if you get a bid job done waaay under hours do you give a discount?

[huggytree]

once in a while i bid on a job and dramatically over estimate the labor

i got the todays job done in less than 1/2 the hours...maybe even 1/4th the hours.....im making crazy money on this one....like $3,500 for 8 hours of work

when this happens sometimes i give a few hundred back, sometimes i keep it....ive had a number of jobs lately that went longer than expected and i most likely broke even on.....win some, lose some

the builder will have a rough idea how many hours i took and i always worry he will take his calculator out and do some figuring


when a homeowner complains about me getting done ahead of time and asks for a discount i always say 'sorry, but if it took me longer i couldnt have charged you more, so a bid is a bid'

any thoughts?

[Steve B]

This is an unusual enough situation that I would give a significant refund. It's more in the category of a mistake rather than you just worked a little faster and/or got lucky on a few details. Plus, it just seems like the right thing to do.

[billbenson]

I agree with Steve B.

[GreaterVisibility]

I'll third Steve's post.

[Rover]

Don't really know anything about contracting or construction but as a consumer if I got money back because the pro had an easier time than thought, I would be tickled to death!! Would defiantly be recommending to friends and family, "That guy was an Honest man, he actually gave me some money back because the job went better than expected!!"

[huggytree]

the wife says im crazy to give a discount.. ..and she is who i always go to when im not sure if im being greedy

ive given discounts in the past and then had builders EXPECT them every time a job goes well....that has soured me to the concept

the project expanded slightly today and i had decided to do the 'extra' work for free......probably $400 worth

i completed the job this morning....$4,000 labor for 9 hours work....the conditions were as bad as they come...i think i have 1/2 a pound of spider webs on me....the basement was out of a horror movie..i blow my nose and its pure black.......i earned some extra, but not $410 per hours worth

im obviously honest to even consider giving some back...it is bugging me....im not going to give back $2,000.....but doing the $400 worth of extra's is no problem....

[Pack-Secure]

A bid is a bid in the business world. Giving money back is a matter of personal choice. I think giving money back makes for some awesome recommendation points for places like Angie's List. As a consumer, I would have to first question was the job done correctly that quick. If it was done correctly, I would then have to say THIS GUY ROCKS for giving me back some money.

[SDGSteve]

Rover makes a good point, building trust is really good, for me it often depends on the client, a lot of clients I'll do quick jobs/updates for free, and a lot of others constantly push how much we agreed on doing and end up getting things a lot cheaper than they should have done, occasionally finishing under budget just balances these out. In your example though, it's a pretty big sum, I'd certainly give some back.

[Harold Mansfield]

If I quote someone 5 hours and I finish in 3, I bill them for 3.
If I finish in 3 and then have to spend 2 hours on the phone answering unrelated questions, I bill them for 5.

I agree with Huggy. It goes both ways. I've had projects go longer than expected or have unexpected complications like not being able to get in touch with thier Scotland hosting company for weeks, but I don't jack up the price. I stick to what I quoted them.

[huggytree]

If I quote someone 5 hours and I finish in 3, I bill them for 3.
If I finish in 3 and then have to spend 2 hours on the phone answering unrelated questions, I bill them for 5.

I agree with Huggy. It goes both ways. I've had projects go longer than expected or have unexpected complications like not being able to get in touch with thier Scotland hosting company for weeks, but I don't jack up the price. I stick to what I quoted them.



this job was bid for 36 and was done in 9

i went there today and did another 1.5 hours of work for free + free parts.....

ive already been paid by the builder(today), so he's obviously ok with it

i told him to make sure he lets the homeowner know i did todays work for free

and in my opinion these things never go both ways....if ANY job goes over the bid time I have to eat it, but if its done early i should give a discount....id bet 100% of the customers would agree with that statement

its not unusual for me to get jobs done under hours....yea that job that i bid 36 on could be 24 hours or so if i kick butt......but getting it done in 9 gets to a level that bugs me.......even with the extra work i really made out

the wifes been bugging me for Disneyworld again this winter.....this job just paid for it.....thats the best up side!

hopefully i keep the customer.....its through a builder, but its a customer who owns multiple properties and ive worked for for years....i should be safe since they dont know it took me 9 hours....the builder knows, but not the customer

[Harold Mansfield]

this job was bid for 36 and was done in 9


That's a big difference and a unique situation. I'd probably split the difference, bill them for 18 and make everyone happy. I make twice as much, they pay half as much.

But that's what I would do working from home sitting at my desk. I may feel differently if I was in the field, weather, driving, price of gas, and digging around a crawl space in the cold, swatting spiders with a dog barking in my ear.

And through a 3rd party like a contractor is a different story too. When I work as a sub, I bill for what I quoted no matter what. One of the agencies I work with from time to time encourages it. They are always asking if I'm sure I don't want to throw a couple more hours on it.

Every situation is different. You guage it on it's own merits. Nice people, or regular cleints, I'll make sure to treat them accordingly.

Some say those make up for the ones that you get screwed on. And if everyone is fine with the price and the work, what's the harm?

Inevitably, if I make out on a job like that, I usually end up throwing them some extra attention or a freebie somewhere down the line. But those are pretty rare for me. Most people use up every second and then some.

[billbenson]

To me it's something that should be built into your overall margin. If a job takes a lot longer than expected, you eat the loss but it's actually covered by a slightly higher margin across many customers. If you over estimate as in this job, you give credit in some way. That way you look like the honest hero. And at the end of the year, you break even for the overs and shorts.

[huggytree]

the actual property owner has gotten some great deals from me...they always purchase their own fixtures, so i lose all the markup.....ive more than made up for all the good deals ive given them now.....i have typically done their jobs for T&M.......this job was larger, so i did it with a bid this time

i still think it was a somewhat competitive bid....even though i got it done so quickly....it most likely should have been $1,000 less than my bid to be 100% competitive with the market.....i misjudged by anyones definition

i need these once in a while to kick my prices back down to earth.....the wife gave Disney my credit card today....the whole vacation is from this job!

[heart1234]

once in a while i bid on a job and dramatically over estimate the labor

i got the todays job done in less than 1/2 the hours...maybe even 1/4th the hours.....im making crazy money on this one....like $3,500 for 8 hours of work

when this happens sometimes i give a few hundred back, sometimes i keep it....ive had a number of jobs lately that went longer than expected and i most likely broke even on.....win some, lose some

the builder will have a rough idea how many hours i took and i always worry he will take his calculator out and do some figuring


when a homeowner complains about me getting done ahead of time and asks for a discount i always say 'sorry, but if it took me longer i couldnt have charged you more, so a bid is a bid'

any thoughts?

I always believe you need to treat others as you would like to be treated.

One business who is a client of mine was charged way more previous to coming to me. Since taking them on, it is probably costing them about 2/3's of what it was before. They are more than happy and almost see me as a hero in their eyes.

The difference is that I only charged them for the hours needed whereas the other company charged a flat rate even though it did not take the time they said to look after the account.

You always have to be fair with people or else it may come back to haunt you at some point.