How does Billdr make money?

Billdr is a home renovation and construction marketplace where we believe that transparency fosters a healthier and more competitive environment, benefitting both homeowners and general contractors.

As the company grows, people often ask us, “How does Billdr make money?” We hope to shed more light on our business model by offering a three-part answer to that question based on revenue generation, competitive pricing, and contractor service fees.

How does Billdr generate revenue?

Billdr’s network is made up of general contractors who have brought forth 600 homeowners’ renovation dreams with projects across Montréal, Toronto, and Chicago. Our primary source of revenue comes from services that we charge homeowners and general contractors.

Service fees charged to homeowners

On the homeowner side, we charge for project planning (from $200 to $500), project management (from $1,000 to $3,500), and architectural design services — depending on the size of the project and the scope of work.

These fees help cover the amount of time our project managers spend accompanying homeowners during their renovation journey. With their in-depth knowledge of construction, project managers are in a unique position to advocate for homeowners’ needs and guide them every step of the way. This kind of support helps us meet homeowners’ expectations, creating a better experience than if they were to handle the project on their own.

Service fees charged to general contractors

General contractors have access to Billdr’s semi-automated tools and pre-qualified leads when they join our network. We only charge them a service fee of 6.5% on their transactions once they are assigned to a homeowner’s project through the Billdr app. This service fee includes a customized portfolio, pre-built quote templates, easy payment processing, client support during the project, status reports, and help with scaling the contractor’s business.

How can Billdr ensure competitive pricing?

Billdr uses independent and accurate estimates, open calls for quotes, and a detailed scope of work to promote competitive pricing.

Independent and accurate estimates

Billdr provides homeowners with independent budgetary estimates that break down the cost of their renovations before receiving quotes from general contractors. This estimate serves as a point of reference for homeowners to ensure that pricing is reasonable and within their budget.

We hold ourselves accountable in terms of the accuracy of our estimates. As we complete more and more projects through our platform, we’ve refined our process to provide homeowners with an estimate that is 90% accurate (meaning it could vary by more or less 10%).

Two-to-three quotes from contractors

Once homeowners are ready to move forward, their project is shared on Billdr’s app, so our network of vetted and certified contractors can start sending in their quotes. Depending on the size of their project, homeowners then receive two-to-three comparable quotes.

Since homeowners have access to an independent estimate for their renovations, they already understand what each item should cost. Because homeowners know what to expect in terms of pricing, they’re empowered to make better financial decisions when reviewing proposals. On the flip side, to win the contract, general contractors are incentivized to provide the best possible quote that is aligned with the homeowner’s budget and expectations.

Detailed scope of work

To fully understand the homeowner’s vision and budget, a Billdr project manager will take the time to discuss all the details during the planning phase. They will then develop a detailed scope of work that minimizes changes down the line.

Through Billdr’s platform, general contractors also have access to this detailed scope of work. The latter has an itemized list of tasks. This document provides a clearer understanding of what a project involves, which helps contractors better assess and mitigate potential risks. Contractors also receive 360-degree videos of the home, to provide quotes faster without having to do a visit themselves. Knowing exactly what needs to be done allows them to be more accurate and competitive with their pricing. 

To provide the best service in the market, Billdr is incentivized to ensure that the costs for home renovation projects on our platform are not more expensive than those offered by licensed contractors outside of the Billdr network.

Why does Billdr charge contractors a 6.5% service fee?

To understand how we came up with the 6.5% service fee, we need to recognize how the average general contractor in the residential sector prices their projects and what they get from working with Billdr.

Breaking down the math

In the residential sector, general contractors will aim for 20 to 25% profit.

In addition, a general contractor can charge 10-15% to include administrative fees, covering time spent on:

  1. Scoping and quoting a project 
  2. Managing their subcontractors and employees on a construction site
  3. Managing their billing and payment processes
  4. Managing potential change orders that could occur midway through the project
  5. Cleaning the construction site
  6. Allocating a budget for potential redos 

Benefits for contractors within the Billdr network

General contractors partner with us because we help them be more efficient off-site. By joining the Billdr network, they:

  1. Have access to pre-qualified customers and projects with a detailed scope of work that’s already been prepared, slashing time spent on lead generation
  2. Spend less time (up to 80%!) quoting a project thanks to semi-automated tools in the Billdr app
  3. Increase their efficiency by focusing on project execution while Billdr project managers offer additional support for homeowners’ requests and unexpected on-site events
  4. Reduce workload related to administrative tasks, such as billing, payment receipt, and weekly progress reports

Since Billdr can cut down costs related to those tedious tasks, general contractors can free up their schedule for more revenue-creating operations for the low fee of 6.5%. In return, contractors receive time-saving services and extra support, which helps them cut down project management hours. 

Billdr’s mission is to make home renovations simple, transparent, and efficient for everyone. Part of that process is providing clarity on how the company generates revenue, creates a competitive marketplace, and offers services to both homeowners and general contractors.

Ready to tackle your home renovations?

Book a call with a Billdr project manager to get a defined project scope, budget estimate, and two-to-three comparable quotes from certified contractors.