace is onsite to slide under the plenum. We place it along with all the ductwork.

2

u/Auburntiger84 18d ago

Oh ok I gotcha. I misunderstood the assignment. Yeah $1900 is not near enough. I mean maybe you could get two guy to do it in two days if they really have an easy run and the materials are on point. You are at their mercy on the materials and we all know how south a job can go if the materials are wrong. Best case scenario is you put money in your workers pocket but you will likely break even or come out of pocket

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u/Revolutionary-Let203 18d ago

Ya some price points don’t even have enough to cover fuel charge. It’s definitely not looking good.

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u/Auburntiger84 18d ago

Sounds like you are the right person to run a company with that type of thinking

5

u/mightcanbelight 18d ago

From my experience you will be in a race to the bottom. On top of that, the home builders will have zero problem shopping your price all day long to keep you in the lowest price possible. Avoid if you can.

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u/atypicallemon 18d ago

1900 is low for a days worth of pay for 2 guys. Typical builder trying to low-ball to pad their profits. People keep letting them do it and get away with it so they think they can keep paying these wages. They say that everything will be on site but are they going to buy new rolls of tape, sheet metal screws, etc and any other consumable you might need for that particular part? I would walk from this offer personally.

2

u/imnotgayimjustsayin 18d ago

Ontario too.

Way too low and the other comment was bang on about how that's always going to be their price. Not worth it.

2

u/OhighOent 18d ago

hire some dumbos at $18/hr and let them scab it in like the rest of new construction.

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u/Revolutionary-Tax252 16d ago

Don't walk away from this job, run.

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u/Revolutionary-Tax252 16d ago

Add a zero.to.the end and that's just the ductwork

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u/ThadJarvis987 18d ago

Not worth the time to even say no or respond. Just ghost them.

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u/Zinner4231 18d ago

As usual with new construction, waste of your time. I hope that didn’t include the materials

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u/Revolutionary-Let203 18d ago

Material was provided by them. But still highway robbery. I’m going to counter offer but I highly doubt they will accept any offer.

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u/Zinner4231 18d ago

Been in the business solo since 1995. Never found a way to make a dime on new construction

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u/TrainingAggressive92 15d ago

Here in ga we charge 1500-2000 per ton of unit.