Where Does All The Money Go?

When you first begin researching your home remodeling project, you may be surprised to learn how much capital it takes to complete your project. The cost of your project can be broken down into three categories: cost of materials, cost of labor, and designer fees. It is extremely important to note that you are not just simply paying for the labor of the installers. You are paying for the years if not decades of expertise, the thousands of dollars’ worth of tools, a work truck and the guarantee that the work will be done right.Very Expensive Kitchen Countertop

While it’s true that doing the project yourself would save on cash, one must also weigh the cost of time, installation mistakes as well as lack of design expertise. Put simply, you don’t know what you don’t know. By working with a professional designer that will oversee an expert installer, you are bound to save yourself months of time and greatly increase the quality of your finished project. When you factor in all of this, remodeling doesn’t exactly seem that expensive.

The question then is, what is all of this money going towards? The following represent the factors that go into the remodeling cost, from largest to smallest:

  • Cabinetry
  • Installation (Labor)
  • Appliances and ventilation
  • Design fees
  • Countertops
  • Flooring
  • Lighting
  • Other miscellaneous materials (hardware, plumbing fixtures, etc.)

Unsurprisingly, materials pack the most punch, coming in at the top of the list, followed by labor. Besides the factors mentioned above, there is another part of the equation that makes labor so expensive.

The law varies by state, but in Missouri, workers’ compensation insurance is required for any business with one or more employee that operates within the construction industry. Workers’ compensation insurance can be quite expensive. For instance, roofers’ insurance rates can range between $24 to $80 per $100 spent on payroll. So, a paycheck of $1,000 can cost the employer an additional $800 in workers’ compensation insurance. To put that into perspective, a clerical workers’ compensation rate hovers around $0.33 per $100 of payroll.

Insurance rates for construction employees are so high due to the nature of the business. Work-related injuries happen quite frequently, and workers’ compensation protects the employee against lost wages due to workplace mishaps. It helps to know that the people working on your remodeling project are well-taken care of, and if anything does go wrong, they are financially sound.

We hope we have answered your questions partially, if not in full. If you are in the Greater Saint Louis area, we encourage you to reach out to us to ensure you receive expert installation, best in market exclusive products as well as the best design possible.

Home | Contact Us | Our Services | Gallery