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The Goldilocks Price

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Jim in AZ
(@jim-in-az)
1,000+ posts Member

@murphy 

I don't think a "multiplier" should ever be below 1.72 - I have seen this work for just over 50 years...

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Posted : January 23, 2022 7:46 am
Murphy liked
Gary
 Gary
(@gary_g)
100+ posts Member

From the Manufacturing world, COST, QUANTITY, or QUALITY. Pick any two.

I always explained Quantity as Time. 

 

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Posted : January 23, 2022 8:07 am
ncsudirtman
(@ncsudirtman)
200+ posts Member
Posted by: @jim-in-az

@murphy 

I don't think a "multiplier" should ever be below 1.72 - I have seen this work for just over 50 years...

The firms I have worked with (all in business for several decades and well respected with lifetime clients) never went below 2.5x typically. I have a close relationship with a grading/utility contractor who has always told me his multiplier can't be below 3.5x to 4x depending on the work required to be done. Granted that's a different market, business model, materials and assets being purchased by the business, but it gives some perspective on what markets can bear

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Posted : January 23, 2022 12:34 pm

Murphy
(@murphy)
500+ posts Member

@jim-in-az 

Are you saying a linear foot multiplier?

I estimate project costs based on the time I think it will take to get it done multiplied by hourly rates.  This total is then multiplied by 1.25 because I can't curb my optimism.  It's not rational but it works for me.

 

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Posted : January 24, 2022 3:08 am
Jim in AZ
(@jim-in-az)
1,000+ posts Member

@ncsudirtman 

OOPS! I meant 2.7. That would be the Fixed-Fee price based on the average hourly wage of the folks performing the work.

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Posted : January 24, 2022 8:24 am
ncsudirtman
(@ncsudirtman)
200+ posts Member
Posted by: @jim-in-az

@ncsudirtman 

OOPS! I meant 2.7. That would be the Fixed-Fee price based on the average hourly wage of the folks performing the work.

agreed. nowadays finding some one to do the work (efficiently & effectively) in order to pay them the wage seems to be the biggest problem most surveyors & engineers are having. even recent graduates of 2yr & 4yr programs would rather keep going to school for a while longer or take a the easy government job than work for consulting firms

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Posted : January 24, 2022 8:47 am

ncsudirtman
(@ncsudirtman)
200+ posts Member
Posted by: @murphy

@jim-in-az 

Are you saying a linear foot multiplier?

I estimate project costs based on the time I think it will take to get it done multiplied by hourly rates.  This total is then multiplied by 1.25 because I can't curb my optimism.  It's not rational but it works for me.

 

ditto - optimism is a budget buster

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Posted : January 24, 2022 8:47 am
holy cow
(@holy-cow)
10,000+ posts Member

Most field days I will take along one more project file just in case we have great luck all day on our planned project(s).  In almost every case it comes back unopened.  

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Posted : January 24, 2022 9:07 am
Jitterboogie, dms330, BushAxe and 1 people liked
BushAxe
(@bushaxe)
500+ posts Member

@jim-in-az 

I think you and NCDirtman both might be mistaken. A 2.5 or 2.7 multiplier on the hourly wage of the employees is likely to account for the firm’s overhead costs. Things like benefits, rent, insurance, social security taxes, workers comp, etc. Thats totally different than padding an estimate to cover the unexpected.

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Posted : January 24, 2022 10:37 am

Firestix
(@firestix)
100+ posts Member

Project update.   I'm still waiting for a site visit.  Customer is in quarantine.   

I'll keep you posted.

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Topic starter Posted : January 27, 2022 6:02 am
Chris Bouffard
(@chris-bouffard)
500+ posts Member

@bushaxe No, I was talking the whole survey but failed to consider the subdivision portion.

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Posted : January 27, 2022 7:41 am
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