Fence Installation Cost: The Best Way to Estimate

Fence installation cost will range from $65-$86/Post. Most people in the fencing industry like to price fencing by the linear foot (LF). However, if an owner requires spacing of posts every 4’ instead of every 8’, the price for each post would double because though the pickets/panel quantities (by the LF) may remain similar, now you have double the posts (materials and labor), which is often the most expensive part of fencing!. For this reason, I prefer to evaluate installation cost by the number of posts. Furthermore, in this article, we’ll look at how we determined our pricing and how you can build fence installation estimates yourself using 4 simple steps.

4 Steps to Determining the Cost of a Fence Installation

Table of Contents

Accurate Formula to Quote Fence Installation

In all of my articles one of the first things I discuss is the importance of qualifications. For example, when a contractor delivers bids or sets a budget, as I am doing here, we must first clarify what is, and what is not, included in the pricing. Therefore, I have included a few qualifications below.

• Includes labor rates in Texas at the time of this post.
• Includes cost of fence installation only. Excludes costs for equipment, materials, and consumables.
• Includes cost for posts 3’-4’ in depth.
• Assumes concrete footings with 6” of drainage rock material at each post.
• Assumes maximum fence height of 8’.
• Excludes costs for gate installation.
• Excludes costs for electrified fencing.
• Excludes coring through concrete or rock subgrade. Assumes setting of posts in organic soil.
• Excludes scanning for underground utilities.

Understanding the qualifications listed above, I have a simple formula I like to use to determine the cost of fence installation. First, we determine the number of posts. Subsequently, we must determine how much it will cost us to install 1 post and 1 panel. Lastly, we multiply the number of posts by the cost to install each post and panel, then we have determined our fence installation cost. As mentioned previously, the cost for each post and panel usually falls in the range of $65-$86.

(Number of posts) x (cost to install each post/panel) = (Fence Installation Cost)

4 Basic Considerations to Determine Fence Installation Costs

You can determine the cost of fence installation by factoring manhours, labor rates, profit, and size of project. Each of these will have a direct impact on the cost of your installation. We will dive into how these each of these impact pricing in the sections below.

1. Manhours
2. Labor Rates
3. Profit
4. Size of Project

Additionally, the type of contractor and the current economy will impact the cost.

First, the contractor type and size can impact the cost of a project. For instance, if you have a small contractor with a great reputation, they might charge more. The reason for this is fence contractors may not have enough resources to do all the jobs they’re being asked to do. Consequently, they charge more to maximize the profits on the fewer jobs they’re able to do.

Alternatively, if the contractor is larger, they might charge less, so they can keep their staff busy. These contractors focus more on volume and therefore often have lower fees to acquire more work. Next, if you have a smaller contractor without a ton of work, they also might charge less out of desperation for more jobs. 

All of these examples we discussed above are depend on supply and demand. Moreover, the busier (higher demand) a specific contractor or market is, the more they will charge as their time and resources are limited (low supply). In contrast, if the market is slow (low demand), resources will be in need of use (high supply) and will result in lower costs.

5. Type/Size of Contractor
6. Current economy

In the following sections we will discuss how each of the 4 basic considerations listed above can have an impact on the cost of an install.

3 Quick Steps to Calculate Manhours for a Fence Install

Merriam-Webster defines a manhour as “a unit of one hour’s work by one person that is used especially as a basis for cost accounting and wages”. Moreover, we will need to figure out how many workers and how long it takes them to complete each task. For the purpose of this guide, we are assuming two workers. The tasks are as follows:

1. Dig Post Holes
2. Pour Footings and Set Posts
3. Assemble Fence Panels

In my previous post, Cost of a New Wooden Privacy Fence, I provided a deep dive into all of the calculations of how to estimate the cost a new wood privacy fence. Furthermore, in this article I will be providing round (and more conservative) numbers for quick calculations. 

• Dig Post Holes – 2 workers @ 20 minutes/Post = 40 minutes or 0.66 manhour
• Pour Footings & Set Posts – 2 workers @ 30 minutes/Footing = 60 minutes or 1 manhour
• Assemble Fence Panels – 2 Workers @ 30 minutes/Panel = 60 minutes or 1 manhour

In conclusion, each post/panel would take roughly 2.66 manhours to assemble. These manhours are based on the assumptions made above, so if you are placing a fence post in existing concrete, drilling through rock, or require any scanning and locating of existing utilities, this number would not be valid. Nevertheless, we will use this number to calculate our cost below, so don’t forget it.

How Much do Fence Installers get Paid?

Similar to any profession, the time, experience, and location, of a worker as well as market conditions of a project impact how much fence installers make. Furthermore, at the time of my posting, Indeed says fence installers receive on average $17.66/HR in Texas. Still, I prefer to use an average rate of $22/HR because a contractor will typically build a crew with one more experienced worker, and one less experienced worker.

Total Manhours x Average Rate = Cost of Work

2.66 x $22 = $58.52/Post

How Much Profit do Fencing Contractors Make?

As mentioned above, many factors play into the final number such as the type and size of the contractor. For example, a larger company will have higher overhead costs such as accounting, marketing, insurance, office rent, etc. These factors would increase the final markup they place on the cost of a fence installation. Moreover, some contractors view the overhead and profit as “one bucket of money” while others may be more detailed and split this out. Nevertheless, Jobber indicates this cost could range from 20-55%, which is generally what I would have expected. I like to use 35%.

$58.52/Post x 1.35 (35% Markup) = $79.00/Post

How Much Is a Full Fence Replacement?

The pricing one might expect to pay for a full fence replacement is largely dependent upon the materials the owner wants to use. For example, if the owner wants a 6’ tall cedar wood privacy fence with 4”x4” wood posts, it would cost dramatically different from a 6’ tall cedar wood privacy fence with steel posts. Furthermore, I dove into all the costs for a full fence replacement in my post on Cost of a New Wooden Privacy Fence. 

Disclaimer

Clear Construction estimates does not take responsibility for pricing in this post being representative of your local market. You should do your owner research for your area. We have written this to provide a general understanding of how to estimate and prices shown above are not guaranteed. We have no sponsors or affiliation with the links provided.

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