When working with a design/build company, I’m curious how you determine if you are getting a fair price in a fixed bid contract? It’s tough to get other bids since they designed the plan. Just trying not to get completely ripped off.
Can you tell me how transparent the builder is with the cost of everything? Do they just give you a sum of everything or is it listed out line by line ? and how involved are you in the choices on what supplies to use? How long do you have to wait? I got an appointment on Friday like 30 minutes before and then
I think every area has a budget - i.e. electrical, plumbing, HVAC, cabinetry, drywall, painting, flooring, etc. and each category is based on their sub-contractors written estimates plus whatever the mark-up is for the builder/general contractor. Each of those components has a labor and materials breakdown so one of the things to consider is the level of the materials - broad difference in choices in flooring, for example, or how high tech you want your infrastructure to be - does everything have to be run on a wifi/phone app or do you want to limit risk of hacking/security problems and leave it to manual operating...
Much of the transparency will be based on the type of contract. If the builder uses a 'fixed price' contract you will not see much of the line by line detail (think septic, framing, concrete) but will be given allowances for those line items you need to select (like tile, flooring, fixtures etc). On the other hand, if you have a 'cost plus' contract a good builder will show you every detail since you are paying the cost vs the builder guaranteeing a set price.
Question: Regarding “bad work” … Doesn’t the builder should have someone checking the work of the trades to verify that the job is as in the plans? Why are you implying the responsibility is for client to come and check? What kind of supervision is offered by the builder? That sounds super wrong!
Agree! I’ve had remodeling work done and the general contractors I worked with never came back to check the finished product of subs. They just trusted they did the job and billed me afterwards. That’s when I realized GC are useless, they basically get overhead just to send someone over. Might as well hire the contractor directly!
I`ll never use a cost + builder to build a home. Homes have gone thru the roof and builders % has stayed the same. They are making bank. Builders have gotten a huge pay increase the past 5 years that just isn`t justified.
3:12 the homeowner needs to Do their homework. For example the homeowner should decide whether they want a cheap $1 per outlet receptacle or a designer Legrand outlet $10 a piece. The specificity of products ahead of time….going for Halo can lights versus no name brand….
