Is it rude to ask builder to disclose costs/profit?
We are currently having site work done on our property and will have the foundation put in mid next month.
Our builder gave us a contract that had standard legal mumbo-jumbo, then build relevant things (type of materials used, etc), then the allowances. The only thing that actually discloses monetary amounts are obviously the allowances.
I wanted to ask him what his mark up is, if its a percentage of the cost to build, or something else, but my husband says that its not appropriate to do so.
I want to now even more so because of a statement he made when we were onsite last week. He said, "The lot's turning out to be a real workable lot. When I first saw it I thought it was a disaster that would need $50,000 in site work, but its not looking like that at all, its actually a nice lot." Now, my question/concern is say the excavation work comes out to $35,000, throwing in 20% comes out to $42,000, what happens to the remaining $8,000? Does it automatically go into his pocket because I never asked about those figures? He has openly and repeatedly said, anything left over on the allowances he will write me a check for.
More over, the area for the back yard has a 20' difference in grade from back to front, and I would rather the possibility of money left over to go to leveling out the backyard, not necessarily back in my pocket.
So, is it okay for me to ask how much he is making on our house, and specifically on each section? Can I make an addendum to the contract that asks for full disclosure? Or maybe invoices?
I find it hard to believe that in the over 300 homes he has built, not one person asked him about his profit margin.
Thanks for any input!
This post was edited by CallMeJane on Thu, Mar 21, 13 at 18:12