Browse Forums Building A New House Re: Cost Plus contract Margin in NSW 2Apr 13, 2023 5:23 am Mito Hi, I'm looking to do a custom build on a cost plus contract. What's a typical margin these days? Build has asked for 15% Is there a point in trying to negotiate them down? Thanks! Hi Mito It comes down to the value of your build, ie the builder should be making enough money to cover the costs for at least 12 months to ensure they have allocated enough time and resources to properly oversee your build. A typical build here in Sydney costs us roughly around $150,000 to manage over a 12 month period, in wages and overheads ( insurance, fuel, cars, tools etc). With our model we do allocate a fair amount of manpower and try to have someone visiting sites most days to pick up on any issues. So my advice would be, look at your total expected contract value, apply the proposed margin and if the total expected gross sum of the margin is low then ask your builder what resources they have allocated, and it its too high ( say you are doing a $3m build) then try and negotiate. But generally, from what I am hearing in the market place, 15 - 20% is fair. In fact we just got offered a cost plus at 20% which we are considering doing. I hope this helps 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: Cost Plus contract Margin in NSW 3Apr 13, 2023 10:05 am Alternatively, you can sign a contract with pre-defined known amount you pay to the builder for management and warranties and then you just pay the invoices their provide you. But you should be experienced in building to understand what they are charging you for and ask right questions, otherwise you will simply be ripped off. Considering there is not much motivation for the builder to give you discounted prices and look for better quotes, you will likely to end up with pretty overpriced house and some unethical builders will still try to screw you getting kickbacks with the vendors and trades. You should be constantly aware of the latest prices and costs, double check all material prices and labour rates, obtain second/third quotes for every job, etc. It is almost same as you would build your house as owner builder and use your builder as a project manager. 1000000% definitely add insulation. I have in my home and it makes a big difference minimising sound transfer. Insulation is pretty cheap and definitely worth it 2 6301 We are building a house that was planned to be clad in Hardie Linea, our builder has now requested to swap this for BGC Nuline Plus. They look fairly similar and he has… 0 652 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16691 |