Builders Quotes on Extension

bamboozle

Hi All,

Quick question for those in the know....
extension plans went out to tender with bill of quantities.
8 builders came back with prices, some good some crazy,
i'm down to the final 3 who are very close in price (all between 120-125k)
i'm just wonder if anyone could tell me what type of profit margins builders would have absorbed into their quotes?

i need to drive a hard bargain and am just wondering how low i can squeeze them without them resenting it....all 3 are very eager for the job...

thanks

muffler

Profit margin would be in the region of 15% which is "profit" over and above their weekly pay from the job.

kkelliher

most builders doing extension work at present are having to price (I know as I do them for alot of builders) in the 7.5% to 10% range of profit in order to get in the running. 15% will not win you many jobs at present.

harly1516

Last May you seemed to put out the same question looking for a builder for a 40sq mtr extention looks like its taking a long time and the price would be more like half what your talking are you for real or are you just a POSTER

muffler

Careful now young harly

bamboozle

harly1516 wrote: »

Last May you seemed to put out the same question looking for a builder for a 40sq mtr extention looks like its taking a long time and the price would be more like half what your talking are you for real or are you just a POSTER

thanks for the concern! started planning it back in May, between architect delays & saving cash its been a slow process! extension part is cheap enough, its additions like cobbling the driveway, putting down a patio rewiring and replumbing & renovations to rest of house that bump up the price!

Tester46

kkelliher wrote: »

most builders doing extension work at present are having to price (I know as I do them for alot of builders) in the 7.5% to 10% range of profit in order to get in the running. 15% will not win you many jobs at present.

I recently had a bill of quantities done and the QS/engineer said that medium size builders are still building in a 20% cut for themselves (this is in Munster). So we are going direct labour instead and getting a huge amount of info and advice here on boards.ie.

kkelliher

I would happily try and get 20% for my clients but they would certainly not be very busy.

High&Low

I just had an 80sqm extension completed with an additional 60sqm refurbed for around 130k including VAT. This also included complete rewiring and replumbing, painting inside and out and tiling. My build started in May of this year, i would think I could get it done for less now!

Are the three builders you have narrowed it down to offering you a fixed price contract?

bamboozle

well they've completed a bill of quantities so they are bound by the prices they have put in, i'm just hoping to squeeze the price on a few areas which i think have been priced highly.

Carlow52

Tester46 wrote: »

I recently had a bill of quantities done and the QS/engineer said that medium size builders are still building in a 20% cut for themselves (this is in Munster). So we are going direct labour instead and getting a huge amount of info and advice here on boards.ie.

All the info and advice, from here or elsewhere, is not worth a damn unless you can avail of it correctly with

• the right people with the right attitude
• the right materials
• the right construction methods
• the right supervision.

muffler

Carlow52 wrote: »

All the info and advice, from here or elsewhere, is not worth a damn unless you can avail of it correctly with

• the right people with the right attitude
• the right materials
• the right construction methods
• the right supervision.

I think that goes without saying.

sinnerboy

bamboozle wrote: »

well they've completed a bill of quantities so they are bound by the prices they have put in, i'm just hoping to squeeze the price on a few areas which i think have been priced highly.

I sense you know this yourself OP ..... don't squeeze out the goodwill at the start . It's a judgement call of course . Be satisfied inasmuch as you can be , that the contractor remains glad to proceed on an agreed-to-be-fair basis

bamboozle

sinnerboy wrote: »

I sense you know this yourself OP ..... don't squeeze out the goodwill at the start . It's a judgement call of course . Be satisfied inasmuch as you can be , that the contractor remains glad to proceed on an agreed-to-be-fair basis

Sinnerboy, thanks that's what i'm basically trying to do, squeeze the price a small bit but in doing so not affecting the goodwill...its a fine line!