Help! Cost basis with no receipts....
r m
2 years ago
last modified: 2 years ago
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res2architect
2 years agolast modified: 2 years agoRelated Discussions
need some help!! cost plus contract?
Comments (8)Thanks luckymom23 & juniork! We are building in VA. We are talking to the builder today and have a list of questions to ask. The main one (after we hammer out a fixed price contract for the bank) will be adding and addendum that spells out the terms of the cost plus idea. The bank is fine with an Addendum, or at least the VP said as much by e-mail last night, so long as it's clear that the bank funds are separate. We can deposit our own money with the bank and they will release it along with the bank draws. It's not really cost plus 10%. It's cost plus 10% plus the fixed fee which is allegedly an incentive for the GC to not shop for high bids to charge the 10% on those high bids. But if the GC normally uses the same subs all the time then they know how much all of this stuff will cost....or at least they can project pretty close except if materials sky rocket again. The cost plus builder wants to make sure they are covered, which we understand. They don't want to do a true fixed price in case costs change dramatically like they did with hurricane Katrina. Looks like we will do a hybrid contract if they go for it, fixed price but with us getting receipts and requesting draws based on those receipts + 10%. The budget will already include the 10% so i.e., it's $16K for sheetrock, insulation and labor and the budget says $20K then the draw will only be for $17,600 (cost +10%). The budgets are all being projected based on bids from the usual subs. I know that the painter for the GC we prefer charges $3.25 psf and he does not spray but uses rollers. That is because if the GC has to touch up then it won't look horrible with their brush marks over a sprayed wall. The $3.25 psf includes labor so we don't need to worry if it takes him and his crew 2 weeks to paint our house. We will not need to be involved in selecting the subs. The GC's all use the same subs for every job. The GC we like best has used the same subs for about 7 years and the finished (and under construction) houses we saw all used basically the same subs. The trim work was AMAZING!! I wish I had taken photos. Our builder friend was very impressed - especially with the california closets (varnished bars) and the trim work behind the toilets (molding around the toilet valve instead of just sheetrock and paint). They just seem to do the little extras and that is why we like them best. We do count the garage when calculating the price per square foot, right? If we count the garage then we are paying (depending on which builder) $123 - $130 psf for 3705 sq ft assuming the cost plus contract comes in at budget and not one penny over. This does not include the payment for the lot though. Builder # 2 gave us a fixed price contract estimate that includes a $40,000 GC fee. And the 3rd builder wants a $24,000 GC fee with a fixed price contract. So yes, the builder we like is in line with all the others - right in the middle in fact as far as final price (assuming the estimates are dead on). Another thing we are requesting is that certain items NOT be on the budget. We see no reason to pay 10% extra for an appliance since the whole point in buying it on our own is to save money. I found a great deal on a 36" gas cooktop and it would defeat the purpose of me getting the deal on it if I pay the GC 10% of my cost in addition to the labor I know we need to pay for the install. I also plan to get my own kitchen cabinet hardware so we plan to ask that those items not be on the budget. I'm not sure if that will fly but we are asking. Thanks so much for the advice!!...See MoreElectrician costs - need help understanding
Comments (13)I agree that professionalism was lacking on both sides of this equation. In my own defense, I have never had electrical work done and when someone says I will charge you $65 per hour and it will take a day, I am going to expect a bill for $520 or thereabouts. When the job timeframe doubled (which is already bordering on an abusively misleading quote) I did not quibble. But then to be hit with another whammy by being given a bill with charges more than 100% of the labor costs, when materials were never discussed seems deliberately misleading and deceptive to me rather than unprofessional. What I am learning is that it is common practice for contractors to quote a lower hourly rate with the hope that higher fees can be hidden in unitemized materials charges. This is terrible business practice and leaves to ill will on all sides. Why not be totally transparent and say my real costs are $100 an hour and you can stand here and make sure I bill you accurately for my time rather than play some game by obscuring fees in markups?...See MoreOkay, a cost question on ROUGH electrical. Can you help?
Comments (36)Hi MTVhike, We generally do a 15amp dedicated circuit for the smoke alarms. Every electrical contractor has there own way of wiring up a house. The only thing we do 15amp circuits for is lighting sometimes and smoke alarm. Everything else will be 20amps or above. You would rather have this contractor than one that is putting everything on 15amp circuits. It does also depend how many circuits you are putting in the house. Our circuit layouts: (changes depending on size) 1 20amp each bedroom 1 20amp each bathroom 1 20amp garage 1 50amp for car charger (ready for future use) 1 40amp for stove 1 30amp for A/C 1 20amp exterior 1< 20amp common area receptacles (amount depends on size) 1< 15/20amp common area lighting 1 20amp per 2 small appliance circuits, micro, frig, GD, DW 1 20amp for Washer 1 30amp for dryer additional dedicated circuits per requiest or equipment I believe I got everything, I did it off the top of my head. Overall, this would not be a worry if I saw an electrical contractor installing 20amp circuit for smoke alarms. Hopefully, there was something helpful in there. -Nathan NRG Electric Inc 408-508-5350...See Moreshouldn't my GC give me the receipts?
Comments (10)kompy - we are suing the gc for not finishing our work, so this would get added to the complaint. The gc should have inspected it. We taped the little screw hole covers in baggies on the glass part until after it got painted so they would not get lost and when I was cleaning it the other day, saw the chip near the parts baggies that made it harder to see. The door is still not painted, so it would be less of a loss to swap it out now than if we had finished it off. If it were a used door, or if we had it a few years, it would be no big deal. I am just so tired because of paying for a new extension and renovation and having so many new things that are not done up to standard for new construction. If I had gotten a deal on the door, I might have not worried about it, but we paid full price and there is a defect. It is ok for us to blow off the defect, but they should have noticed it and brought it to our attention or ordered a new one for us. They gave us no choice. Their job was to provide a new door, free of defects, and install it. I am not willing to compromise on inferior materials or work any more from them. We tried being nice while they were working on our project, but they left us in the lurch and now we have the added stress of pursuing them to get them to fulfill their obligations. We get nothing for the extra hassle and time lost. So, if making them pay for the new door to be put in and the old one taken out seems petty, well, so be it. They should have done it themselves and we would not have to pay another person to do it! It is just another example of them giving us a less than promised outcome. If we weren't already suing them and it were a rare exception, we'd let it slide. There just are so many big and small items that need addressing that it has added up to no more tolerance on our part....See Morebpath
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