Browse Forums Building A New House 1 Mar 14, 2022 12:36 pm I'm building with Better Built Homes. During the tender process I was told the builder's margin is similar to others at around 20%. Now that I received the HIA contract, it says 30%. That sounds quite high to me. Wonder what margin % do other builders charge? I was told Mojo and many others are 20% and bigger ones like Metricon is 25%? Re: Builder's Margin BBH 3Mar 14, 2022 7:38 pm ThisYear I'm building with Better Built Homes. During the tender process I was told the builder's margin is similar to others at around 20%. Now that I received the HIA contract, it says 30%. That sounds quite high to me. Wonder what margin % do other builders charge? I was told Mojo and many others are 20% and bigger ones like Metricon is 25%? Thisyear 30% is very high. Also if you haven't already signed, hot tip is to try and see some of BBH's builds that are under construction, preferably at frame stage. Cheers Simeon Architectural Homes & Duplexes - specialising in custom designing homes to your budget Get a Free Onsite Consultation Today or send a PM for information, questions or advice. Re: Builder's Margin BBH 4Mar 15, 2022 9:06 pm When I first saw the 30% I was also a little shocked. Despite that, it was almost $100k lower than the Hall and Hart (like for like). We sent our build and cost details to H&H, which then went to the guy at the top - who then straight out said that they could not match that. However, worth noting that H&H had better brands (white appliances etc) and inclusions for certain things. A like for like with Eden Brae was quite similar. Not sure what the profit margin is but the Eden Brae's sales estimate worked out to be ~$25k cheaper. Re: Builder's Margin BBH 5Mar 16, 2022 5:59 am Speakers When I first saw the 30% I was also a little shocked. Despite that, it was almost $100k lower than the Hall and Hart (like for like). We sent our build and cost details to H&H, which then went to the guy at the top - who then straight out said that they could not match that. However, worth noting that H&H had better brands (white appliances etc) and inclusions for certain things. A like for like with Eden Brae was quite similar. Not sure what the profit margin is but the Eden Brae's sales estimate worked out to be ~$25k cheaper. Speakers They aren't making 30% across the board. This figure is just on variations, real initial margin would be much lower to get customers in the door and then they make serious money knowing that most people upgrade lots of things once in the system. From my own personal experience having been to building sites of both H & H and BBH, H & H spend a lot more money on their carpenters and I have to say, along with Fowler are the most impressive project home builder in terms of not taking shortcuts on their structures. So I can understand why H&H were pricier. Every column had 4 dynabolts not 2, bottom plates were dynabolted to the slab at 600mm centres with washers ( rather then machine nailed), every service hole was immaculately cut, there were no brackets missing in voids, studs were screwed to columns correctly. Just really neat clean work with all the details right. Repeating myself I know, but I think we need to give a shout out to the project builders who are doing it right. As I have said before we were invited to a Fowler home which was almost at lockup stage last year ( the client wanted to do an extension and fowler couldn't do it) and my partner and I went over every detail to see if we could pick a mistake. We couldn't find anything. Absolutely immaculate work and attention to detail. Thats my 2cents. Off to work Simeon Architectural Homes & Duplexes - specialising in custom designing homes to your budget Get a Free Onsite Consultation Today or send a PM for information, questions or advice. Re: Builder's Margin BBH 6Mar 16, 2022 7:55 am Yet another good post Simeon, just one of many. You get what you pay for and builders such as Fowler and H&H have no qualms about their clients having private inspections. What better way is there to validate their professionalism and respect for their clients? 3in1 Supadiverta. Rainwater Harvesting Best Practice using syphonic drainage. Cleaner Neater Smarter Cheaper Supa Gutter Pumper. A low cost syphonic eaves gutter overflow solution. Re: Builder's Margin BBH 7Mar 16, 2022 2:22 pm Fowler seems to get raved a lot about its build quality. Too bad its contract terms are one of the worst among major builders and are doing their construction team a disservice in gaining customer's trust. Re: Builder's Margin BBH 8Mar 16, 2022 5:45 pm Never had dramas when we built! it was done well ahead of time and great quality work. Site supervisor was transparent and invited us to look at all things and to also get a independent check done fo poeace of mind. Couldnt fault! Re: Builder's Margin BBH 9Mar 16, 2022 9:10 pm Ashington Homes Speakers When I first saw the 30% I was also a little shocked. Despite that, it was almost $100k lower than the Hall and Hart (like for like). We sent our build and cost details to H&H, which then went to the guy at the top - who then straight out said that they could not match that. However, worth noting that H&H had better brands (white appliances etc) and inclusions for certain things. A like for like with Eden Brae was quite similar. Not sure what the profit margin is but the Eden Brae's sales estimate worked out to be ~$25k cheaper. Speakers They aren't making 30% across the board. This figure is just on variations, real initial margin would be much lower to get customers in the door and then they make serious money knowing that most people upgrade lots of things once in the system. From my own personal experience having been to building sites of both H & H and BBH, H & H spend a lot more money on their carpenters and I have to say, along with Fowler are the most impressive project home builder in terms of not taking shortcuts on their structures. So I can understand why H&H were pricier. Every column had 4 dynabolts not 2, bottom plates were dynabolted to the slab at 600mm centres with washers ( rather then machine nailed), every service hole was immaculately cut, there were no brackets missing in voids, studs were screwed to columns correctly. Just really neat clean work with all the details right. Repeating myself I know, but I think we need to give a shout out to the project builders who are doing it right. As I have said before we were invited to a Fowler home which was almost at lockup stage last year ( the client wanted to do an extension and fowler couldn't do it) and my partner and I went over every detail to see if we could pick a mistake. We couldn't find anything. Absolutely immaculate work and attention to detail. Thats my 2cents. Off to work Simeon Great post! Always interesting to get a different perspective (with more insight). I tend to agree that you get what you pay for. In my case, we ended up giving up a little (?) on quality for other things. I have no idea about all the technical stuff, but I hope that it'll be structurally sound over the long term. 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 20425 Hi, did you get any money from insurance? if you did, does it match what you've already paid the builders? 3 9571 |