Browse Forums Building A New House Re: What is a reasonable Builder's Margin? 21Apr 26, 2018 8:42 pm Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: What is a reasonable Builder's Margin? 23Apr 27, 2018 9:23 am Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: What is a reasonable Builder's Margin? 25Apr 27, 2018 11:22 am I have Engineering Drawings and BIM Models mate and I share them ..LOL , you have only rendered model elevations ? No doubt you will be in for some Surprises +15% hth Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: What is a reasonable Builder's Margin? 26Jun 05, 2018 9:18 pm Hi everyone, In regards to builder's margin, can a builder demand for it if they are acting on our behalf, as agents? The story is, a pipe needs to be cut down by water company and a variation was raised by the builder. Can they include a builder's margin on the variation which is about 60% more of the actual amount? Let's say water company charged us $2000, what's is written in the variation is $3200. Is that normal? Thanks for your reply. Re: What is a reasonable Builder's Margin? 28Jun 06, 2018 9:40 am StructuralBIMGuy @TeamKV Welcome to the forum Ouch....Seriously That's RED HOT Check your contract & then contact Consumer Protection in your State Thank you structuralbimguy for your response. As per contract the percentage applicable for extra work is 20%. You think that can be under that clause? Thanks Re: What is a reasonable Builder's Margin? 29Jun 06, 2018 11:08 am That Sounds Fair to me... Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: What is a reasonable Builder's Margin? 30Jun 06, 2018 12:15 pm StructuralBIMGuy That Sounds Fair to me... Yes it is. But I dont think the percentage charged to us is within the percentage stated in the contract. As apparently they charged about 60% more. Doesnt look right, though. Re: What is a reasonable Builder's Margin? 31Jun 07, 2018 8:37 am TeamKv If it's a cost plus contract/clause it's best to have the works specified & quantified or It may end up being "Whatever invoice is printed Plus 20% margin and there is no end to it" Know what you are signing "Forewarned is forearmed" Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: What is a reasonable Builder's Margin? 32Jun 07, 2018 10:30 am TeamKV StructuralBIMGuy That Sounds Fair to me... Yes it is. But I dont think the percentage charged to us is within the percentage stated in the contract. As apparently they charged about 60% more. Doesnt look right, though. Its not right, It's 20% on top of cost ($2000) There is no basis for 60% more unless builder also had to carry out some work but then that should have been itemised. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: What is a reasonable Builder's Margin? 33Jun 07, 2018 10:36 am building-expert TeamKV StructuralBIMGuy That Sounds Fair to me... Yes it is. But I dont think the percentage charged to us is within the percentage stated in the contract. As apparently they charged about 60% more. Doesnt look right, though. Its not right, It's 20% on top of cost ($2000) There is no basis for 60% more unless builder also had to carry out some work but then that should have been itemised. Thank you building-expert. It is not itemised because they are actually not doing the work themselves. It is the water company. They are acting as agents/middleman for this particular issue. Their work will commence once the pipe has been cut back that is why I can't seem to find a valid reason for the high mark up being charged to us. Thanks Re: What is a reasonable Builder's Margin? 34Jun 07, 2018 10:58 am TeamKV ..... It is the water company. They are acting as agents/middleman for this particular issue. Their work will commence once the pipe has been cut back that is why I can't seem to find a valid reason for the high mark up being charged to us. Thanks That's the Flip side of the coin State sanctioned Service providers That charge whatever they like and you have to pay it ..you should have got a quote at the planning stage. Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: What is a reasonable Builder's Margin? 35Jun 07, 2018 11:10 am StructuralBIMGuy TeamKV ..... It is the water company. They are acting as agents/middleman for this particular issue. Their work will commence once the pipe has been cut back that is why I can't seem to find a valid reason for the high mark up being charged to us. Thanks That's the Flip side of the coin State sanctioned Service providers That charge whatever they like and you have to pay it ..you should have got a quote at the planning stage. We haven't started building yet, fyi. We have a copy of NOA from the water company and the quote is as clear as water. When the builder raised the variation, it sky rocketed. It's a simple math. You dont need to be an expert to confirm something is wrong. The price is almost doubled, and they won't even do any work at all. Hmmmm Re: What is a reasonable Builder's Margin? 36Jun 07, 2018 12:08 pm TeamKV ... The price is almost doubled, and they won't even do any work at all. Hmmmm Unfortunately you don't even have a Mexican Standoff between the service providers,builder & a Battler... sorry, you're stuck pay it. Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: What is a reasonable Builder's Margin? 37Jun 07, 2018 12:27 pm StructuralBIMGuy TeamKV ... The price is almost doubled, and they won't even do any work at all. Hmmmm Unfortunately you don't even have a Mexican Standoff between the service providers,builder & a Battler... sorry, you're stuck pay it. Stuck to pay it? I am not sure if we are on the same page lol but thank you for your advice. Re: What is a reasonable Builder's Margin? 38Jun 07, 2018 12:48 pm Not yet on the same page....But you not paying it delays the builders start and the contract taking effect, also he may be incurring monthly other price increases which he is entitled to.hth Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: What is a reasonable Builder's Margin? 39Jun 07, 2018 2:01 pm StructuralBIMGuy Not yet on the same page....But you not paying it delays the builders start and the contract taking effect, also he may be incurring monthly other price increases which he is entitled to.hth Yup, completely understand that. I didn't say we wouldn't pay for it but they have to make sure the mark up is what's in the contract. We follow what's in the paper, after all that's what it is for. Re: What is a reasonable Builder's Margin? 40Jun 07, 2018 2:55 pm TeamKV If you have signed building contract and the contract provides 20% margin on builder's variations then that's it, no argument. It seems that your builder is testing you to see how far they can push you. You should consider your own independent building consultant to look after your build and to push the right buttons. it should change complexion of relationship with your builder in your favour. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Seems good to me. I've been told $4-5k/sqm is reasonable in Perth. 2 11189 Hi Mofflepop, I would recommend finding a building designer to prepare plans, they should design to your specified budget. The benefit is you can tender the project out… 9 20432 |