Protocol & Performance

 Online Home Study

Day 8

PayOuts & Purchases (Part 1)


Day 9 - Straight Ahead! Let's Do This!

Welcome to our new Day 8 - Pay-outs & Purchases - Part 1.  The reason this is so phrased is that there is often quite a bit of ambiguity when you ask someone for a bid and he says “Two-Point-Five-Million-Dollars.”

Okay.  So he says that it will cost you $2,500,000.00 for his company to do your project.  Let us not even consider at this point what that may entail.  At least, at this juncture, it really does not matter what it is for, what’ is most paramount is that this is what you are being charged and this is what you are expected to pay. Period.  But this gives rise to a most outstanding question: “Why that much?”

Then here comes the other big inquiries: “How much will go towards ‘time & labor’ and how much will go towards what’ is needed” (accessories, equipment, electronics, incidentals, etc.)?

For sure, anyone can flash a quote or estimate of any denomination, but is it really accurate with respect to the costs/expenses for both “time & labor” and “what is needed?”  Is that really what it is going to take to get this project staged, prepped, underway, developed, and completed?  All in all, it may require only a cool million for the same expected results.

 "If 'Materials' are normally only 1/12 of potential needs for home improvement projects, why are contractors always saying 'Labor&Materials?' " A. Narrow thinking.

Payouts & Purchases (Part 1)

Please Study This Lesson In One Sitting 

 Separating the Costs of Labor from What’s Needed

What we want is clarity.  You see, a bid is more than just a “bid.”  Invariably, a bid is how much you are being charged for what is often erroneously abbreviated as “Labor & Materials.”  For sure, that is an over-simplification of what is prematurely being billed to your account.  It has NEVER been all about the “Labor & Materials.”  Granting, of course, the legitimacy of the “Labor” factor, “all else,” however, entail more than “Materials.”  So it may be necessary for us to really pick this thing apart to consider every cost and expense you would potentially be held accountable for.  Certainly, “what is needed” is comprised of more than “Materials.”

The 12 Basic Components to Home Projects (All Else/What's Needed)

Aside from the "Time & Labor" factor (Payouts), there is the "All Else/What' Is Needed” factor (Purchases which cumulatively constitute a separate category for expenditures to incur). This separate factor or category constitutes "The 12 Basic Components" (any or all items which, potentially, you will be billed for, as well  as aside from "materials").  These are respectively:

  1. Accessories
  2. Appliances
  3. Electronics
  4. Equipment
  5. Incidentals
  6. Legal Fees
  7. Materials
  8. Miscellaneous
  9. Rentals
  10. Services
  11. Supplies
  12. Tools

So really, “Materials” constitute only 1/12 of the “what is needed/what else can be needed" category (any combination of which are always part of purchases you will be responsible for  in the process of fulfilling your home project).   This being the case, although someone may be well-meaning saying it, they are really not telling the truth or being realistically specific with respect to what you are actually expected to PURCHASE.  In light of this actuality, what you may want to do is step back and take another look at the situation.  Stop!  Look!  Listen!

STOP long enough to notice that you are not ready to pay a dime on anything you cannot clearly see.  The reason is that what you cannot see clearly is something you cannot clearly manage since you can only manage what you can clearly see (poetic license).

LOOK with the eyes of an eagle and see that there is need to modify the vernacular of what is being said to something which is more relative to reality and plainly understood.

LISTEN.  You can then start with defining costs/expenses for “Time & Labor” as “PAYOUTS” and those for “What’ Is Needed” as “PURCHASES.”

*Research Links:

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End of lesson for Day 8 – Payouts & Purchases – Part 1

Tomorrow: Day 9 – Payouts & Purchases – Part 2

This free crash course transitions from evening to evening allowing an approximate 24-hour window for studying and researching.  It is understood that most online participants work during the day and do most of their personal internet activity during the evening.  Whether or not "day-shifting" applies to you, as well, it is certain you will not miss a single one.  Pass the word!  Stick around!  GO THE DISTANCE!

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Whom can flash a quote or estimate on your home project?

Are all initial quotes or estimates accurate?

Since there's more than "materials" entailed for all else which can be acquired/purchased for your home project, how many other potential items (aside from time&labor) can your home project include?

What percentage of "all else" entailed/purchased in home projects is "materials?"


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