Business

Pricing strategy for client-supplied materials

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Phil Jennings

I'm curious how you guys handle labor-only quotes when the homeowner wants to buy their own Ipe. I recently had a lead with a 600sqft deck project who insisted on sourcing their own 5/4x6 Ipe from a big-box wholesaler to save a few bucks. I ended up padding my labor estimate by 20% to account for the lack of material markup and the potential nightmare of dealing with low-grade, poorly acclimated stock, but I feel like I might be pricing myself out of the market. Do you guys charge a flat 'handling fee' for site-receiving client materials, or do you strictly push back and refuse to install unless the supply chain is under your control? I prefer managing my own shipments for quality control, but the current bidding climate is getting aggressive.

3 Replies

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Erica Lindstrom

I've been down that road, and honestly, the 'big-box Ipe' trap is a headache. I stopped doing labor-only installs for homeowner-supplied lumber because you end up eating the cost when those boards show up twisted, checked, or with uneven milling. My policy now is that I only work with materials I source through my trusted suppliers like Advantage or OHC. If they insist, I charge a non-refundable 'material management fee' of $1,500 upfront. It covers the extra time spent grading their pile and dealing with the inevitable waste. If they don't like it, I let them walk. Protecting your reputation is worth more than a shaky contract.

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Rachel Wood

I hear you on the competitive climate, but I’ve learned the hard way that 'saving a buck' usually means I’m the one burning hours fighting cupped boards or uneven milling. If I do take a labor-only job, I include a specific 'Material Quality Clause' in my contract. It explicitly states I charge my hourly shop rate to cull, rip, or plane any boards that aren't job-ready. When they realize that potential extra labor could cost more than my standard material markup, they usually let me handle the sourcing. I only buy from suppliers who guarantee KD-HT stock because I don't have time to play guess-the-moisture-content on a job site.

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Erica Lindstrom

You hit the nail on the head. Beyond the quality issues, there’s the liability of the fastener system. When clients source their own Ipe, they usually show up with generic hidden fasteners that aren’t rated for the density of kiln-dried Ipe, leading to premature board movement or shearing. I tell them straight up: if they supply the decking, they don't get my labor warranty on the install. If I can't guarantee the deck is going to stay flat and tight because of subpar material or cheap clips, it’s not worth the risk to my reputation. Stick to your guns—let them find a handyman if they want to roll the dice.

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