When costing building works, it is sometimes hard to know what contingencies have to be allowed for within the initial price. Sometimes with older properties the full extent of the work is not always known, for example, how deep the footings have to be dug or what services already exist underground. Add this to the constant alteration of material prices from the suppliers and you can quickly see the number of possible variables involved in calculating the price for building works.
Over the years we have found that it is not fair on the customer to be faced with a large bill for extras towards the end of the job as happens with some building contractors, or equally to have to incur a large percentage margin to cover what might happen during the progress of the work. We like the customer to be informed weekly about all costs involved.
We have found our system that has evolved over the past 15 years to be fair to both customer and contractor and by far the most preferred way chosen by most of our customers and in outline is as follows:
- We look at the work involved and give as accurate a guide price as possible.
- We meet with yourselves and discuss the various areas and costs
- We agree the various rates payable for the operations involved.
- When instructed to undertake the work we give a fixed starting date
- We then keep detailed up to date records of labour and materials used.
- Every week we furnish you with a weekly invoice for materials and labour
- All materials prices are checked monthly from BMMR trade RedBook.
- Records are kept by us on site visits, inspectors requirements etc.
- As work progresses customer is updated by reports as required
- We will deal with all local authority inspections, architects, etc as required.
Initially our customers like to know what is covered in the working day, and exactly how much each level of work is going to cost.
The main benefits to the customer are that you only pay for the work that is required, the hours worked and the materials used. The builder also benefits by being paid regularly and as a result has fewer overheads to be passed on to the customer.
All material prices are taken from the “Building Material Market Research Red Book” which is issued monthly, which lists all “heavy side” materials. Although this is a private and confidential book used in the construction industry we are will to allow you to inspect specific prices if required.
The success of this system relies on the willingness for us to allow you the customer to be informed weekly about all labour/material costs and any other relevant details.
The quality of the work is assured as all work is carried out in an efficient manner and inspected as required by the LA inspectors.
I hope that this system is of value to you for your particular project. However, it is for you the customer to decide what system will benefit your situation best. For further information do feel free to contact us directly.