Browse Forums General Discussion 1 Oct 24, 2018 11:06 am We almost have the Construction Certificate and are ready to employ a builder for a small extension at the rear of our property. We have been getting a few quotes. The last builder to come was an older guy, with many years experience. He is going to provide a quote, but also suggested the possibility of employing him on an hourly rate. This hadn't crossed my mind, and could have benefits. I'm definitely hands on and will be getting involved wherever I can, so I can see that any time I put in, will be less time I have to pay him at his hourly rate - even if this is just cleaning/clearing up the site on a regular basis. Does anyone have experience in getting an extension built this way? What would be the drawbacks? I guess there is the possibility that he might take his time and draw the process out to become expensive on my part, but then I'm sure he has plenty of work (it's Sydney), and would just want to get the job done and move on to the next one. Re: Employ Builder on Hourly Rate? 2Oct 24, 2018 2:59 pm Hi RydeReno Welcome to the forum Seriously I wouldn't go down that path Plan the project properly, work out how long it will take and get a fixed price for each element/trade BTW Some photos would help Cheers Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Employ Builder on Hourly Rate? 3Oct 24, 2018 4:06 pm Thanks StructuralBIMGuy, What's your reasoning for not going down that path? Are you saying I'm likely to come in cheaper if I get a fixed price for each trade? I'm not owner builder, and I do have a full time job, so my availability to run things would be limited - me helping out on site would mostly be weekends. Re: Employ Builder on Hourly Rate? 4Oct 24, 2018 7:18 pm It's best to know what is a fair price and fix it Work is often delayed during construction and you won't know that while you are at work Also you don't want to be charged for times trades aren't there working, I apologise for not being that trusting Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Employ Builder on Hourly Rate? 6Oct 25, 2018 12:47 am StructuralBIMGuy has the point. You won't be able to properly control what they are doing and how quickly, therefore, hourly rate will be a problem for you. Also, builders do not charge hourly rates, they charge margin on top of labour and materials provided by their labourers/tradies. You would only know the true margin if you go on a cost plus contract arrangement (aka open book) with the builder. Re: Employ Builder on Hourly Rate? 7Oct 25, 2018 7:21 am A friend of mine did a fairly large renovation like this and the builder was open book about all the costs - it turned out well. But he had a very good trusting relationship with the builder. I can see the advantages, but personally I wouldn't do it unless I trusted the builder implicitly Re: Employ Builder on Hourly Rate? 8Oct 25, 2018 7:26 am alexp79 Also, builders do not charge hourly rates, they charge margin on top of labour and materials provided by their labourers/tradies. Good point, The quicker the trades finish the quicker the builder gets his profit margin Quick unskilled trades often take short cuts, leave things out, the work is non compliant and some builders don't seem to care. Plan wisely as you will need to be on top of it, Forewarned is forearmed..hth Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Employ Builder on Hourly Rate? 9Oct 25, 2018 8:11 am The inherent problem with employing the builder (or anyone else) on an hourly rate is that it is an open cheque and the issues of control and productivity. How are you going to monitor hours worked? How do you ensure acceptable productivity? If you can answer that then it may be a viable option for you. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Employ Builder on Hourly Rate? 10Oct 25, 2018 9:09 am You need to start with a 3D Sketch Try 3D Sketchup or 3D BricsCAD Shape please post up a model so I can help with data and planning Knockdown and rebuild upgrade Costs Cheers Chris Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Employ Builder on Hourly Rate? 11Oct 25, 2018 10:19 am Thanks brokenstick - that's more what I'm after, just past experience on how it went. I understand the trust issues, possibilities of open cheque. But even with fixed contract, how fixed is 'fixed', and no matter which route, there is the possibility of builder employing labourers/unskilled tradies. The guy I might be using is a carpenter/builder, so will be doing the framing himself, but being the builder and using his contacts for the other trades. I already have other 'fixed' quotes to compare. So if I do the research and find out 'time for excavation', 'time for foundations', 'time for rough plumber/sparkie' etc - I should be able to work out whether his hourly rate is going to come in under or over 'fixed price - correct? Plus this isn't as complicated as a full construct, as I'm only getting him to take it to 'Lock-up' stage. Re: Employ Builder on Hourly Rate? 12Oct 25, 2018 10:35 am RydeReno No, Your build is not complicated it's "Click & Drop" LOL, I saw complicated the other night at the Optus Stadium BIM Presentation Where Engineers were 3D scanning onsite, designing and robots fabricating components in china..all at the same time Planning,Data & Optimisation was the key Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Hi Mofflepop, I would recommend finding a building designer to prepare plans, they should design to your specified budget. The benefit is you can tender the project out… 9 20188 Anthony Firstly, wow you have put a lot of work into your list of questions! Great job and they are mostly valid questions that a builder should be able to answer. As… 14 10673 |