20 x 20 Shed

stantheman

hey guys, quick question
neighbor offered me 4000 to build him a 20 x 20 shed, with material and labor coming out of the 4000. he already as the concrete slab poured. He stuck steel 1" bolts every 3 feet. He told me its safe to build it out of all 2x4s, connecting them with the bolts. there will be one 8x12 entrance with a split swinging door, and the roof will be prebuilt trusses. any ideas or tips

TazinCR

Get a materials list and see what the cost of that will. Take that away from the 4k and now is it worth it. Personally I would give him a labor price and he buy the material. You can quote this week and the price of some items go a lot by next week. You can believe he has already done his math. I may go home hungry but not tired and hungry.

buletbob

Buy the time you remove material costs and labor for your help. is it worth it. I would approach him and say no thanks I have to live next to you and I value that. Sorry. BOB

ccarlisle

We see 3 different types of contracts for things like this: (a) a "job" price - in this case the $4000 - which IMO favours the buyer because it is rigid and does not account for more materials and/or time than originally expected (which comes out of your pocket). OR (b) a labour+materials variable contract - where you are essentially paid by the day, he pays for the material. This favours the contractor because he can spend the time he wants at it. Most buyers wonder if this is efficient use of time...

(c) the most favoured type we see is where you quote all your fixed and variable costs, i.e your minimum charges to cover your time, profit, expenses and overhead, mark up the materials by 15%, then charge a variable daily rate thereafter. Everyone wins here. Your costs are covered, you know you won't be losing money and the buyer gets what pays for. No more no less.

On something like this, if this job took you three days, two men, and your minimum "confortable" daily rate with a truck was $800 , then you'd charge $2400+materials. Daily rate thereafter.

Most people go for this. The contractor gets his living paid for working and the buyer only gets what he pays for. Takes the variability of material costs out of the equation.

rjniles

I just built a 16 by 24 shed (384 sq ft) for $5600. I did all the work except pour the slab which cost me $1400. $5600 - 1400 = $4200.

He wants you to build a 20 by 20 (400 sq ft) for $ 4000 including materials.

Find another friend!