Fontana Lake Topics: my take on cost
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Name:   itisd The author of this post is registered as a member - Email Member
Subject:   my take on cost
Date:   1/28/2009 11:01:56 PM

The 10% to 13% builder profit that has been quoted is not accurate in my opinion. What I have found on cost plus jobs is that the builder bugets the hard cost for building material and the labor cost and labor burden. Lets say that this comes to $400,000. I have found that to this figure the builder tacks on or adds his overhead. If that builders annual overhead percentage is say 18% based on his annual volumn , he then adds 18% to the $400,000 which now becomes $472,000. Then at the end of the job he is due his 10% profit which is $47,200.
He is not just making 10% but much more than that. His annual salary, superintendent salary, office cost, truck cost, cell phone cost etc is all that makes up the term overhead.
Other messages in this thread:View Entire Thread
Builders 250-400/sf - woodman60 - 1/28/2009 4:32:56 PM
     Builders 250-400/sf - lucky67 - 1/28/2009 7:24:27 PM
     Builders 250-400/sf - lake care - 1/28/2009 7:25:06 PM
     Builders 250-400/sf - Talullahhound - 1/28/2009 7:49:21 PM
     Builders 250-400/sf - Ulysses E. McGill - 1/28/2009 8:24:31 PM
          BTW - Ulysses E. McGill - 1/28/2009 8:56:40 PM
     Builders 250-400/sf - Barneget - 1/28/2009 8:26:06 PM
          Builders 250-400/sf - muddauber - 1/28/2009 10:24:18 PM
               $100-150 for a very nice house - Lakey - 1/28/2009 10:53:21 PM
     Builders 250-400/sf - woodman60 - 1/28/2009 8:35:07 PM
          Let us know - Talullahhound - 1/28/2009 9:34:02 PM
          Builders 250-400/sf - PC Al - 1/28/2009 9:52:31 PM
          Builders 250-400/sf - wix - 1/28/2009 10:04:36 PM
               Builders 250-400/sf - lucky67 - 1/28/2009 10:49:48 PM
                    my take on cost - itisd - 1/28/2009 11:01:56 PM
                         my take on cost - wix - 1/28/2009 11:32:53 PM
                              my take on cost - roswellric - 1/29/2009 10:47:15 AM
                         Your take on cost - roswellric - 1/29/2009 10:44:03 AM
                    bamaalum - wix - 1/28/2009 11:47:02 PM
          Builders 250-400/sf - roswellric - 1/29/2009 10:35:04 AM
     Builders 250-400/sf - water_watcher - 1/29/2009 7:14:41 AM
          Pure Propaganda - Swimmer27 - 1/29/2009 7:59:07 AM
          Builders 250-400/sf - woodman60 - 1/29/2009 9:17:31 AM
               Builders 250-400/sf - Swimmer27 - 1/29/2009 9:39:00 AM
          Builders 250-400/sf - Talullahhound - 1/29/2009 5:35:11 PM
     Buy-don't build - roswellric - 1/29/2009 9:44:18 AM



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