How much are you worth an hour?
by George Waldhauser

When you work on a particular job, what do you charge per hour, and are you charging enough for yourself? The Davis-Bacon act has determined an hourly rate to pay certain trades on federally-funded jobs, but how does that apply to what you pay yourself?

What about the time you spend on administrative tasks, like bidding and solving problems? If you aren?t getting paid for these pastimes, your paycheck can become diluted rather quickly. You probably wouldn?t ask an employee to pick up leftover materials or job site trash on the way home without paying him for his time. You should probably treat yourself the same way.

To determine what your hour is worth, here are a few parameters to go by: skill level, experience, education, specialty, and demand.

The skill level you have reached in your trade can be determined by a description of your work. In your job description there are probably several things you do: There?s the low-end stuff, which is probably the functional work needed to get jobs done. And there?s the top end work, where you shine as a craftsman. At the low end of what you do, your pay per hour may be worth around the Davis-Bacon category. But at the high end, where you?re excelling at what you do best, the sky?s the limit. I once worked on a hotel project with a young woman who painted the interior of elevators in faux marble. Her tools were a feather, some very small brushes, and some considerable talent. Her fee, notice the word fee, was $80 per hour for faux marble painting. And this was at the end of a recession!

An experienced carpenter comes to find out what works and what doesn?t. As he gains experience during his career, he can avoid mistakes that would slow down his jobs. He does measure twice and cut once. His experience expedites the job and helps him finish a project in less time than an inexperienced carpenter. As an experienced craftsman, his demand for a higher hourly wage is probably justified. Materials are not wasted and hopefully, no time is lost. A lead carpenter is somewhat of a visionary as well, as he can picture the completed job, and plan ahead for the next process. A novice or a journeyman carpenter can do individual tasks under supervision, but it takes experience to bring it all together.

"A mind is a terrible thing to waste." We have probably all heard this phrase at least once in our lives. It illustrates how important an education is if you don't have one. The craftsman who seeks to improve his mind and skills is a confident person, and it shows in his work. The days of the "old time" construction guy are a thing of the past. We have lasers, computers, scanners, digital cameras and estimating software. New materials, along with new building methods, have been introduced to construction. Look at the impact prefab components have made in the home building industry. Measurements are now calculated on a hand-held instrument. The old story pole is seldom used anymore as a layout tool.

A specialty in your trade can make a difference in your wages. If your craft is unique it will usually require more skill. Demolition, custom cabinet making, house moving, design, engineering,
and decorating are viewed as unique specialties that people are willing to pay more for. For instance, the large number of concrete contractors tend to establish a general scale for concrete work. However, if a concrete contractor specialized in patterned or colored concrete, he would be providing a specialty and could demand a higher price. Any contractor can add a specialty that sets him apart.

Baltimore contains many "row houses" built in the early 1900s. Many of these old homes are now being discovered by a new generation as affordable housing. A local deck builder started building decks on the roofs of these homes. These ?row-house? decks provided spectacular views, additional living space, and a great place to sleep on hot, humid Baltimore nights. Suddenly there was a great demand for these decks and this builder is commanding heady compensation for his innovative twist.

This brings us to the last factor for structuring an hourly fee: demand. An auctioneer?s job is to attain the highest price for whatever item is being sold. The auctioneer receives a percentage of the total price of the final bid. Value is determined by the buyers -- who pay what they think the item is worth. Think of your skills and talent as a bid item. As you become more in demand, you can raise your bid price. Determine what you are worth by determining what folks will pay you. If you have a backlog of work, as most of us now have, maybe it?s the time to implement this procedure. If you encounter some resistance, you can always adjust your fee down again.

As builders, we?ll never achieve the astronomical salaries professional ballplayers, movie stars, or rock stars demand, but if we give ourselves a raise we might at least be able to afford to see them.

Company Name: American Contracting Exchange Inc.
Website: http://www.homerepair.org
Author: George Waldhauser
Address: 603 Millwood Dr.
City: Fallston
State: Md
Zip: 21047