Prime Cost

davy s

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Looking for some help please!
Just gave a new customer a daywork rate and his young qs wants to know what my prime cost is. Wats that and how do you work it out.
 
Feck all to do with him

Believe he his trying to find out your mark up/profit margin

Tell him thats the hourly rate for your services. End of story

How you set YOUR prices is nothing to do with anybody else, but yourself
 
Prime costs are direct labour cost, direct material costs and percentage mark up.
it is not always necessary to quote these costs in our game, and the young QS is probably just being a bit clever and doing it by the book. We usually give just a daywork rate, indicate the minimum of how many hours per man per day we will want, and that includes transport to site, overhead contribution and profit.(not a breakdown of it)
Prime cost only really applies to trades supplying labour and permanent installation materials unless it is an extremely large multi million pound scaffolding package where it is all daywork rates .We always quote separately for all extra scaffolding material needed on site, including transport.
Also don't let them scam you with retention.Retention is for products supplied permanently to or for the building just in case they fail,and retention on your money can be held for a year or more from your account. We are a service industry and all scaffolding is temporary and taken away at the end of the job, there is no defect period as we don't sell it, so it can't fail.
They try it time and again, but they can't argure with us when explained right.
Hope this helps
 
Thanks for that Yaggs. The thing about retention is good and I`ll use that in the future
So are my direct costs just the hourly rate I pay my lads. What about NI and holiday and if I pay a bonus or petrol money
 
On occasions contractors have tried this with me but I state on all quotations.
Due to the nature of our workf retention cannot be accepeted as we have no possilble bearing or effect on the quality of the finished building/structure.

and some have came back and said its for damage ie brocken windows or roof tiles for scaffolders. so why are we insured for. stand your ground, they will back down.
 
No Davy not what you pay the lads what YOU charge per hour and the minimum amount of hours , we charge a minimum of 4 hours per man to attend site to move one tube, you day work rate should be around the £30 per hour mark , so you send a lad to move some tubes you want £120 for it, even if it takes him 15 minute.
 
Phillio

I used to try and get the site agent to have one scaffolder on site all the time to do his extra modifications and alerations on a daywork rate explained it was cheaper for him than calling us in every other day

The main drawback to having high re-visit rate's and minimum hours charged, is that the mad bricky or who ever, alters the scaffold themselves and makes a feck up as normal,we are left to sort it on our next visit :mad:
 
Rigger,thank the lord for the docile bricky,another visit equals cash,nowadays the pen is mightier than the spanner...
 
Definitely the way forward on a lot of jobs, a real struggle for the smaller firms though. I think this has been one of our weaknesses on a couple of jobs lately that can turn in to a bag of knitting very quickly. Not just the scaffs fault of course you still need a client with a desire to keep the jobs right as well.
 
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