# Tearing down a 1 story hotel



## PreferredResto (Aug 14, 2008)

Let me preface by i may be in over my head on this as ive never torn anything down this big. Ive torn down a 2 car garage before and that went ok but heres the deal. 

GFs uncle has a hotel that he wants to tear down. Its actually only part of the hotel that he wants torn down. Its 2 3000SF buildingts that are 1 story and were modular in nature and set on a concrete block foundation. There is a crawlspace under both units that goes under the entirething. The buildings need torn down and hauled away and then the crawlspaces filled and grass seed spread. 

There is also a concrete sidewalk around it that needs busted up. It can be put in the crawlspace rather than hauled away. Its a shingled roof.

There are 3 bids so far. 
50k
47k
25k

I am working this up and I cant see where i would have that much in it if i did it with my crew. 

I have a guy that can run a track loader and do the tear down. I can rent the equipment as in 1 trackhoe and 1 bobcat for 1 week for 2900. 4 guys for 8 work days at 15 an hour is what i pay for laborers is 3840 for labor. I figure it will take 400 yds worth of dumpsters which is 10 40yd roll offs at 390 a pc. I am figuring for 12 to be safe so 4680 there. I checked on the permit and it is 100$ for demolition of commercial in this county. 

Most of the time you can get dirt for free from developers building houses but if you have to pay i know i will need 650 cubi yards to fill these crawlspaces if i dont leave any debris. at 20/Yd that would be 12k i dont think id have to spend that but if i did. I think i can still do this and make a profit at 25k? 
Anyone know more about this than I?


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## paintr56 (Feb 4, 2005)

I am not qualified to tear down or give an opinion on what it would cost. I will say you are putting out a lot of money, time, and worry for a very little return. Is this more of a favor for your girl friends uncle or a business opportunity?

Jim Bunton


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## Tscarborough (Feb 25, 2006)

So you have 2 old wings (how old? Lead, asbestos?) of a hotel to be torn down while another section is still in use? You plan on using random debris to fill the holes? Do you have any idea of the plumbing/electrical schematics?

Demoing old buildings (esp. commercial in use) is not simply tearing down stuff and hauling it away.


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## osborn (Dec 6, 2006)

I dont have any expierence in this large of demo. I know youll need to cap the sewer, gas and water supply. Also need to water it down as your doing it.


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## PreferredResto (Aug 14, 2008)

I suppose this is falling into the favor land because at 25k there isnt alot of profit in it for the work involved. 

These are 2 stand alone buildings away from the buildings that are still in commercial use. I talked to a plumber and he said 150 he could cap the 2 inch supply line and 6 inch sewer line. The uncle has the gas and electric disconnected already. Its a stick built building and i dont even think its 2x4 it seems damn flimsy. I think i might go for it if nothing for, for the experience of doing it. If other guys are bidding 47k for this and i can get it done for 20k then thats a great industry to be in around here.


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## Patrick (Apr 12, 2006)

Are you insured to do that scale of demo work?


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## rbsremodeling (Nov 12, 2007)

PreferredResto said:


> I suppose this is falling into the favor land because at 25k there isnt alot of profit in it for the work involved.
> 
> These are 2 stand alone buildings away from the buildings that are still in commercial use. I talked to a plumber and he said 150 he could cap the 2 inch supply line and 6 inch sewer line. The uncle has the gas and electric disconnected already. Its a stick built building and i dont even think its 2x4 it seems damn flimsy. I think i might go for it if nothing for, for the experience of doing it. If other guys are bidding 47k for this and i can get it done for 20k then thats a great industry to be in around here.



The 47K guys has experience, insurance, real subs, overhead etc.

Why would you do it for 20K? 
What happens if something goes wrong?


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## PreferredResto (Aug 14, 2008)

Patrick said:


> Are you insured to do that scale of demo work?


 
Im going to sub it out to my laborer crew and to a specialized equipmnt crew most of my work is subbed out and my GC policy will cover it. 

If something goes wrong it could suck. I am trying to make sure i understand all aspects of the job prior to agreeing. I am going to do it for 25k for him if i take it.


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## wellbuilthome (Feb 5, 2008)

Ive demoed lots of houses. A one story building should be a cake walk .I would sub it to a guy with a large track ho with a thumb .I like to pull the glass out , steel ,copper alum . A large track ho with a good operator will have the building down in a few hours . The clean up would go as fast as you could pull the trucks in .Once the block work and the concreet is busted up you could just dump the dirt in and smooth it with a small doser or a skid steer . If you have time you mite get free dirt but I would hate to have the job open .If you have space you could start finding free dirt before you take down the building . I dont even use any men when we demo . You do need a guy to get coffee, lunch , back in trucks Bs with the cops ect .


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## Bill (Mar 30, 2006)

Better watch for asbestos and lead paint! EPA will eat your ass up!


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## JPC2 (Jul 14, 2008)

I totally agree with WellBuilt. I've been involved with many demo's and most of the time it takes two guys - one in the excavator ripping and tearing and the other running the trucks to the dump. The debris is moved out as it's taken down - no dumpsters in the way. It's efficient, neat, and really quick.
By your description, it sounds like we would have that done in about 5 days complete for about 30K.


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## PreferredResto (Aug 14, 2008)

JPC2 said:


> I totally agree with WellBuilt. I've been involved with many demo's and most of the time it takes two guys - one in the excavator ripping and tearing and the other running the trucks to the dump. The debris is moved out as it's taken down - no dumpsters in the way. It's efficient, neat, and really quick.
> By your description, it sounds like we would have that done in about 5 days complete for about 30K.


 
buildings were built in 91 so there is no asbestos or lead paint. I think the dump is too far away to make it worth my trouble to drive the trucks though I guess i could be wrong. 40yd containers are 390 a pop with no weight limit so i was going to use those. I think im going to take it. I was planning on having my Foreman up there and 1 heavy equipment operator so it sounds like im not far off the mark on that plan.


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## SES Constructio (Mar 1, 2008)

You are going to "sub it out to your laborer crew" and they only charge you 15 bucks an hour like you figured in your original numbers? That is super cheap for labor subs that are insured.


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## Driftwood (Feb 15, 2004)

*Hope You rent,not own*

Do You want to risk loosing Your home?
I carry comp. and general liabilty insurance.If I sub out anything,I get a copy of their lby. ins. Sounds like You're prepaired to let a rag bag bunch loose on this project with no insurance! When They cause bodliy or physical damage,
You'll be backed up by an agreement written on a paper bag.
Sorry to be a hard a$$,but You need someone to bring You back to earth!


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## PreferredResto (Aug 14, 2008)

Heres the numbers. 

My labor crew that i sub evevrything out to is through a partner of mine. we have his company hold all of the labor crews and mine subs out the skilled labor. he charges me 15$ per hour which is his cost on the labor per hour. In exchange he gets a cut of the profits at job completion. Essentially my company is a shell. We have insurance and GC licensing. He has insurnace and WC. I think he pays his laborers 10-12 an hour and supervisors get 15. I usually pay 50$ per hour for a 3 guy crew or something close to that. 

Heres the numbers on the job as I see them so far, some things have changed since i originally posted. 

He has a heavy equipment operator that will run the track hoe and complete the job for 1500. He can rent a track loader for 1800 for the week. Its a big 130hp model so it should do the job. Im going to have my Foreman, (who owns the labor company) onsite as well to oversee the job and remove the windows prior to demo. I dont pay him anything up front though hell get a cut of profit on the job.

Permit is 250 and you have to also put up 500$ certified check for any public property that you damage during demo. I will plan for 12 40 yd dumpsters for 390 a piece

operator1500
track hoe1500
bobcat350
concrete tool150
dump fee4680
labor Cleanup1500
permit750
dirt12000
total22430

If i bill it at 24 i should have a profit on the job. Im pretty sure i can get the dirt for free. At a minimum I can get some of hte dirt for free. There are numerous developers building things in the area and there are quite a few sites with dirt piles 50 ft high that have been there for a while. If i dont have to pay for dirt I should make a nice profit? What am i missing here there must be something else


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## scottsanders250 (Jan 6, 2008)

Total estimate - $22,430
Bid price - $24,000
Gross profit - $1,570 (6.54%)

Subtract:
Plumber - $150
Your time - $1,200 ($30/hr, 40 hrs)
General Overhead - $1,500 (6.25% of $24,000; truck, insurance, gas, copy paper)

Gross profit - $1,570
Other Expenses - $2,550
Net loss - $1,280

---

Total Estimate: $22,430
Add:
Plumber: $150
Supervision: $1,200 ($30/hr, 40 hrs)
*Sum:$23,780*
Add:
Contingency: $2,378 (10%)
*Sum:$26,158*
Add:
Overhead: $1,635 (6.25%)
*Sum:$27,793*
Add:
Profit: $1,818 (6.54%) Actually $909 since it is split with partner.

Total Bid Price: $29,611 for an experienced demo contractor


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## Bob Kovacs (May 4, 2005)

So help me understand this- you're going to charge $24k for a project that you've determined will cost you $22,430, so that leaves a whopping $1,570 "profit". From this, you have to pay your "foreman" who gets "a cut of the profits"- even if you gave him the whole $1,570, that's pretty weak for a full week's work for him, don't you think? 

Now, this also assumes that everything goes exactly according to plan- what if it rains for three days and you run over on the trackhoe rental? What if it takes 16 dumpsters? What if it takes $14k worth of dirt to fill the basement (btw- where's the compaction equipment and labor for that fill installation????)? What if your "experienced" $15/hour "operator" accidentally knocks over the portion of the building that's supposed to remain? What about your insurance costs?

Sounds to me like you're taking a hell of a lot of risk to make literally no money. Seeing how you had another bid for $25k, why not just let that guy have the job and save yourself the potential headaches?? I wouldn't take this kind of risk for myself- yet alone for my "girlfriend's uncle"...........


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## PreferredResto (Aug 14, 2008)

Bob Kovacs said:


> So help me understand this- you're going to charge $24k for a project that you've determined will cost you $22,430, so that leaves a whopping $1,570 "profit". From this, you have to pay your "foreman" who gets "a cut of the profits"- even if you gave him the whole $1,570, that's pretty weak for a full week's work for him, don't you think?
> 
> Now, this also assumes that everything goes exactly according to plan- what if it rains for three days and you run over on the trackhoe rental? What if it takes 16 dumpsters? What if it takes $14k worth of dirt to fill the basement (btw- where's the compaction equipment and labor for that fill installation????)? What if your "experienced" $15/hour "operator" accidentally knocks over the portion of the building that's supposed to remain? What about your insurance costs?
> 
> Sounds to me like you're taking a hell of a lot of risk to make literally no money. Seeing how you had another bid for $25k, why not just let that guy have the job and save yourself the potential headaches?? I wouldn't take this kind of risk for myself- yet alone for my "girlfriend's uncle"...........


 

I think those are all valid though my estimate above was in my mind worst case scenario. Her uncle is paying to disconnect the utilities so im not out the plumbing fees. I am 90% certain i can get eh dirt for free which representd 12k of the above estimate. On top i "think" I need 10 dumpsters and i budegets for 12. The hoe operator isnt a 15$ per hour guy he is an experienced operator that runs heavy excavation equipment for a living full time job. In my mind the acutal cost of the job will be around 15k to me. so there should be 9k in profit. I am trying to see where my numbers are off and im waiting for someone to say hey what about the epa llllblah blah blah thats 20k. THen bam ill understand why guys are bidding this at 47k and i think i can do it for a third of that. I am taking the job as a favor and also as a possible entrance into a new area. 

I guess i didnt think about compaction equipment. I may need to look into that cause that could be a cost that wasnt planned.


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## tool junkie (Jan 30, 2008)

ask to see the 25k bid in writing with a company name and license. I bet they cant produce it. Verify that its true before you sell yourself short. You'd be surprised how often the lowest bid is false or by some unlicensed handyman.


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## Patrick (Apr 12, 2006)

Can you please post the address of the hotel, and the start date, This may be entertaining to watch


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