HUGE general contractor overrun
Ashe42
10 years ago
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GreenDesigns
10 years agolast modified: 9 years agoAshe42
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General Contractor Pricing
Comments (6)my layman's explanation: Based on the job, they estimate (to themselves) the cost and time of performing and overseeing the work (from all the subs, etc.), then add a buffer to cover unexpected overruns, and add their percentage on top. They also adjust a bit to stay competitive with other GC's. You probably should focus more attention to their reputations, references, etc., esp. how timely they were in finishing projects. There's nothing like a project going over the estimated schedule by a year or more to make the "savings" seem trivial....See MoreIs a 25% project management fee high?
Comments (15)Hollysprings - Thanks for the sanity check on the markup %. I guess if we pay that type of markup, I should expect that they'll be very active on the design aspect. Otherwise, I agree it would be better to go with a firm that doesn't provide or charge for those services. Snookums2 - I know, I'm afraid of scope creep and this bid is already over the top of what we had budgeted, which means we have to make decisions now on how to make cuts to allow us some breathing room. They estimated 4-5 months. We cannot live here during the project, so have to consider additional living expenses as well... I do not know what equipment they are referring to, but will add it to the list of questions. I also want to understand from them whether I am allowed to source my own appliances, tile, etc. if I am not using their services to help pick them out - I have a hard time believing their trade discount is greater than the 25% markup I'd pay on top, but maybe that's an incorrect assumption....See MoreCan I get some tips to function as my own general contractor?
Comments (60)3+/ I believe that insurance should cover all risks of loss of funds, money or damage to materials. You will protect yourself from the fact that something may not go according to your plan. That's exactly how it was for me. I started working with my house, but it took too much money. I was upset. I realized that I needed to hire a contractor. In the end, I turned to these guys https://alsharqa.net/%D9%85%D9%82%D8%A7%D9%88%D9%84-%D8%AA%D8%B4%D8%B7%D9%8A%D8%A8-%D8%A8%D8%A7%D9%84%D8%AF%D9%85%D8%A7%D9%85-%D8%A7%D9%84%D8%B4%D8%A7%D8%B1%D9%82%D9%87-%D9%84%D9%84%D9%85%D9%82%D8%A7%D9%88%D9%84%D8%A7/. They did their job very well. I was satisfied with all the finishing work done! And what would you say about turning to someone for professional help?...See MoreWhat Would You Do With This General Contractor?
Comments (17)@rehb, I am so sorry that you are going through this, and have a couple of suggestions based on having had to fire a contractor during our house build. Stop telling the contractor how much money you do or don’t personally have that you may be able to access- he will “ spend “ it all. Tell him that you need to go to the bank to see what you can do about the financing, and that they are requiring itemized invoices for everything , as well as all receipts of payment from all subcontractors thus far. Do not give him any more money until you have met with your lawyer, the bank etc. Try to keep your savings intact, and use a construction loan to finish the project. The bank is usually much fussier about making disbursements, isn’t likely to be bullied, and will have more of an idea if the amounts you are being charged are really off- base. The bank will also require releases by the subs, so that liens cannot be filed against you. Our builder was a bully, and a liar, was getting kickbacks from subs, for example a $10,000 item, was marked to $12,000 on the sub’s invoice, then they refunded him the $2,000. difference between the customary price and “our” price, and his “plus” on the inflated price was obviously higher than it should have been. Talk about double dipping. My last bit of advice would be, depending where you are in the build, if the relationship has gotten too antagonistic, while the bank considers the new loan amount, ask them for recommendations for other local builders and quietly go see them. You might find someone willing to take over the project who you feel more comfortable continuing on with. It is a very discouraging position to find yourself in, I have been there too, it was difficult, and somethings were “lost in translation” when we changed builders-but we got the house done, and have lived happily in it for 18 years. (Also, don’t tell builder you’re thinking of firing him if you think you might until you’ve made some changes on the record, ours showed up at city hall trying to cancel all of our permits 15 mins after his replacement had had them transferred over. We had to sign several documents to do that. A lawyer should be a help.)...See MoreSaltLife631
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