Browse Forums General Discussion 1 Jan 18, 2010 5:46 pm If the builder is doing a cost plus contract, and the agreed margin is 20%, then he should make 20% on everything, including engineering. Blog is now up - http://www.jbdave.blogspot.com/ Re: Should the Builder make a margin / 20% on engineering costs? 2Jan 18, 2010 6:49 pm Cost plus 20% is pretty steep . 15% is closer to the mark, check with another builder Where you are coming from is where you are going to... Re: Should the Builder make a margin / 20% on engineering costs? 3Jan 18, 2010 7:36 pm My builder made 50% off my tiling!!! Re: Should the Builder make a margin / 20% on engineering costs? 4Jan 18, 2010 7:47 pm It depends on the final figure, usually the percentage lowers with the greater the value of the job .i.e If they're saying 20% on an estimated $300,000 build ...then i'd look elsewhere. The builder i subby to usually operates at around 9-10% on $300,000. Re: Should the Builder make a margin / 20% on engineering costs? 6Jan 19, 2010 12:45 pm Ours is (iirc) 20% builders margin on everything. Our Build - Places Fairhaven 23+ - https://forum.homeone.com.au/viewtopic.php?f=31&t=28045 Our Landscaping - Belial's Backyard - https://forum.homeone.com.au/viewtopic.php?f=19&t=45375 Re: Should the Builder make a margin / 20% on engineering costs? 7Jan 26, 2010 2:36 pm Most Builders will Project manage the build for you. However, I offer this service as a cost saving and to help those that want to go down the owner builder path. Once you attend a short owner builder course, (3days) you can then become the builder for that job only. you then source all the material and labour yourself. saving you margin and overheads that the builder would charge. If you are wanting to do some of the work yourself then you can save even more money. my costs vary, depending on the level of service that you require. I often do consulting at an hourly rate for checking work and offering advice. Or a flat rate of the build cost for a full service Project Management. Where I source all the material and labor, organise the build. you simply sit back, and sign cheques and watch it all unfold. So it all depends on what you are trying to achieve. Feel free to contact me if you need any further information Chris Re: Should the Builder make a margin / 20% on engineering costs? 8Feb 11, 2010 5:29 am While the 20% margin sounds a lot, in reality it is peanuts. Most businesses have overheads that will range from 15% - 25% of turnover (income). If a builder is only making 10% on costs then guess what, they are going backwards every time they go to work. The bigger builders operate on tighter margins because they have higher volume and therefore reduce the overall overhead cost - it is a matter of mathematics. The margin on engineering is (technically) to cover all the time it takes to manage the engineer etc, but the business reality is that a margin must be applied to all transactions in order to maintain a profitable business. As Chris mentioned above, there are alternatives to these types of traditional building contracts where the builder buys and sells (at a markup) all the labour and material for the project. Personally, I prefer the Construction Management option as we can concentrate on what we do best which is running projects, rather than trying to make a profit on things like taps when the reality is you can screw most suppliers down to the same price we get them for. Also, the Cost Plan is much more transparent and everyone knows what is going on...a much happier experience all around. Builders are people too.... Assuming you've modelled the TB8, TB10, TB12, TB2 & J1 joists/LVLs there, it appears as per drawing to me. There maybe should be an additional J1 between TB10 and T12 if… 3 32025 Thanks for all replies. I just noticed now the pictures I added to post right on top of page were wrong. I attached pictures showing "current" and my "suggested" floor… 9 14757 Not sure who you're building with, but I moved in recently to a 11month scheduled, 8 month actual build on the South coast/Illawarra NSW 3 5966 |