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Builder fixed fee question?

Posted by agentslim (My Page) on
Mon, Aug 13, 12 at 19:36

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!

Follow-Up Postings:

RE: Builder fixed fee question?

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.

RE: Builder fixed fee question?

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.

RE: Builder fixed fee question?

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.

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