Bryn asks: On a cost-plus bid, what be an average to high-average markup to expect from a contractor with a strong reputation for doing good work? What is the highest percentage one might expect? Are there other factors in comparing bids? Steve Bliss, of BuildingAdvisor.com, responds: There is no industry standard for markup percentage and the numbers vary a lot depending on … [Read more...] about Cost-Plus: How Much Markup?
Estimating & Bidding
Brad asks: On remodels, are supervision costs typically included in contractor's percentage fee or are these billable? Steve Bliss, of BuildingAdvisor.com, responds: There is no definitive answer to your question as different contractors handle this issue differently. The really critical thing is that the contract clearly spells out what costs are reimbursable what are not. … [Read more...] about Cost-Plus: Are Supervision Costs Billable?
Louise writes: We submitted detailed plans and specs for a substantial remodel of a beach house to five builders: two "big name" builders, two midrange, and one "mom and pop," but very highly regarded, small builder. This is our first time going through this process and we (naively) assumed that we would get back five proposals that we could compare easily. Wrong! Some are … [Read more...] about Comparing Bids: Is the Low Bid the Best?
Peter writes: I received a quote from a building company for a new customized, pre-fabricated home. The quote and specifications are quite complex. How can I tell if the price is reasonable and competitive with a site-built home? Steve Bliss, of BuildingAdvisor.com, responds: To find out if the bid is in the ballpark, you can compare it to similar new homes for sale in your … [Read more...] about Modular Housing Costs vs. Site-Built?
Cristal writes: If the Contractor Bid $300,000 to build my house and then it ends up costing less to build the house do I still pay the $300,000 that I signed the contract for? Steve Bliss, of BuildingAdvisor.com responds: The simple answer is yes -- you'll pay the full contract amount assuming this was a standard fixed-price competitive bid. There are some situations … [Read more...] about Final Cost Is Less Than Bid