Hi all,
I am from Melbourne.
I am looking to custom build a single story home for the flexibility of inclusions and supposedly better workmanship. I am planning on getting the working plans, and soil tests done so I can present to 3-4 smaller builders for an accurate and competitive quote. Would this be the best way to approach this?
A builder I spoke to proposed an item of 'cost plus' contract where I get sent an invoice for the costs incurred+ 20% builder's margin added on top. This seems to me, like a way to safeguard the builder in case sh!t goes wrong as they're unable to give a confident quote. Alternatively, would this be a good way to save costs as it seems to be a transparent process but also unknown at the same time. For example, it would be hard to verify the labour hourly costs and unexpected expenses.
Does anyone have any recommendations for reputable smaller builders, or trustworthy cost-plus contract builders?
TIA!
How to get the best value in custom build
Page 1 of 1
We are just finishing a cost plus build, generally the process was very transparent, we received three quotes (generally) for each trade and we chose based on recommendation/price etc.
I had 5 quotes for cabinetry that I arranged (two through his recommendations and the others through me), we had a lot of cabinetry so it was important to know the quotes were competitive.
The only issue we had was that we used his carpenters and as you suspected there was some concern about the work being undertaken by them and the time spent doing the work. In hindsight we should have had home provide us with a quote for frame stage and fix out stage.
We certainly saved some $$$ doing it this way.
Our builder gave us an indication of what each trade would cost to give us an overall budget.
We allowed an additional 100k for unexpected costs and used it all, but still came out in front compared to full quotes (saved approx 200-300k).
We are in Sydney so cant provide recommendations, but one piece of advice we didn’t pay any where near 20% margin
I had 5 quotes for cabinetry that I arranged (two through his recommendations and the others through me), we had a lot of cabinetry so it was important to know the quotes were competitive.
The only issue we had was that we used his carpenters and as you suspected there was some concern about the work being undertaken by them and the time spent doing the work. In hindsight we should have had home provide us with a quote for frame stage and fix out stage.
We certainly saved some $$$ doing it this way.
Our builder gave us an indication of what each trade would cost to give us an overall budget.
We allowed an additional 100k for unexpected costs and used it all, but still came out in front compared to full quotes (saved approx 200-300k).
We are in Sydney so cant provide recommendations, but one piece of advice we didn’t pay any where near 20% margin
We are just finishing a cost plus build, generally the process was very transparent, we received three quotes (generally) for each trade and we chose based on recommendation/price etc.
I had 5 quotes for cabinetry that I arranged (two through his recommendations and the others through me), we had a lot of cabinetry so it was important to know the quotes were competitive.
The only issue we had was that we used his carpenters and as you suspected there was some concern about the work being undertaken by them and the time spent doing the work. In hindsight we should have had home provide us with a quote for frame stage and fix out stage.
We certainly saved some $$$ doing it this way.
Our builder gave us an indication of what each trade would cost to give us an overall budget.
We allowed an additional 100k for unexpected costs and used it all, but still came out in front compared to full quotes (saved approx 200-300k).
We are in Sydney so cant provide recommendations, but one piece of advice we didn’t pay any where near 20% margin
I had 5 quotes for cabinetry that I arranged (two through his recommendations and the others through me), we had a lot of cabinetry so it was important to know the quotes were competitive.
The only issue we had was that we used his carpenters and as you suspected there was some concern about the work being undertaken by them and the time spent doing the work. In hindsight we should have had home provide us with a quote for frame stage and fix out stage.
We certainly saved some $$$ doing it this way.
Our builder gave us an indication of what each trade would cost to give us an overall budget.
We allowed an additional 100k for unexpected costs and used it all, but still came out in front compared to full quotes (saved approx 200-300k).
We are in Sydney so cant provide recommendations, but one piece of advice we didn’t pay any where near 20% margin
Did abit of research and the VBA states that cost plus contracts aren't allowed unless the project is 1mil+. Additionally, how would you get a loan for this sort of contract?Builder told me 20% margin is the norm and fixed priced contract usually has a higher margin built in for unexpected costs?
Related
2/03/2024
0
Hi, as per the subject. Does anyone have any recommendations for the best value decking oil (Bunning is close to where I live) for a treated pine deck? Thanks
31/01/2024
2
The last home I lived in didn't have a pool and when i went to sell it the agents were not happy, even telling me to put one in to sell the place. The agents weren't happy…
15/01/2024
3
As a tradesmen get a private inspector although I don't think there worth it in their profession themselves the reminder they serve to the tradesmen doing the work is…