Building Invoicing for Tools Ask questions and find answers on all aspects of tools including hand & power tools.

[MaxTheCat]

I've just received an invoice from my builder that includes the cost of items I thought were his costs -- grout floats, brushes, a diamond cutting blade, gloves. I've never seen this before, and wonder if this is usual and proper?
I asked him about it, and got a long long explanation.
I'd like some thoughts on it. These charges account for only a small amount of the total on this invoice (the third I've received). So it's not a big deal financially, I am just wondering if he's having me on.
Thoughts gratefully received. (He's a friend, so I don't want to fall out over it.)

[collectors]

Never heard of this before unless it was for an extra that was asked for by yourself. But otherwise this should all be within the price. It's like going to a car wash & them saying, Oh the soap & polish is extra.
He is trying it on.

[Woodcrafts_UK]

Did you ask for a detailed invoice? It sounds like that is the case, and he has done just that, listed every detail of the work involved, including tools and materials. Normally the 'labour' part of the job would include an amount towards the tools he has to have to do his job but that amount would be distributed over numerous jobs. At the end of the day, you will be paying him for the service he has provided, and to do that he has to cover the cost of all his expenses. It's just that those would normally be 'hidden' from you, otherwise it gets too complicated as has happened here.
However, if his labour costs are similar to other traders, then he is overcharging you by adding on these 'hidden costs'.

[Hugh Schkok]

Many don't realise that there is a known equation used when pricing work. When you buy a tool say a circular saw it would consist of a blade and a drill. The two of them depreciate over time and use. The blade (historically) would be around 500 metres of cutting timber and the drill bought at say £350 would be shagged out in about 1500 hours of use where it's value hits zero.

If you had a spreadsheet then the depreciation can be automatically added in all you ned to do is guestimate the quantity of cutting (best guess in hours) this then becomes the starting price for your saw on the next project (eg 1500 hours - hours guesstimated say 15 hours equal new starting price of 1350 hours left) will be and the blade depreciation again in metres cut.. The same applies to al tools and the final figure is multiplied by 1.1 or 10% so as to build in any unidentified factors that cannot be quantified when the work was costed. Next add in the tools you may have to hire in and if you operate them yourself add on 1.25 as the excess for fuelling and greasing and cleaning the machine.
(Remember to copy the sheet before you start ready for the next estimate)
If you have a catalogue sheet with the tools and consumables listed and the wear factors in a separate column with additional places for tool hire then you can title the sheet with an easy to recognise name tag, which includes the Job Code on the job sheets when the totals are displayed label them Depreciation and hire costs. = eg: £999.99 + VAT @20% = £1,200. If the client wants a breakdown you can print them out a copy and hand it to them. A rather more crude form is the one you have been presented with. Sadly business is not a hobby and if you attempt to harbour the costs then have 'T' shirts made up saying "I like giving my money away. Stop me and take some"
Hugh

[Hugh Schkok]

Many don't realise that there is a known equation used when pricing work. When you buy a tool say a circular saw it would consist of a blade and a drill. The two of them depreciate over time and use. The blade (historically) would be around 500 metres of cutting timber and the drill bought at say £350 would be knackered out in about 1500 hours of use where it's value hits zero.

If you had a spreadsheet then the depreciation can be automatically added in all you ned to do is guestimate the quantity of cutting (best guess in hours) this then becomes the starting price for your saw on the next project (eg 1500 hours - hours guesstimated say 15 hours equal new starting price of 1350 hours left) will be and the blade depreciation again in metres cut.. The same applies to al tools and the final figure is multiplied by 1.1 or 10% so as to build in any unidentified factors that cannot be quantified when the work was costed. Next add in the tools you may have to hire in and if you operate them yourself add on 1.25 as the excess for fuelling and greasing and cleaning the machine.
(Remember to copy the sheet before you start ready for the next estimate)
If you have a catalogue sheet with the tools and consumables listed and the wear factors in a separate column with additional places for tool hire then you can title the sheet with an easy to recognise name tag, which includes the Job Code on the job sheets when the totals are displayed label them Depreciation and hire costs. = eg: £999.99 + VAT @20% = £1,200. If the client wants a breakdown you can print them out a copy and hand it to them. A rather more crude form is the one you have been presented with. Sadly business is not a hobby and if you attempt to harbour the costs then have 'T' shirts made up saying "I like giving my money away. Stop me and take some"
Hugh