Homeowner Forum / Construction / April 2006

I don't think the length of time is a factor.  I have been under the
impression that 20% goes to the GC.  So, if a builder submits a proposal to
you for $300k, then he's figuring to earn about $60k from the job.  However,
like everything else, that figure may have gone up.

Now lets talk about your budget a little.  Where did the 300k figure come
from?  This sounds like a home addition, can you confirm this?  Do you have
blueprints?  When we were designing our home addition, our architect told us
it should cost 100k-110k.  We started talking to builders and most came in
at 200-250k.  Actually, most builders wouldn't even talk to us because in
our area the job was too small.  If 300k is simply the amount you'd like to
spend, well, tell me where you're located in Chicagoland, what type of
addition, and how much square feet, and I'll be happy to give my opinion of
how reasonable that is.  When I applied for my building permit, I was told
the "assumed" rate was (IIRC) $225 per sq-ft.  That was summer/fall of 2004.
In my town, the building permit fee is partially based on the cost of the
project, which they assume to be sq-ft x $225.   That works out to 1333
sq-ft.

FWIW, doing an addition here might be getting easier.  The teardown jobs
were so easy and profitable that for a while it was hard to get truly
competitive bids.  By me, teardowns are getting hard to sell, and spec
builders are warming up to doing contract work again.  Not as profitable,
but you know what you're getting paid and when.

S

10%...thats 30,000 dollars, for that you get his insurance,
oversight and supervision.. some will charge more..some
less..but thats close.

and he will want to call all the shots because its his
liability.

Phil Scott