Builders markup%

Lorri · Sep 07, 2016 10:23 pm

Hi just want to know what is the normal markup up for builder getting in a trade to do a job they can not do, We are having hydronics fitted with us supplying the items.
Cheers

SaveH2O · Sep 08, 2016 1:06 am

Usually 20% minimum.

Lorri · Sep 08, 2016 6:07 pm

Thanks, we didn't know there was such a thing as builders markup before we started all this, a steep learning curve for sure. But with help from the nice people on the forum we are getting there slowly!
Cheers

SaveH2O · Sep 08, 2016 8:55 pm

It has to be understood that such works can impact on the builder's time and scheduling. A lot of builders don't allow outside contractors on the site and that decision is theirs to make.

Narrewarren01 · Sep 09, 2016 4:57 am

30-45%

Gravy · Sep 09, 2016 11:50 am

I was told by our air conditioning contractor it's between 30-40%

qebtel · Sep 09, 2016 1:11 pm

All of the above is correct, and more. they will usually load you up as much as they think they can get away with. 100% is not out of the question if you come across like a greenhorn.

SaveH2O · Sep 09, 2016 2:34 pm

Yep.

A lot of the water tank installations I see on this forum are over 100% yet still sub standard.

Narrewarren01 · Sep 09, 2016 5:23 pm

qebtel

All of the above is correct, and more. they will usually load you up as much as they think they can get away with. 100% is not out of the question if you come across like a greenhorn.

They provide a service, They don't work for free

But by all means you DO have the option of going owner builder

Lorri · Sep 09, 2016 6:15 pm

Wow there's a big range of markups, I don't mind paying a reasonable amount but I think that up to 30% is a fair amount, anything above that seems to me to be a way of gouging people, no offence to any one here but really?

If we could owner build we would but it is out of the question for us.

PS I don't want to get it for free etc, and if we could do it after handover we would but that is impossible as it has to be installed before the inside walls go on, we are supplying the gear .

Narrewarren01 · Sep 09, 2016 7:27 pm

builders provide a 10 year guarantee.

Don't just look at what it actually costs, other factors are included

Tim65 · Sep 10, 2016 10:47 am

One of the other major things missed here is liability if a builder allows any workers on to site he is ultimately responsible for any actions of people working on the site, A fair mark up would be between 10 - 30 % depending what was involved.

themakeovergroup · Sep 16, 2016 5:23 pm

It's interesting to read the views of others about what they believe a builders margin should be.

It might be useful to consider builder's mark up as a sliding scale that takes into account the size of the job, the risk associated with it, the client's disposition (that is how much time will the builder need to spend managing them), site access/location, the level of customer service the builder offers, etc.

For these reasons the mark up with vary anywhere between 20%-80%. In the cases where it's a higher mark up the builder would be operating in a specific market niche that has special requirements.

To get a rough idea of what a renovation might cost, check out this renovation costs calculator

http://www.homeone.com.au/articles/bathroom/online_renovation_cost_calculator

All the best. Richard@themakeovergroup

jasonwg · Sep 16, 2016 5:47 pm

M openly acknowledge 25%

Lorri · Sep 16, 2016 5:59 pm

I would rather they just say 25% or whatever upfront then everyone knows where they stand.

StructuralBIMGuy · Sep 16, 2016 6:34 pm

Actually its swings and roundabouts
Some items they mark up more while others they mark up less
At the end of the ride... they are very lucky if they even come close to half that

qebtel · Sep 17, 2016 11:14 am

Narrewarren01

qebtel

All of the above is correct, and more. they will usually load you up as much as they think they can get away with. 100% is not out of the question if you come across like a greenhorn.

They provide a service, They don't work for free

But by all means you DO have the option of going owner builder

Ringing up your mate/acquaintance and telling him to come in and do a $4000 job on your build, justifies you earning a $800 (20%) markup? $100 would be fair, but of course that wouldnt even pay for dinner at a top line restaurant for you and your missus, would it? So lets just load up the client as much as we can..... Gimme a break!

Narrewarren01 · Sep 18, 2016 8:46 am

qebtel

Narrewarren01

qebtel

All of the above is correct, and more. they will usually load you up as much as they think they can get away with. 100% is not out of the question if you come across like a greenhorn.

They provide a service, They don't work for free

But by all means you DO have the option of going owner builder

Ringing up your mate/acquaintance and telling him to come in and do a $4000 job on your build, justifies you earning a $800 (20%) markup? $100 would be fair, but of course that wouldnt even pay for dinner at a top line restaurant for you and your missus, would it? So lets just load up the client as much as we can..... Gimme a break!

Does your mate offer 10 year guarantee ??

AussieMark · Sep 18, 2016 12:09 pm

Also in addition to warranty have you considered that the builder has an office, staff and running costs to cover.

It's funny that on a 4000 you think 2.5% is reasonable. A 4000 lounge suite would have a much higher margin.

qebtel · Sep 18, 2016 12:32 pm

Narrewarren01

qebtel

All of the above is correct, and more. they will usually load you up as much as they think they can get away with. 100% is not out of the question if you come across like a greenhorn.

They provide a service, They don't work for free

But by all means you DO have the option of going owner builder

What service exactly? For eg, if a client gets a carpenter to redo his bathroom, and the carpenter subs out the plumbing and electrical work to 2 other qualified licensed tradies, could you explain how a 20%+ markup by the carpenter on the value of those two other tradies work , is justified?