Why small reno jobs can cost so much (ft. cost of foreign workers)
Always remember, the main cost is always labour, and often towards these more-than-expected costs of foreign workers.
Watch our tiktok video on this if you lazy to read.
Sometimes, you have small renovation jobs (eg. paint this wall, install bathroom accessories etc.) that you request quotations for, and you get stunned by the quote provided by some firms.
For example, how can hiring someone to paint one wall in my house cost $300??
We are 100% not saying these firms should do so, but we wanted to share the other side of the story.
Often, these renovation firms hire foreign workers to help them with such tasks.
These firms might price based on the opportunity cost of these foreign workers, rather than the nature of the task.
Each foreign worker costs ~$3,000 per month to hire today (2023), or $125 per working day. Below is the breakdown.
Source: Deconstruct
Levy for basic-skilled workers costs $950.
Source: MOM
Dormitory costs around $550 a month.
Source: CNA
Not so long ago, this used to cost $350 to $400.
Source: CNA
Wages cost around $700 per worker.
On top of this, businesses cover other costs such as food, transport, insurance etc.
This is how each foreign worker costs ~$3,000 per month, even though their wages might not be close to that number.
Now, imagine that you are the business, how will you price for jobs that require your foreign workers, knowing they cost you $125 per working day?
Furthermore, many of these jobs take more than 1 foreign worker.
This is why sometimes small jobs can cost such larger-than-expected amounts.
Some might argue, “hey, they cover back these costs through other means, like marking up renovation projects!”
True! That is why these adhoc renovation jobs tend to be “free” for clients who renovated their whole place, but cost so much more for standalone small projects.
Hopefully this sheds some light on why some firms might not be as greedy as you think. Business costs can be so much more than what people assume, and spiralling costs certainly do not help both consumers and businesses alike :(
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