Browse Forums Building A New House 1 Feb 28, 2019 3:38 pm Hi there Does anyone know what a fair and reasonable builders margin is, specifically in WA? We have been quoted 35% which I feel is too high. I have two good friends build recently and theirs was 20%. Where would I go to find out this information to have as proof when I approach the builder. Thanks! Re: Builders margin in Western Australia 2Feb 28, 2019 3:55 pm Arabla Hi there Does anyone know what a fair and reasonable builders margin is, specifically in WA? We have been quoted 35% which I feel is too high. I have two good friends build recently and theirs was 20%. Where would I go to find out this information to have as proof when I approach the builder. Thanks! I'm an estimator for a Perth Builder, Margin in confidential and would never be disclosed, I am assuming your talking about Variation Margin? Re: Builders margin in Western Australia 3Feb 28, 2019 3:59 pm Doozer1905 Arabla Hi there Does anyone know what a fair and reasonable builders margin is, specifically in WA? We have been quoted 35% which I feel is too high. I have two good friends build recently and theirs was 20%. Where would I go to find out this information to have as proof when I approach the builder. Thanks! Hi Arabla, I'm an estimator for a Perth Builder, Margin in confidential and would never be disclosed, I am assuming your talking about Variation Margin? Hey Doozer1905 Apologies I'm treading new water here but yep you are correct - the margin they make on variations. Thanks, I will update the title Re: Builders margin in Western Australia 4Feb 28, 2019 4:13 pm If its variation 20% in the contract I can nearly guarantee that would be BS, it's a lie, I don't know any builder that would actually do it for a 20% margin, I have worked for a few builders including 2 of the top 5 in Perth, and the margin is more like double the 20% they have stipulated. Where I am now we have a sliding scale from 15% through to 37.5% and stick by that. You have to realise that in that variation there is overheads i.e. administrators time, drafting & estimators time before any profit, 35% is reasonable in my opinion. I think your friends probably thought they were doing well, but I don't believe that margin would of been used Re: Builders margin in Western Australia 6Feb 28, 2019 8:56 pm No nothing to do with house size or value, it's more to do with what it is, high priced items (like Air Conditioning, landscaping, earthworks, swimming pools, retaining wall etc.) Would be a low margin, stuff like tapware, electrical, doors, would be at a high margin, in the end it's what your willing to pay, sometimes it's going to be cheaper after handover. What people don't also realise is the builders standard range items (like basins, sinks, tapware, whitegoods) are purchased at a much greater discount than items they don't purchase regularly, this is a real costing that I've just done to give you an idea. Vital double bowl sink RRP: $363 (builders standard range) Clark Punch Sink RRP: $319 (client wants to use this sink) So with these figures you would expect to receive a credit of $44 to go to the punch sink, but in fact the client was charged approx. $35, that's where you get clients getting annoyed, they think they are getting ripped off, which I do understand, you can't look at retail prices and compare, if its blatantly obvious that something doesn't look right by all means question it, you have every right to. Hope that helps Hi all, We are looking to build a new two storey house in western Sydney. Can anyone recommend a smallish builder to go with? We are trying to stay away from the big… 0 12042 Hello, we can help you please get in contact 0421019219 thank you 3 31765 I’m restoring all my 40yr old windows and I want to install seals around the casements. I’ve sanded back and oiled the frames with sikkens. My plan is to box up inside… 0 6486 |