Estimates and Bids
My GC wants to handle all the estimates and Bids? What should I do to protect myself?
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My GC wants to handle all the estimates and Bids? What should I do to protect myself?
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Jason Armstrong
I’m not sure what you mean. Can you explain further?
Coastal Custom Homes SC 843
As far as im carrying the financial note. I want to be heavily involved in the process of bidding, but he wants to do everything. I think as long as my budget of $200 a sqft stays consistent.
Jason Armstrong
You are the owner and you want to protect your cost per SF because you think the GC you are hiring will exceed that?
Coastal Custom Homes SC 843
Yes exactly
Jason Armstrong
I’m not sure that this is an estimating or take off issue. Even if you do the world’s perfect materials take off, you won’t be anywhere close to a cost to build. I’m the sole estimator for a GC that does spec homes in MT. Our homes are about 15X the cost per square foot you are targeting. We self preform most of the work (pretty much soup to nuts except for drywall and MEP) and have our own millwork/casework shop. We also do all of our own architectural metal work in our fab shop. That being said, I have my historical budget analysis open in front of me that show how much each budget line and division have contributed to the budget for the last ten years and the point spread.
Div 1: 26%
Div 6: 15%
Div 12: 11%
MEP Combined: 12%
Div 2,3,4,5,7,8,9 combined: 30%
This includes the divisional labor, materials, and subcontractors. To specifically look at materials/rental equipment in Div 3,4,5,6,7,8,9,10,11,12 which you could reasonably estimate, the percentage total to the job is 25%. What this all means it that you either need to find a contracting solution to this or, if you just don’t trust your GC, then find another GC. You are never going to get a workable number trying to compare your material take off to your GC’s all-in, total cost of the project. At a minimum, I could suggest you have a fixed price contract for the project. To avoid most change orders YOU need to make sure everything is specified before going under contract.
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