New home - builders margin?

Chipstick · Sep 03, 2017 6:05 pm

Hi there

Our contract shows 27 per cent builder margin. This seems high to me based on when we built 6-7 years ago. Could you let me know what your builders margin is, or what you consider reasonable?
We are building custom in Sydney.
Thanks

brucefil2011 · Sep 03, 2017 6:40 pm

the std hia margin is 25%

alexp79 · Feb 27, 2018 12:54 am

Depends if you build on fixed contract or cost plus. I would say anything below 15% is reasonable if you build on a cost plus. I really doubt they will provide you a complete breakdown for a fixed plus contract, so even if they say 25% - it is hard to check, unless you go cost plus and get quotes from multiple contractors/vendors.

brucefil2011 · Feb 27, 2018 7:51 am

Chipstick

Hi there

Our contract shows 27 per cent builder margin. This seems high to me based on when we built 6-7 years ago. Could you let me know what your builders margin is, or what you consider reasonable?
We are building custom in Sydney.
Thanks

Standard for volume builders is 25%

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icat2000 · Feb 27, 2018 9:37 am

Mine was 20% however smaller regional builder.

Dr.Buildwell · Apr 25, 2018 9:15 pm

20-25% is standard for a fixed price or cost plus contract.

Cost plus contacts aren't as common but the ones I have worked on have been around 20-25% builders margin then the architects cut which I believe was around 20% as well