Michael,

My rule-of-thumb for a quick & dirty job estimate is materials at 20% of 
labor cost before overhead & profit. This comes from two decades of cost 
analysis in the NYC market. It is accurate to the tune of, "We won't get 
hurt too badly if we don't pay close attention on this." That said, 
though cost analysis uses simple math (add, subtract, divide, multiply) 
we are always dealing with complex systems with many variables.

In NYC in particular there is a heavy logistics burden. It can cost more 
than the materials in labor, many times over, to get them from the 
supply point to the work. If we are talking 'optimal' return on 
investment I am always in favor of using the best available materials 
with an appropriate mix of labor skills. Though as Deb Bledsoe rightly 
points out the selection of materials can have a significant impact on 
the 'means' of the work and on the mix of the labor skills required to 
use the materials in a manner that does not screw them up... it does not 
help to have a 2-part epoxy system with mechanics that can't spell past 
the letter A. And if you have contractors/mechanics that can read (with 
various levels of comprehension) you might actually find that they worry 
about carcinogens and lead poisoning and all the labor and health issues 
that go with it. So what I consider costs more than materials is not 
labor, what costs more is intelligence. The commodity I look at in 
putting a project together is not labor, it is mental capacity. Right 
now we are working zero tolerance on dumb people and that makes us 
appear to be expensive... but then again I also believe in attempting to 
deliver value on the dollar.

That said, having recently stopped by the 26 townhouse facades on St. 
Felix Street in Brooklyn I have to say that your materials have held up 
incredibly well -- but I will also credit the mechanics who applied 
them. On the other hand, the folks that fabricated the precast 
'brownstone' stairs should be quartered and shot on sight. Talk about 
barf index!

I am incredibly sorry that I will not be able to make the Natural Cement 
conference in DC this month. Cash flow is tight and there is too much 
going on in business right now for me to break free.

We purchase our unprinted t-shirts off the shelf at a dollar discount 
shop. I also get in trouble because I profess to enjoy shopping at 
Wal-Mart -- it keeps me honest with my roots. Lunch is important... we 
spend money on food... we also spend money on tools. An unhappy mechanic 
is way too expensive.

][<en


edison wrote:

>Bravo, Eric. I am always amazed that the typical 2-5% of total project cost 
>represented by materials is always the subject of "value engineering" when 
>there is probably more to be saved by dropping donut money and company T-
>shirts.
>

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