Browse Forums Building A New House 1 Jun 17, 2014 1:48 am Hi, I have plans drawn up and ready for approval. I have selected a builder. It is a timber framed house on stumps so he will be doing the bulk of the construction work. He asserts a hourly rate contract is going to work out fairer and cheaper for all concerned, as opposed to a fixed price. That sort of makes sense because a fixed price will have contingency $$ costed into it. Alternatively there is potential for cost blowouts on a hourly rate. It is a flat level block and should pose no surprises. The builder seems on the level. I would love to hear opinions and experiences on this - flat rate or hourly? cheers, Bill Re: Flat price or hourly rate? 2Jun 17, 2014 7:45 am I wouldn't go for hourly rate. Who knows how long the builder will take to finish his job for a start. Also, he should already have some idea of how long it will take for his parts. So most likely you'll be expecting blowouts. You can try read other threads on this forum and will notice that you rarely see any build finish early. Also, as with hourly rate, how are you going to compensate for anything that's not up to standard and need fixing? Or any extension needed because of weather, etc.. If it is under ideal situation, hourly rate might be cheaper but who knows. Re: Flat price or hourly rate? 3Jun 17, 2014 8:26 am I also would not go an hourly rate the job could drag on indefinitely Re: Flat price or hourly rate? 4Jun 17, 2014 9:10 am A builder going to build your new home under an hourly rate ? ... sends shivers down my spine. So is he going to adjust the hourly rate on days when work is going to run at a snail's pace ? I'd be avoiding hourly rates totally on a big job like building a house, as there's so many things can cause you major blowouts on costs. Owner Building at Jimboomba Woods in Logan City Qld. Blog : http://bandlnewhomebuild.blogspot.com H1 thread : viewtopic.php?f=38&t=68283 . Re: Flat price or hourly rate? 5Jun 17, 2014 11:22 am Um... just no. This isn't getting a handyman out to put up some shelves for you, it's a massive investment for an entire home. Protect yourself and only get a fixed price, otherwise walk away and find someone else. Completed a knock down and rebuild in northern Melbourne. Handover completed 27/09/2013 and now moved in. Re: Flat price or hourly rate? 6Jun 17, 2014 8:29 pm I have a couple of blokes who do carpentry work for me on hourly rate. I know they are slow and at the end of the day they will cost more to do the job than if it were done on a metreage rate. But I know I dont have to check there work or get them back to fix anything. We're building high end custom build homes that require a high end finish, if you are after that quality of finish and are confident the builder is going to deliver then hourly rate may be the way to go. If not get a fixed price and hold them too it, if the builder cant give you that then i'd suggest hes not the one you want building your house. I would suggest you simply go and talk to council about your proposal, most councils are getting onboard with ancillary dwellings. There is no benefit in keeping it… 1 4106 I think I know the answer but just checking to see if anyone has had experience with it. I want to build a small 20 square metre retreat in my backyard, it will have a… 0 13890 Any advice on how to ensure the kit home granny flat that im thinking of buying will get council approval. The kit home companys wont release plans without a deposit and… 0 7213 |