- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Residential Construction $ per SF?
Posted on 2/23/15 at 10:49 am to Chad504boy
Posted on 2/23/15 at 10:49 am to Chad504boy
Not necessarily. There does have to be a modicum of trust. But if the owner can see the statements, he's free to do some costing on his own to see if the contractor is inflating costs.
transparency is the key factor.
But I can definitely understand being timid on them due to the high rate of corruption in the industry in this part of the country.
It is much more common in other areas.
It's also important to stipulate a cost-plus with a cap
transparency is the key factor.
But I can definitely understand being timid on them due to the high rate of corruption in the industry in this part of the country.
It is much more common in other areas.
It's also important to stipulate a cost-plus with a cap
This post was edited on 2/23/15 at 10:50 am
1
Posted on 2/23/15 at 10:50 am to Chad504boy
quote:
Posted by Chad504boy I don't know about that but generally speaking, a cost plus deal puts all the risks on the people building, not so much on the contractor. But the profit GC is getting is generally in black and white.
Might be manageable if you had an agreement that stipulated no markup after a target price had been reached. Contractor has little incentive to stretch it out in that arrangement.
Posted on 2/23/15 at 10:50 am to DirtyMikeandtheBoys
Who pays all the subs? You or the homeowner? My traditional thought on a cost plus is the homeowner pays all the subs and material cost throughout job?
Posted on 2/23/15 at 10:52 am to uway
quote:
no markup after a target price had been reached.
You hire a GC, usually a GC is hiring 5 different subs to do various trades of work. A cost plus is only agreeing GC is making Lets say 12% or a fee basis. Not really putting in stones the plumbing cost, the carpentry cost, those could all be quoted but possibly all prices are not guaranteed.... there are many grey areas in arranging a cost plus deal.
Posted on 2/23/15 at 10:53 am to Chad504boy
quote:
But the profit GC is getting is generally in black and white.
Maybe maybe not. Say the project needs 1000 cy of dirt. And the contractor submits a bill for 1100. Say the contractor gets 4 electrical quotes but only shows the owner 3. Say the contractor bills for 200 hours of carpentry labor. Is the owner gonna be on site everyday to verify how many carpenters worked and how many hours that they worked? Maybe the contractor has multiple jobs going, but decides to charge all of the building materials to one job. Who's going to verdify the amount of lumber used on that job?
Posted on 2/23/15 at 10:54 am to crimsonsaint
quote:
Say the project needs 1000 cy of dirt. And the contractor submits a bill for 1100. Say the contractor gets 4 electrical quotes but only shows the owner 3. Say the contractor bills for 200 hours of carpentry labor. Is the owner gonna be on site everyday to verify how many carpenters worked and how many hours that they worked? Maybe the contractor has multiple jobs going, but decides to charge all of the building materials to one job. Who's going to verdify the amount of lumber used on that job?
homeowner pays all subs and costs directly.
Posted on 2/23/15 at 10:58 am to Chad504boy
quote:
homeowner pays all subs and costs directly.
That he "assumes" are working on his property. He will have no idea which "Jose" is at his house or the house down the street. Yet they are all being billed to his property.
I would only do a cost plus based off word of mouth recommendations from friends in my neighborhood that have used that contractor on a cost plus basis.
Posted on 2/23/15 at 11:01 am to MrLarson
quote:
That he "assumes" are working on his property. He will have no idea which "Jose" is at his house or the house down the street. Yet they are all being billed to his property.
are u kidding me right now? Dude is living in his house, you don't think he'd know who the hell is doing what?
quote:
I would only do a cost plus based off word of mouth recommendations from friends in my neighborhood that have used that contractor on a cost plus basis.
such an odd and dumb statement.
Posted on 2/23/15 at 11:02 am to jbgleason
quote:
governmental contract work
JB, they define cost plus much differently.
Posted on 2/23/15 at 11:04 am to Chad504boy
quote:
you don't think he'd know who the hell is doing what?
Does he go to work?
quote:
such an odd and dumb statement.
If he hasn't worked in your neighborhood before, he isn't working on my house. It's not dumb, its reputation.
Posted on 2/23/15 at 11:07 am to MrLarson
quote:
Does he go to work?
this is a very bad angle of argument man.
quote:
If he hasn't worked in your neighborhood before, he isn't working on my house. It's not dumb, its reputation.
Just weird how you are limiting it to neighborhood and a cost plus, i mean shite, your theory means you aren't hiring anybody to do anything that hasn't done the exact same thing in your neighborhood!
Posted on 2/23/15 at 11:13 am to Chad504boy
quote:
Just weird how you are limiting it to neighborhood and a cost plus, i mean shite, your theory means you aren't hiring anybody to do anything that hasn't done the exact same thing in your neighborhood!
So the OP is looking to spend 100k +/- on a bedroom addition.
In the Birmingham area this would not be considered a "poor" addition. So I would be very leery about who I let on my property. Thus being a word of mouth and knowing projects he has done.
If it was a 20k addition 10%-15% screwing isn't that bad. But take that same percentage on 100k and it's a different story.
He is hiring a GC because he doesn't/isn't going to be there every day watching people coming and going.
Posted on 2/23/15 at 11:22 am to Chad504boy
The homeowner will be at work everyday. He's never gonna know who worked at his everyday. I can charge you for four carpenters for last Tuesday when it was really only 3. And you have no way of proving otherwise.
Posted on 2/23/15 at 11:25 am to crimsonsaint
quote:
He's never gonna know who worked at his everyday. I can charge you for four carpenters for last Tuesday when it was really only 3. And you have no way of proving otherwise.
You are hiring subs to complete a job, not necessarily paying hourly wages. I couldn't give any fricks how many joses were at my house on tuesday when i'm paying my framing contractor 20k to frame up my new carport/garage/masturbation study and that's it. Think you are getting out of whack here.
Posted on 2/23/15 at 11:25 am to Chad504boy
quote:
this is a very bad angle of argument man.
It really isn't. In industrial construction, the level of on-site inspection is much higher on cost plus contracts.
That's even when there is a long-term relationship between client and contractor.
Posted on 2/23/15 at 11:30 am to uway
quote:
In industrial construction,
Posted on 2/23/15 at 11:31 am to Chad504boy
quote:
masturbation study
"Dat's gonna add anutter $20K for da stain resistant flooring."
Posted on 2/23/15 at 11:33 am to N2cars
quote:
"Dat's gonna add anutter $20K for da stain resistant flooring."
no way jose, general contractor dude already knew i wanted that and it was included in your bid. I ain't getting jacked around buddy.
Posted on 2/23/15 at 11:35 am to Chad504boy
quote:
Think you are getting out of whack here.
Dude I do this for a living. I could frick you twenty different times on a cost plus contract and you'd be none the wiser.
Posted on 2/23/15 at 11:36 am to Chad504boy
quote:
i'm paying my framing contractor 20k
Estimated 20k
I am assuming you are a contractor. I'm not saying you screw your customers. But 99% of contractors are lying POS's, taking this job to pay for the last job. He's going to get screwed more than likely, I would just limit my exposure, and cost plus is not that way.
Page 3 of 4
Popular
Back to top
Follow TigerDroppings for LSU Football News