cost of construction materials?

brownthumb · #1 10/20/07, 03:54 PM

I have a friend who I am planning on hiring to build a workshop addition to my garage. He said he would do it for time and materials rather than by bid. I thought that meant I would pay the cost of the materials regardless of whether I went and bought them or we had them delivered. Is it customary for him to order the materials and then add a percentage or should I be expecting him to provide them to me at his cost even if he gets a discount for being a contractor? Also he is drawing up the plans for the addition. Should he be compensated at his hourly rate for the hours he spends drawing up my plans?
I am naive about this and appreciate your input. (Especially if you have been a contractor and done work for friends before.)

no1cowboy · #2 10/20/07, 04:09 PM

You sould be talking to your friend bout all this so there is no misunderstanding

saramark · #3 10/20/07, 04:45 PM

You need to talk to him, but MOST folks do charge an upcharge for materials. I do not. We gladly hand the customer the invoices, or monthly statements and bill for labor on top. I find that folks that bid on jobs have to, by nature, figure worst case scenario, and therefore you pay more. Also, if they do a lousy job and you need to find someone to finish it, you just owe them their time. It is easy to set up an account at a local lumber yard, as some of my regular clients do. Then you KNOW what things cost and they don't have to worry about whether you pay them for materials before the bill is due. Works out for everyone.

Sorry that was so long, just ask to be sure. Don't want any hard feelings

mark

Beeman · #4 10/20/07, 06:27 PM

Make the deal clear and up frt. before any work or agreement is reached. The methods vary and so do the results. I have found that if there is competitive bidding it keeps everyone honest. If they are buying materials and marking them up they don't waste anything. If you are buying materials many cut before they measure and what do they care about waste, you'll buy more.

Bearfootfarm · #5 10/20/07, 08:57 PM

Whatever you do GET IT IN WRITING AND GET IT SIGNED

georgec · #6 10/20/07, 10:33 PM

A contractor that works time and materials will typically charge more for the materials. I have had work done by time and material, and also by bid. I find that getting a bid is safer, you know how much it is going to cost you up front.

rambler · #7 10/21/07, 12:34 AM

I'd go with a bid.... Think that is safer for you.

Talk over the details of the T&M with him, so you are not surprised.

--->Paul

Farmerwilly2 · #8 10/21/07, 03:19 PM

We always used time and material bids on jobs where we couldn't predict all variables. For example, if we needed to put in foundation walls we assume the dig will be clean. If we run into old buried walls that need to be removed that could blow a bid out of the water. You can't employ xray vision to tell the condition of pipe or wire behind plaster if you don't have an access to it. If a job change comes in (oh, Mr. We decided we wanted the wall moved over here, the door moved to this side and bigger, and the bathroom moved here) you can't expect a builder to suck up that cost. Also, we billed our cost on the material, supplied receipts to the buyer, no markups on material. Also, as in most jobs, money for payment of materials was released at stages during the job to cover the cost of materials on site. We drew the final check for material and labor on completion of the job. It wasn't unheard of to bill a job both ways, a bid on some of the work, outlined and detailed, but a clause to charge time and material for situations out of our control. As stated by others, it is always best to discuss with, and document the terms and conditions.

wy_white_wolf · #9 10/22/07, 08:38 AM

Others are right in that you need to talk this out with your contractor.

That said,

When I did jobs on a material/time The costomer paid for what the materials cost. But they also paid for all of my time spent on the project. Drawing plans would be charged to them. So would time picking up materials, delivering them, I would even charge them if they wanted me to walk around the store with them so they could pick out the materials. I had to charge lady 2 hours time while I sat there waiting for her to pick out what color she wanted her bedroom. Many might feel that was excessive but it was time I could have been painting. If you want to do the job on material/time rate, don't waste your contractors time.

WisJim · #10 10/22/07, 12:08 PM

Way back when, when I worked in a lumber yard, we gave our contractor customers a discount off their monthly bills. They were billed at retail on the daily invoices but got a discount at the end of the month, if they paid promptly and in full. Therefore, they could give their customers the invoices and still make a little on the materials, to pay for their time ordering, etc.

WayneR · #11 10/22/07, 06:03 PM

This sounds like a good way to loose a friend. The potential for disagreements is high.

Better to get a price for the total job from several sources in writing before proceeding.

texican · #12 10/22/07, 07:45 PM

I take on such jobs occasionally. I prefer time and materials instead of bids. If a bid is required, I figure out materials, cost of getting them, my labor and expenses, and then double or triple it. If I do do a bid, I write up exactly what I will do for the bid, in order to protect myself. Too many times, trouble lurks inches behind a nice facade, and remodeling reveals the trouble... and I'll be unable to proceed without fixing the unseen problem. Hence the 2x or 3x on bidding.

I lose lots of jobs. No biggie. A few times I'll check in with the owner to see how the other contractor did. It's satisfying to know that the other contractor burned them... with a lower bid, but a higher final cost (for all sorts of reasons---okayed by the owner--- once the project is started, they're usually loathe to stop, because the contractor finds other *problems*) I mention this, and smile, and remind them of my bid... and that I would come back and repair any problems for free....

Farmerwilly2 · #13 10/22/07, 08:54 PM

You hit it on the head Texican. Do the folks right and you will get future business from them, their friends, family and co-workers. Nobody likes to feel like they got took, but if you deal straight from the start, make sure what you are going to do is layed out and let them know what problems may cause the increased price they know you was straight with them.