Is The Price Right For Your Roofing Contract?

Roofing Business Tips

One of the biggest reasons roofers’ underbid their contract is because they set their price by the number of squares instead of time it takes to get the job done. If you want to learn how to bid for a roofing job to maximize your profits, here are a few things you must know.

The problem with bidding for roofing contracts is that most roofers tend to underbid for their work in the hopes of actually getting the job, as opposed to actually charging the rate they’re supposed to. Not only does this hurt their own profits, it also hurts other roofing contractors who will try for jobs in the same locality in the future.

Before you start learning about how to bid a roofing job, here are some of the major steps that you should go through to get the roofing done properly as a roofing contractor, and earn enough for your work.

Understand how big the job is

What’s the current condition of the roof? If you can’t reuse the flashings, then factor roof replacement flashings into material costs. Figure out what are all the unusual roof features, the condition of those features, the number of valleys in the roof, and where the roof has been damaged. You can also determine whether or not the roof has to be completely torn off and replaced, if the existing materials can’t be used for roof repair.

Although that can be a lot more expensive, it is inevitably going to be essential to let the end customer know, since they deserve the option to make an educated decision.

Another thing that you will have to factor in are the building codes, to see if you can add more layers and shingled over, or if you have remove the existing layers and add brand new shingles. While the former is cheaper and easier, it can also cause building code violations if you haven’t studied the building code and history properly. If you can’t add another layer, make sure to factor removal costs into the estimate. A bad roofing job in the past prevents you from just adding new layers if required.

Finally, you will also have to figure out which materials and colors are unavailable to use by the building codes.

Get proper measurements

Measure the exterior of the house. Use the measurements to find out the area of the house. Divide the area by 100 to find out the total number of squares. Each square will take 3 shingles to cover. Most residential roofs are pitched, which means we will also need to factor in roof pitch into the calculations to be accurate.

The roof pitch is the slope of the roof created by the rafter. This measurement gives us a sense of how much the roof rises when compared to the horizontal measurement of the roof.

A 6:13 ratio means the roof rises 6 feet for every 13 feet in horizontal length. The roof pitch varies between different houses, and you will need to measure the pitch to figure out whether it’s a low pitched, medium pitched, or high pitched roof.

The Roof Pitch multiplier gives you the square foot area of the sloped roof, ultimately yielding the actual surface area of the roof that you will eventually shingle.

Calculating material, labor costs, and providing estimates

After you have the measurements, determine which materials you will need and in what quantity. This can range from roof shingles, nails, flashing, underlays, moisture barriers, dumpsters, tar, and any additional tools that you may need.

Once you have an idea of what materials you need, you will also need to estimate the costs of the total materials. The total number of squares will tell you the number of shingles that you’ll need to cover the whole roof.

Underlayment is a vital roofing material placed underneath shingles and acts as a secondary defense against water damage. Once you have the total area of the roof, you can use that to estimate the amount of underlayment that you will need to cover the entirety of the roof. A single roll of underlayment covers four squares, which means we can use the total area, divide it by four, and that will give us the total amount of underlayment that is required.

The most common material used for roofing is asphalt roof shingles, but solar tiles, rubber slates, metal roofing, and other materials are also used, depending on what the customer wants. Talk to your client and your supplier to figure out the total cost of the materials, and then you can get the total bill of materials, excluding labor.

Labor costs are determined by the number of hours that you will spend working on this job, the total number of people who will be working on the job, and finally, the hourly labor cost.

The hourly labor cost will include a number of factors; the worker’s wage, the taxes you need to pay for your employees and professional services, and any additional charges you incur as a business. Using the labor hours and hourly wage, you can calculate the total labor cost by multiplying both the labor hours and hourly wage.

Finally, you will also need to factor in overhead costs, such as accounting, insurance, tool costs, rent, gas for the trucks, etc. All of this will need to be a part of your estimate so that you’re not running into a loss with your business.

Finalizing a roofing bid

Once you’ve done all of the above, you can finally create a professional bid that can convince customers that you’re not only charging a fair price, but you’re also ready to provide a competent service beyond what your competitors provide.

A professional bid is more than just a list of prices that they will have to pay for. It’s a sign that you know your business in and out, and helps your customer understand that doing a job is more than just paying for materials and some additional labor costs. By allowing that kind of transparency, your clients know that you’re not pulling numbers out of thin air.

Your roofing bid will include a breakdown of services, costs, and materials. Finally, it’ll also include contact information for both you and your client, along with the business name, logo, and the expiration date for the bid, if the client takes a long time to accept.

Conclusion

Once you learn about how to price a roofing job, the actual job is much easier, becoming a task of completing the task on time, and ensuring that your employees are sticking to the hour estimates that you have mentioned on the bid.

Collecting on the payment can be either through stages or through the final completion of the project, but most contractors choose stages so that there is a lesser financial burden on both parties to part with a huge sum of money at any given time.

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