How to Calculate the Cost of Your Renovation Project

Construction teams are often faced with the task of completing a residential or commercial renovation project. Whether you are new to the business or are operating in different territories, transparency is key when working with clients. There are numerous factors to consider when figuring out how to draw up the cost of a renovation assignment, and focusing on materials, capabilities, staffing numbers and your existing fleet ensures your project goes according to plan.

When calculating the cost of renovation efforts, keep the following in mind to meet the expectations of your clients while maximizing cost-effectiveness: 

1. Understand Your Client's Budget

Residential and commercial renovation projects will involve some negotiation. Set up a meeting with clients to understand what they are willing to spend and what they hope to see by the time the assignment concludes. This process gives you an idea of your responsibilities, material requirements and the number of workers you will need to finish the job.

2. Identify the Need for Building Materials

An important component in learning how to calculate the cost of a renovation relates to what materials you already have and what still needs to be purchased. Renovations might require restoring frames, doors, windows and roofing. Project managers can better understand profit margins based on what your company has in storage.

Buying raw materials and supplies in bulk gives your contracting business a competitive edge. If you know crews rely on wood, metal and hardware pieces year-round, cut costs by ordering through a wholesale dealer. The lower cost per unit saves you money over the long term.

3. Manage Material Waste and Reusable Resources

Renovations bring a residential or commercial space to an all-new condition. Depending on the size of the job, it is common for scraps, dirt, soil and debris to be left behind once tasks are complete. Construction professionals should account for any waste management fees associated with their efforts.

If possible, reuse dirt, gravel, soil and other elements for upcoming assignments.

4. Consider Employee Numbers

You can make a renovation as cost-effective as possible by recognizing the need for staffing and delegating tasks as necessary. Think about how many workers will be needed to handle the renovation job based on square footage and the nature of the work.

The price you establish with clients must factor in the cost of labor and employee salaries, so it's best to consider any specialized tasks early and ensure you've accounted for all the help you'll need. 

5. Rent the Equipment You Require for Success

Manual labor can take weeks or months to complete. Renting machines from a trustworthy source like The Cat® Rental Store is an excellent way to acquire specialty tools, equipment and attachments on a temporary basis. From a one-time renovation job to expanding your current fleet to accept new clients, renting enables you to focus on construction details without a long-term investment.

The Cat Rental Store makes it easy for you to get a quick quote for aerial lifts, generator sets and other equipment for renovation work. Calculate the cost of your renovation rentals with flexible financing plans available through more than 1,300 dealers worldwide.

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The Cat Rental Store connects your construction team to innovative technology from over 70 different brands. Dial 1-800-RENT-CAT today to learn more about our rental equipment available near you.