Builder fixed fee question?

agentslimAugust 13, 2012

Hi guys,

Our plans are in the permit phase and we are negotiating with a builder we like.

Here's the scope of the job

3400 sq ft single story

Central California

500k cost to build

Builders fee is 95k

Site supervision fee 35k

So he's pretty much charging $130k.

I start searching for another builder?

Is that a reasonable price? Help please!

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robin0919

That doesn't make sense! Well.....for CA anything goes but the GC IS the site manager which should be included in their fee!! If s/he is adding that on up front, be ready for ALLOT of up grade fees! Talk to several more GC's and find out if that's in line.

    Bookmark   August 13, 2012 at 10:16PM
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pps7

I don't know about California, but in the Midwest that would be outrageous, unless these fees include something our GC did not. Here 10-12 percentage is the norm. It was 15% back in the day when real estate was booming.

    Bookmark   August 14, 2012 at 12:24AM
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david_cary

We had that around here back in the day. Fee would be 18% and they would also bill the supervisor's time which usually came out to $30k or so.

Now 15% is more normal and I believe all the builder's that charged supervisor's time are bankrupt. Hubris extends to other things.....

You should certainly be looking. I would expect that central CA is not a crazy expensive place for these things - you should be able to be in the 15-20% for total GC build. I'm sure that CA is still CA in the PITA factor for building.

    Bookmark   August 14, 2012 at 4:26AM
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