subject: Installation Costs Of Replacement Windows - What Are The Real Numbers? [print this page] The installation cost of replacement windows can be significant, but there is a good reason why. If you think that installing replacement windows is just a simple process: measure old windows, remove old windows, put new windows in openings and POOF you are done, you should keep reading.
The installation package is probably the most critical aspect of your window replacement project and it should not be taken lightly. A good window installation will mean an overall higher cost of replacement windows for your project, but it will be money well spent. However, if you insist on saving a few dollars on the front end and get a bad installation, you could be looking at costs well beyond just the money you saved.
In order to understand installation prices and how they effect the cost of replacement windows, it is best to understand everything that goes into the installation so you can get an understanding of what the actual costs entail. While some window replacement companies may take the time to explain their process to you in detail, most will not.
(NOTE: This is generally not intended to be a deceptive act on the part of the window companies. Many companies just assume the customer understands all the ins and outs of the installation and how it ties to the cost of replacement windows for their project.)
Therefore it is up to you, the consumer, to educate yourself about the costs associated with installing replacement windows. This will help you better comprehend the bids you will receive from window replacement contractors and allow you to ask educated questions to determine the exact cost of replacement windows for your project.
The big picture
Do you want the truth about window replacement? At the core of it all the basic process noted in the first paragraph is true for everyone in the window replacement business. If you can't get those four steps right, you should not be in the business. However, it is the details within these four basic steps that set one installation company apart from another. Read the information below to get a detailed understand of what that installation price means when it is put on your table.
Measurements
Almost every window replacement company in the market will provide you a "free estimate" in which they visit your house, review the project, get some measurements and give you a price. This is a "free estimate" in the sense that it doesn't cost you anything if you choose not to buy the windows. However, if you do purchase the windows, you have paid for the estimate. (There is really no way around this and it is just a given factor in the cost of replacement windows.)
The window installation company factors this into their pricing in order to cover the cost of the personnel required to verify measurements. Having this personnel verify the measurements correctly and insure that everything goes well prevents the replacement window company from having to take back incorrect windows. A good window company will be ok with this cost because it is understood that added costs in this case also mean added value and a customer will be willing to pay for piece of mind.
The peace of mind for you is knowing that you have a professional at your house determining the best configuration for your windows. You are paying for the service that the professional provides in the hopes that he will deliver exact sizing and have a clean installation. If you are working with a well established, high quality window replacement company, this portion of the installation cost of replacement windows may be higher than "Chuck in a Truck" installers, but do you really want to skimp on getting the measurements right?
Labor
A good window installation crew is worth its weight in gold and a good window replacement company will pay to keep good installers with their company. The price of a quality installation team is what makes up a major portion of the overall cost of replacement windows as it relates to installation costs. The truth is it takes six months to a year for an installer to have a working knowledge of the process and become proficient at what they are doing. Window installers are finish carpenters, remodelers, engineers and customer service agents all rolled into one. A good installer who knows what he is doing could earn up to $20/hr which can add up if you have highly trained crews.
A good installation crew will benefit your project because they are knowledgeable about the process, they will insure that the window is properly installed, they understand the importance of insuring a good water barrier, and they will decrease the amount of time it takes to complete your window replacement project. Always consider the level of installation quality you are buying when figuring out the total cost of replacement windows. The extra money you spend up front on a high quality window replacement team will be returned in the satisfaction of a smooth, well executed project.
Materials
Aside from the windows themselves, there are other materials to factor into the cost of replacement windows. Interior and exterior trim are the major material items, however, shims, blocking, caulk, backer rod, fasteners, flashing tape, and paint are also required to complete the window project. Some installers will include materials as a separate line item on the proposal. Some will include it as a flat percentage of the total project price. Others will simply have it factored into the installation cost per window and it will be included into the overall price. Regardless of how a window replacement company figures it into your project, installation materials should be factored into the overall cost of replacement windows.
Material costs can become fairly significant for a medium to large size window replacement. Depending upon the trim, it could cost up to $2.00 a foot. This doesn't seem like a lot, but when you figure that you need 18 feet to trim out a 3' x 6' window, you are looking at $36 a window. Multiply that by ten windows and costs quickly add up. Caulk is another cost that adds up. Depending upon the size of the window you could need two tubes of caulk per window. High quality sealant can run over $3.00 a tube, meaning $6.00 per window just for caulk.
Many of the other smaller items (shims, backer rod, fasteners, flashing tape) aren't large expenses, but they do factor into the cost of replacement windows (let's face it, someone has to pay for them!) however, you should not expect these materials to make up a large portion of the installation costs. As a rule of thumb you should figure the basic materials needed to properly install a replacement window project should not exceed 5% of the total cost of the project. (As always this rule does not apply to custom trim or unique installation applications)
Tools
A wise man once said "you can never have too many tools". OK not really sure if that was a formal quote, but a good window installer lives and dies by that creed. A well equipped window installation crew could require a cache of tools in excess of $7000. This would include a table saw, miter saw, jigsaw, router, deglazing tool, reciprocating saw, nailing guns, finish nailers, air compressors, hammers, prybars, cordless screw drivers, caulk guns... you get the idea. The fact is if you were to choose to install the windows by yourself it would cost you a lot of money to be as properly equipped as the installation crews with most window replacement companies.
Now as a homeowner replacing your windows, you have no desire to buy the window installer a new DeWalt compound miter saw, nor should you have to. When we are discussing tools as a part of the overall cost of replacement windows we are not talking about you buying specific tools for the window installer. Instead the cost of replacement windows for your project helps to cover maintenance and replacement of the contractors tools. You are essentially paying to "rent the right" to these expensive tools for the duration of your window installation project. A portion of your installation price includes this cost, and is well worth it because having the proper tools on the jobsite insures a proper installation.
It is very difficult to quantify exactly what the "rental cost" of the tools would be. In addition, you will probably not be able to lower the installation price based on the "tool rental" being too high. Instead, use this information as knowledge to understand that there are factors such as this figured into the cost of the replacement windows package.
Liability Insurance
Liability insurance is a MUST for any window installation company. If your installer can not produce current documentation showing that they have current liability insurance, you do not want to let them set foot into your house... PERIOD. That being said, the cost of liability insurance is a major factor for any reputable window replacement company. The premiums vary greatly by location in the country, but contractors could easily pay over $20,000 a year for proper coverage.
This cost is obviously dispersed amongst all of the customers that the installation company services, but it is still a factor in the overall cost of replacement windows. Your window replacement project costs will include some portion of the cost of liability insurance, but it is money well spent. These few dollars that will be included in your project costs will save you hundreds if not thousands if something were to happen during your window replacement project.
Transportation
No need to spend a lot of time here. It costs money to fill up the truck to get the replacement windows and installers to your job site. As fuel prices climb, this cost does as well. Just a cost of doing business.
Overhead
Depending upon the size of the window replacement company you are working with, the overhead costs could be a larger or smaller factor in the cost of replacement windows for your project. Any good company will work to keep their overhead low and pass the savings onto the customer, but there will always be overhead costs in the price. Overhead for the company could include a warehouse to stage product, a showroom, and trailers in addition to the daily phone, internet, and working costs to run a business.
Just like the liability insurance, this is disbursed among all of the customers of the company so it will be a minor expense in your overall cost of replacement windows for your project.
Profit
Surprise! the goal of the window replacement company is to make money on your replacement window project. Why not? If they were in business just because they loved installing windows, you might want to have their head examined. There is profit figured into the cost of replacement windows for every project that any window installation company is completing. There is simply no way around it.
If you have a good installation company, when the project is done you will not care what the cost was because it was worth it. If the installation company takes care of you and your windows, you will be happy that they made a little money because you want them to succeed. It is in these times that you don't worry what the profit margin is for your project.
A bad installation company will make you feel ripped off instantly. If you receive poor service, defective product and installation, and zero follow up after the project is complete, you will begin to wonder exactly how much the company was making on you. If they didn't put the time in to take care of your project and they didn't provide the best materials they could, exactly how much of the cost of replacement windows for your project went straight into their pocket?
While it is difficult to say exactly what each window replacement company's profit margin will be, it is reasonable to believe that most companies will target a gross margin of 30% or better. This is a reasonable projected target for profit and should be about what the market will bear.
This is great information... now how do I use it?
The cost of replacement windows is going to vary from one part of the country to another so it is difficult to tell anyone with exact certainty what your specific project should cost. However, using the information above, you can make an educated decision when it comes to choosing a window replacement company for your project.
You should always get at least three bids from different companies when replacing you windows. This will give you a feel for what your market pricing is because these proposals SHOULD be relatively close to one another. In the event that
