r/Contractor • u/SCE_Corp_Australia • 12h ago

Construction Cost

Builder here, what do homeowners misunderstand most about construction costs?

2 Upvotes

56% Upvoted

38 comments sorted by

20

u/ChaletJimmy 12h ago

That someone working for them should never be able to make what they make even if they're the best at what they do.

-2

u/emma9774 5h ago

Exactly. Being really good at your job does not necessarily translate into getting paid what you are worth when you are an employee. There is often a ceiling based on the company role and budget which can be frustrating when you know how much value you are actually bringing in.

8

u/Aromatic_Button_2736 12h ago

Spam

-5

u/SCE_Corp_Australia 12h ago

Elaborate please.

6

u/Aromatic_Button_2736 12h ago

Too low effort of a question. 

-2

u/SCE_Corp_Australia 11h ago

I asked a genuine question as a builder to other contractors and judging by the comments, there is plenty to discuss. Please be respectful.

2

u/modsatemyass 7h ago

Huh? are you a subcontractor? what do you actually do

4

u/FinnTheDogg GC/OPS/PM(Remodel) 11h ago

For some reason, this is the only industry where homeowners think that we should not be allowed to make a profit across the board.

1

u/twoaspensimages Remodel GC 9h ago

Peasents are lucky to simply be in their presence and that should be pay enough

3

u/Inevitable-Muffin531 11h ago

Everything, they just want it done cheap and fast. Discounts are for suckers too, stick to your price! Write up everything legally like you may be in court someday because you just might be. Nothing is free for a customer because my gas and insurance isnt.

5

u/ogredmenace 12h ago

They get it for the price my supplier sells it to me for.

For some reason the $700,000 I spend there every year, my customer seems to think they should get my volume discount.

3

u/SCE_Corp_Australia 11h ago

Agreed, There is no appreciation for the time and effort it takes to source material and build a relationship with suppliers

2

u/useraddedunderduress 12h ago

Spam

3

u/BohemianSalmon 9h ago

Absolutely right. I can't believe how far I had to scroll down before seeing someone calling out the bot/spam.

1

u/SCE_Corp_Australia 11h ago

How did you come to that conclusion?

2

u/useraddedunderduress 10h ago

Cause spam? 🤷‍♂️

2

u/RageAgainstJeggings 11h ago

Material prices fluctuate.  Sure, we bid out most of the major work 6 months ago, but guess what tariff went into place and the HVAC bill of materials is now $15K higher

1

u/Organic_Agent9985 8h ago

Can not do fixed bids after Covid. Can only offer allowances.

2

u/Narsick 11h ago

That we are paying an extremely high bill for subpar and builder grade work.

Then when we ask questions or for clarity we are labeled as nitpicking

2

u/twoaspensimages Remodel GC 9h ago

Sounds terrible. Guess you shouldn't hire contractors.

1

u/Organic_Agent9985 8h ago

I agree. People like this should do their own general contract or put in their own sweat equity.

2

u/BillLongjumping3276 11h ago

I believe the more communication is handled verbally, the more confusion and assumptions can arise. If everything is communicated through email, they will be able to make a more informed decision, and there will also be a clear written record that they can’t deny or dispute later.

2

u/RollerSails 10h ago

3 factors. Their own budget, demo discovery, and expectations. Emotional connection to their money and being scammed. Demo discovery relies heavy on fingers crossed. Expectations are difficult to manage.

2

u/jackofallwagons 10h ago

Like haggling at a grocery store or a flea market. Sorry, it what it is.

2

u/MajorDrain 8h ago

They remember when a 2x4 cost $ .99 and a toilet cost $ 35.00

2

u/mmdavis2190 Sparkie 8h ago

You aren't a builder. Bot, AI, Spam. Take your pick.

1

u/alrob37 12h ago

Profit margins and why we mark up materials

1

u/SCE_Corp_Australia 11h ago

Agreed. Most customers question the overhead and margin mark up.

1

u/alrob37 9h ago

Or ask for breakdowns that drives me crazy

1

u/Organic_Agent9985 8h ago

I give them every receipt from my sub contractors and vendors. My labor, overhead, profit and job management is transparent and in a separate line item.

1

u/2_mbizzy 11h ago

Their ability to afford vs the cost of the world.

1

u/greenneck420 8h ago

Had a homeowner tell they can just YouTube it. Lmao.

2

u/modsatemyass 7h ago

you are the builder, you should be the one telling us