How Commercial Painting Contractors Price Their Services?

When looking for commercial painting contractors in NYC, you will find price offers that vary from one contractor to the next. But why? Why do contractors bid with different prices if they perform the same tasks to finish the same job?

The reason for this is that commercial painters in NYC have different fixed overhead and legal expenses.

Let’s take a brief look at both of these:

Fixed Overhead

There are some fixed overhead costs—costs that are ongoing and not necessarily related to the volume of the contractor’s work—that can add up.

Some of the standard fixed overhead costs include salaries, advertising and business promotion, accounting and legal fees, auto and truck expenses, office supplies, travel expenses, etc.

As with any successful business, commercial painting contractors will integrate their overhead costs into the contract to remain profitable.

Legal Costs

Overhead costs are heavily influenced by legal expenses such as insurance. Small businesses that are family-run and only employ family members may not have to pay the high cost of workers’ comp. General liability limits and coverage vary greatly; therefore, it is good to verify what limits a New York painting services provider can offer.

Contractors must also pay for licenses, application and manufacturer certifications, safety training, and compliance with local, state, and federal safety regulations. Like all overhead expenses, these expenses are not visible in the quotation, but they are drivers of the overall project cost invoiced to clients by painting contractors.

Every contractor has a unique set of overhead and legal expenses. Because of the varying price rates, you should get 3 to 5 price quotes from different painting contractors. Price comparison from these short-listed contractors allows you to make a more informed decision about which contractor is price-right for the job.

However, be wary of contractors who quote the lowest price since this may be a tactic to win the bid, but it may lead to substandard quality of work.

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Created on Jun 10th 2021 03:45. Viewed 219 times.

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