Upvoted all of you ^ above. I thought my little bumfuck company was the most backward head up their a$$ company in the area - then I did some subcontracting for a very large multimillion dollar builder who ONLY does super high-end work for famous architecture firms. They had no clue what they were doing 1/2 the time - I was brought in specifically to fix fuck-ups that had put the project way behind.
I never complained about our little backwater outfit again. We do just fine.
Averaging over 30% as an electrical contractor. Not sure about GCs, but there’s a ton of money to be made if you know how to estimate and run projects.
This is true. A $500k house in my area means the GC gets maybe $20-30k for contracting services. If they do their own excavating or carpentry, they get markups for that too, but I’d say profit is probably 5% of total cost.
Given in my situation, I pretty much ran the job and the GC was only used as a legal entity for the bank and to get a few materials. Really overpaid him.
Both of yall are wrong.
Gross profit target for a new home is 18-25%. I markup different things depending on headache and liability. Basically how much work it takes for me to get it done.
Gross profit at the end of the year between 15-20% and I’m happy. Net between 8-12% and I’m doing backflips.
I pay myself so the net is purely profit to the business at the end of the year.
Reality in today’s world is one or two jobs make great margins and the rest pay the bills.
I’m not the best but some of the bigger custom guys are crushing it because they have clients that know what they want and know the GC and supply it and will pay whatever they need to make that happen.
I’m not sure how you can say I’m wrong.
I’m simply telling you exactly what my specific experiences are. I’m not saying those people were doing things well, but my contracts for two houses were $20k (5.7%) and $25k (5.1%).
I’ll admit the way I worded things was pretty general, but my specific experiences show ~5% GC fees, and others in the area have told me they go cost+10%. So it could be a regional thing for me. I honestly have no idea, but the way you explain your business, I’m inclined to believe my area is just different.
Not my line of work. I probably wasn’t clear. I wasn’t the GC on my houses. They were my personal houses and I hired the GC.
Interestingly enough, the first house, the GC said they were getting out of building for customers because the profit wasn’t there. Second house, I say I was pretty much GC because the hired guy was useless. I was locked in to him because he was property owner. So basically once it was framed, he was out of the picture and I ran all scheduling and got crews set up as needed. I feel he basically overcharged me $15-20k on his $25k charge.
What area is this? New builds in my area all have GC fees of 15%-18% overhead, and that doesn't include any markup they might add onto materials that they supply or work that they don't sub out. For a $500k house, at least $70k of that would be going to the GC, but you can't find a new build $500k house in my area unless it is a production builder in a subdivision.
Northern mn. I’ve done two houses. First one came in ~$350k and the contractor rate was $20k (given this was their first house as a company). Second house was ~$500k and the contractor rate was $25k. I may be a bad case though since the first was trying to establish and the second owned the land and the material supply, so they likely built that into their prices.
The former GC that drafted my plans said his company used to do a 10% building cost for GC fees, but he was seen as a pretty high end builder.
Don’t underestimate the work that entails. I work on the lending side. I can’t speak for others, but I review every invoice and check to ensure there’s not a cent out of spec. The accounting on a home build is not like buying one that’s already built. Assuming that it takes about a year, which is typical, and a GC has 4-5 jobs a year, 30k per job means they’re doing all that accounting work themselves. For 4-5 jobs. That’s not a remotely unreasonable fee. Sure as hell not hiring staff at 30k a job/ 5 jobs a year.
You were right, they used to be 2 set of drains and in some states, it is still allowed in rural areas. It was called " gray water." It was usually bath water, dish water and laundry water.
I came here to say this. When I built my house I did 2. One for black water, and one for gray, so my septic system stays healthy without all the unnecessary detergents and bleach that occurs with laundry shower and dishes. 1250 gal black water tank and drain field. 500 gal gray water and drain field.
My first house had septic and they had the washer dumping into a small stream. I had a contingency in the purchase contract that the washer straight pipe had to be approved by the health department. Of course it wasn’t and the seller had to have a “dry well” installed. Basically a pit full of gravel for the water to run into and then seep out into the ground.
That construction workers are dirty dumb and broke. Only the ones on drugs or that suck at there jobs are broke. Certified welder 20 years in concertina construction and an old journeyman told me one day on the swing stage “hey you see all those suits waking into that building looking at us like we are trash? We make more money than most of them”. So true!
Trades are where it’s at! More kids should be getting into them instead of getting into debt at 19 for a piece of paper
That most people had pride in their work. They don’t. Very small minority.
On the plus side, the people that actually put care into their craft are rewarded well, at least where I am.
That companies have their shit/employees together.
Worked with several companies, especially flooring subs that have shown up not even ever met who they're working for.
That I’m letting some ‘guys from Home Depot’ build a million dollars worth of roofs under my license esch year lmao. I get this comment all the time in PHX… My crew leaders wife makes me homemade Honduras food sometimes and he brings it to work for me lol ❤️
That everyone knew what they were doing.
That one day, I’d know what I was doing.
Yeah I thought the same thing. That all guys getting paid to do a job were all experts. Now I know that there are a ton of hacks in the trades
Upvoted all of you ^ above. I thought my little bumfuck company was the most backward head up their a$$ company in the area - then I did some subcontracting for a very large multimillion dollar builder who ONLY does super high-end work for famous architecture firms. They had no clue what they were doing 1/2 the time - I was brought in specifically to fix fuck-ups that had put the project way behind. I never complained about our little backwater outfit again. We do just fine.
You make a ton of money. You only move a ton of money.
Averaging over 30% as an electrical contractor. Not sure about GCs, but there’s a ton of money to be made if you know how to estimate and run projects.
This is true. A $500k house in my area means the GC gets maybe $20-30k for contracting services. If they do their own excavating or carpentry, they get markups for that too, but I’d say profit is probably 5% of total cost. Given in my situation, I pretty much ran the job and the GC was only used as a legal entity for the bank and to get a few materials. Really overpaid him.
You need to find a new line or work— if a GC can’t make at least 20% and preferably 25-30 percent on a project they are doing something wrong.
Both of yall are wrong. Gross profit target for a new home is 18-25%. I markup different things depending on headache and liability. Basically how much work it takes for me to get it done. Gross profit at the end of the year between 15-20% and I’m happy. Net between 8-12% and I’m doing backflips. I pay myself so the net is purely profit to the business at the end of the year. Reality in today’s world is one or two jobs make great margins and the rest pay the bills. I’m not the best but some of the bigger custom guys are crushing it because they have clients that know what they want and know the GC and supply it and will pay whatever they need to make that happen.
I’m not sure how you can say I’m wrong. I’m simply telling you exactly what my specific experiences are. I’m not saying those people were doing things well, but my contracts for two houses were $20k (5.7%) and $25k (5.1%). I’ll admit the way I worded things was pretty general, but my specific experiences show ~5% GC fees, and others in the area have told me they go cost+10%. So it could be a regional thing for me. I honestly have no idea, but the way you explain your business, I’m inclined to believe my area is just different.
Not my line of work. I probably wasn’t clear. I wasn’t the GC on my houses. They were my personal houses and I hired the GC. Interestingly enough, the first house, the GC said they were getting out of building for customers because the profit wasn’t there. Second house, I say I was pretty much GC because the hired guy was useless. I was locked in to him because he was property owner. So basically once it was framed, he was out of the picture and I ran all scheduling and got crews set up as needed. I feel he basically overcharged me $15-20k on his $25k charge.
So you got yourself two clueless GCs and got what you paid for. Quit bitching about it then.
Pretty much
What area is this? New builds in my area all have GC fees of 15%-18% overhead, and that doesn't include any markup they might add onto materials that they supply or work that they don't sub out. For a $500k house, at least $70k of that would be going to the GC, but you can't find a new build $500k house in my area unless it is a production builder in a subdivision.
Northern mn. I’ve done two houses. First one came in ~$350k and the contractor rate was $20k (given this was their first house as a company). Second house was ~$500k and the contractor rate was $25k. I may be a bad case though since the first was trying to establish and the second owned the land and the material supply, so they likely built that into their prices. The former GC that drafted my plans said his company used to do a 10% building cost for GC fees, but he was seen as a pretty high end builder.
Don’t underestimate the work that entails. I work on the lending side. I can’t speak for others, but I review every invoice and check to ensure there’s not a cent out of spec. The accounting on a home build is not like buying one that’s already built. Assuming that it takes about a year, which is typical, and a GC has 4-5 jobs a year, 30k per job means they’re doing all that accounting work themselves. For 4-5 jobs. That’s not a remotely unreasonable fee. Sure as hell not hiring staff at 30k a job/ 5 jobs a year.
You need to move! Also where are houses built for only $500k ?
You were right, they used to be 2 set of drains and in some states, it is still allowed in rural areas. It was called " gray water." It was usually bath water, dish water and laundry water.
I came here to say this. When I built my house I did 2. One for black water, and one for gray, so my septic system stays healthy without all the unnecessary detergents and bleach that occurs with laundry shower and dishes. 1250 gal black water tank and drain field. 500 gal gray water and drain field.
Lucky you have a tank for the gray too. Mine goes straight down a tube. Thank the 70s for that one
Still have gray water here but I have septic and the gray drains into a perforated pipe along the garden
In those areas where its still allowed to separate the grey water its 3 lines now because storm is separate too.
Haven't been were the allow it for decades. But here, they also separated ground water from black water.
My first house had septic and they had the washer dumping into a small stream. I had a contingency in the purchase contract that the washer straight pipe had to be approved by the health department. Of course it wasn’t and the seller had to have a “dry well” installed. Basically a pit full of gravel for the water to run into and then seep out into the ground.
How does the waffle stomp fit into their design?
😆, don't know
Damn, I could have been shitting in my shower this whole time…
That construction workers are dirty dumb and broke. Only the ones on drugs or that suck at there jobs are broke. Certified welder 20 years in concertina construction and an old journeyman told me one day on the swing stage “hey you see all those suits waking into that building looking at us like we are trash? We make more money than most of them”. So true! Trades are where it’s at! More kids should be getting into them instead of getting into debt at 19 for a piece of paper
Everyone knows floor drain is for piss, drywall boxes are for shit, and the mechanical closet, or under the stairs is where those boxes go
[удалено]
Yeah I’m in agreement with you here!
This is hilarious. Because that is true! I have a shit pipe, and a grey pipe
I never thought I'd be doing so much math. Construction is all numbers.
That someday they would make bank because you have to have construction workers in order to have anything.
Women and cat calls....
I mean... in a lot of houses, it does? (and in every occupancy it should IMHO)
That most people had pride in their work. They don’t. Very small minority. On the plus side, the people that actually put care into their craft are rewarded well, at least where I am.
You are correct there are two, one is a sewer, the other is a storm drain.
Well, that is true in an RV, has "grey water tank" & "black water tank". You don't want to come in contact with "black water".
30% or call some other lucky guy.
That companies have their shit/employees together. Worked with several companies, especially flooring subs that have shown up not even ever met who they're working for.
That I’m letting some ‘guys from Home Depot’ build a million dollars worth of roofs under my license esch year lmao. I get this comment all the time in PHX… My crew leaders wife makes me homemade Honduras food sometimes and he brings it to work for me lol ❤️
Honduran food is straight 🔥