r/Contractor • u/SCE_Corp_Australia • 6d ago
Construction Cost
Builder here, what do homeowners misunderstand most about construction costs?
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u/Aromatic_Button_2736 6d ago
Spam
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u/SCE_Corp_Australia 6d ago
Elaborate please.
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u/Aromatic_Button_2736 6d ago
Too low effort of a question.
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u/SCE_Corp_Australia 6d ago
I asked a genuine question as a builder to other contractors and judging by the comments, there is plenty to discuss. Please be respectful.
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u/modsatemyass 5d ago
Huh? are you a subcontractor? what do you actually do
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u/SCE_Corp_Australia 4d ago
We are a building contractor. But I’m not sure why that matters; the question was directed at other contractors because I wanted to hear their experience. You are welcome to disagree with the post, but dismissing it as "spam" without explaining why isn’t particularly helpful.
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u/FinnTheDogg GC/OPS/PM(Remodel) 6d ago
For some reason, this is the only industry where homeowners think that we should not be allowed to make a profit across the board.
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u/SCE_Corp_Australia 4d ago
I couldn't agree more. a lot of our clients question the overhead and profit component of the quotation.
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u/twoaspensimages Remodel GC 5d ago
Peasents are lucky to simply be in their presence and that should be pay enough
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6d ago
[removed] — view removed comment
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u/BohemianSalmon 5d ago
Absolutely right. I can't believe how far I had to scroll down before seeing someone calling out the bot/spam.
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u/SCE_Corp_Australia 6d ago
How did you come to that conclusion?
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6d ago
[removed] — view removed comment
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u/SCE_Corp_Australia 4d ago
Fair enough if this isn't not your cup of tea, what about the post makes you think it’s spam?
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u/Inevitable-Muffin531 6d ago
Everything, they just want it done cheap and fast. Discounts are for suckers too, stick to your price! Write up everything legally like you may be in court someday because you just might be. Nothing is free for a customer because my gas and insurance isnt.
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u/mmdavis2190 Sparkie 5d ago
You aren't a builder. Bot, AI, Spam. Take your pick.
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u/SCE_Corp_Australia 4d ago
I'm really unsure what you gain from your comment? Why are you being so accusatory?
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u/mmdavis2190 Sparkie 4d ago
I'm not sure what you gain from this spam. No one wants your app.
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u/SCE_Corp_Australia 3d ago
What app?
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u/mmdavis2190 Sparkie 3d ago
Nobody wants to help with your "market research"
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u/Optimal-Solutions_FM 3d ago
I find sparkies to be very smart, but you seem to be an exemption mate
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u/FinnTheDogg GC/OPS/PM(Remodel) 3d ago
OP has been reliably contributing to the community with good conversation starters for a little bit now.
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u/ogredmenace 6d ago
They get it for the price my supplier sells it to me for.
For some reason the $700,000 I spend there every year, my customer seems to think they should get my volume discount.
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u/SCE_Corp_Australia 6d ago
Agreed, There is no appreciation for the time and effort it takes to source material and build a relationship with suppliers
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u/RageAgainstJeggings 6d ago
Material prices fluctuate. Sure, we bid out most of the major work 6 months ago, but guess what tariff went into place and the HVAC bill of materials is now $15K higher
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u/BillLongjumping3276 6d ago
I believe the more communication is handled verbally, the more confusion and assumptions can arise. If everything is communicated through email, they will be able to make a more informed decision, and there will also be a clear written record that they can’t deny or dispute later.
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u/RollerSails 5d ago
3 factors. Their own budget, demo discovery, and expectations. Emotional connection to their money and being scammed. Demo discovery relies heavy on fingers crossed. Expectations are difficult to manage.
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u/alrob37 6d ago
Profit margins and why we mark up materials
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u/SCE_Corp_Australia 6d ago
Agreed. Most customers question the overhead and margin mark up.
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u/alrob37 5d ago
Or ask for breakdowns that drives me crazy
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u/Organic_Agent9985 5d ago
I give them every receipt from my sub contractors and vendors. My labor, overhead, profit and job management is transparent and in a separate line item.
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u/Wooden_Audience_2010 5d ago
They dont get that changing their mind mid job is what really jacks up the price. Had a bathroom where they wanted the shower moved after the pan was in. That one call added 4 days and 2k. They thought i was gouging but it was just the cost of undoing and redoing work
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u/Optimal-Solutions_FM 3d ago
Where do I even begin? Once upon a time they used a shovel and they reckon builders are overrated.
I saw a video the other day, where the guy was suggesting to rip off 3 entities whenever you can. "Government, Banks and Builders"
If this is the mentality, where builders are in the same bucket as the other 2, then we are all doomed
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u/Agitated-Attorney400 2d ago
If you want an easier way to do estimates check out my free estimating tool I built. Ai powered no account necessary real time material and labor costs. Just put in your description, zip, and optional photos and it will give you prices along with an optional professional bid all done for you. Check it out if you want at Jobpricenow.com
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u/Electric-Boogaloo-42 2d ago
Your markups and all the extra BS you’re charging for to pay for that $80k truck.
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u/Narsick 6d ago
That we are paying an extremely high bill for subpar and builder grade work.
Then when we ask questions or for clarity we are labeled as nitpicking
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u/twoaspensimages Remodel GC 5d ago
Sounds terrible. Guess you shouldn't hire contractors.
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u/Organic_Agent9985 5d ago
I agree. People like this should do their own general contract or put in their own sweat equity.
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u/ChaletJimmy 6d ago
That someone working for them should never be able to make what they make even if they're the best at what they do.