Labor rates?

[Pete Fiannaca]

Hey friends - Just wondering what people are running into regarding labor rates. I negotiated with a general contractor to bid hourly instead of per job. I know this person and he's done good work for me in the past. He's currently charging me $45 an hour total for him and his assistant, plus supplies obviously. Kitchen gut (down to the studs) and rebuild ended up clocking about 45 hours, so around $2100 plus materials. How does that sound compared to those of you getting bids on the whole job instead of at an hourly rate? Pete

[Charlie John]

@Pete Fiannaca great topic! I pay $45/hr for my skilled carpenter alone. But he's worth it because he's efficient, knows his craft and does quality work. However as the one managing the project, I always make sure I'm not paying him to pick up material when I can coordinate my $15/ hr guy do it. Same goes for other tasks like general demo, cleanup or basic tasks that take time that anyone can do. 

Plug the professionals in at the right time to save money. Prepare their work using a lower paid worker and you can save a lot. Your tradesmen will also be happier since they aren't dealing with putzy tasks. 

 I know that between 40 and $50 an hour is a fair rate to pay someone with skilled labor.  I recently got a bid for laminate countertops come in at 1500.  I know the material costs about 400.  I asked the contractor how long it would take and he said one day.  1 guy. That's how I knew I needed to find other bids because he was trying to make $1100 a day. Nothing wrong with that at all.  But I need to find a guy that will only charge me $400/day to get it done based on getting paid $50 an hour.