contractor mark up on cabinets?
cbriskin01
9 years ago
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9 years agoSuziKD
9 years agoRelated Discussions
GC Mark Up - Is this reasonable? (x-posting)
Comments (11)We live in the Seattle area where sometimes there is a year and half waiting period for GC's. After 3 renovations, and firing 2 GC's on the last one and GC'ing the job ourselves, we received a good education into what they do. First off, if he can really get good work done, and has top quality workers, then you're already a step ahead. If you know his work is stellar, and that he will guarantee it, then you're even further ahead. A lot of what he does is administrative...most GC's nowadays will never wield a hammer or even chip in if manual labor is required. It's a full-time job just to oversee the workers, subs, and to deal with the customer. Not to mention all of the spreadsheets, calculations, and financial planning that goes into it. While I wouldn't quibble with is worker price ($35 is a bargain, believe me) and his markup of it, where I draw the line is at the 25% markup on materials. That was an old business model for general contracting, and the rules are changing nowadays. Since internet shopping has appeared and GC's have so much work, many clients are buying large ticket items in the material list themselves, and saving the markup. You might ask him about that...see if you can buy the appliances, windows, doors, millwork, faucets, carpet, lighting, etc, yourself. I'm not sure if there are contractor supply houses or building supply houses in your area of NY State, but many things you can find online cheaper than he can get you. This means many hours of research on your part, as well as schlepping materials from the retailer/wholesaler to the job site in time for his workers. It saves him a lot of time running around town getting things, as well as paying state taxes and the other assorted paperwork involved. He may let you do some of the items on your own, such as appliances and kitchen hardware. It's worth asking if you can potentially save 25%, which is a lot on cabinets, appliances and sinks, where your budget for that group alone can be at least 25K. Don't ask for an allowance on his part...ask him to remove it completely from the equation. Factor in that he may charge you more for labor to accrue some of his lost income. But even if you can save 5K on the job, that's quite a bit of money, or it almost buys you a SZ fridge!...See MoreRTA Mark Up
Comments (2)Dealer multipliers are set by the manufacturer, and have many variables, including distance for shipping, volume purchased, new government tariffs on Chinese products, and other variables. What they pay isn't really really relevant to you. What your bottom line is matters. If the number doesn't work for your bottom line, then move on. But, why would you even think about buying Chinese stuff when you can find American cheaper? There are a LOT of good value made in America brands...See MoreCustom Home bid-Overhead and Profit plus sub mark up?
Comments (11)If this is really a Lump Sum contract, you are asking questions that can't be answered because, by definition, a lump sum price is not broken down in the contract; it wouldn't be lump sum if it were. If prices are actually broken down in the compensation section, then the contract is some kind of hybrid or perhaps even based on the cost of the Work times a % fee with a Guaranteed Maximum Price (GMP). If that is true, the cost to you would be the same unless the cost is below the GMP (or Lump Sum) in which case you would keep the savings with Cost Plus and the contractor would keep the savings with Lump Sum. This should be determined by the contract wording, not the data he is providing. If the contract terms are not clear and straight forward in the contract, no one can help you without reading your contract....See MoreHow to fix? Contractor Mess Up
Comments (7)There is nothing to be “fixed”. Trim gets caulked and painted. Tile wraps the corner in mirror images of a full tile, and all changes of plane get caulked. Throw away your microscope and stop expecting the sausage making ptocess to be the completed brown tasty morsel on your plate. It’s full of bloody parts and pieces. Remodeling is a messy process. This isnt finished, and he isn’t done....See Morecookncarpenter
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