grumpyvette Posted July 23, 2004 Share Posted July 23, 2004 Ive been contacting all the local guys that have GARAGES similar to what I want built, one factor seems to keep poping up! those guys that contracted the whole job out payed a whole lot more than the guys that pulled thier own permits and sub contracted each stage of the project and schedualed thier own inspections. I know that CONTRACTORS need to make a living too, and I dont have a problem with them making 15%-25% on the project that will cost $50,000 -PLUS but I priced materials and have researched labor rates and it seems they all want to make 100% profit on the job,I.E. if the parts and labor will cost $40,000 they want $80,000 for the complete garage , is this normal or am I just running into the wrong contractors???? Quote Link to comment Share on other sites More sharing options...
280Zone Posted July 23, 2004 Share Posted July 23, 2004 I think that is going to be a pretty standard answer. I have heard that 50% is the rule of thumb for building it yourself vs having it built, but that was in the housing industry (which I would guess is the same people). Quote Link to comment Share on other sites More sharing options...
Tim240z Posted July 23, 2004 Share Posted July 23, 2004 Don't forget the overheads a general contractor has....insurance, bonding, payroll, rent, etc that they have to maintain. It's always cheaper to be your own general contractor if you have the time and knowledge..... I'm busy with an addition to my house and garage, but the contractor is my Brother in law and he is doing at zero profit (or at least very little), so it helps to have someone that you know and trust when it comes to building contractors....I've heard all the horror stories!! I personally think that local municipalities are a little easier and more lax with you if you as the "homeowner" pull your own permits.....my contrctor had a hell of a time with the City getting the permits approved....for stupid stuff too!!! Quote Link to comment Share on other sites More sharing options...
johnc Posted July 23, 2004 Share Posted July 23, 2004 but I priced materials and have researched labor rates and it seems they all want to make 100% profit on the job,I.E. if the parts and labor will cost $40,000 they want $80,000 for the complete garage , is this normal As Tim said, there's a lot more to the cost of a job then parts and materials. 1. City and county permits and the time it takes to make the drawings, submit then, go down to the city and argue, etc. 2. The contractor's overhead - insurnaces, facilities, equipment, administrative costs, marketing costs, etc. 3. Subcontractor management. 4. And the BIG one - customer costs (project changes, site access, neighbors, payment problems...) Quote Link to comment Share on other sites More sharing options...
CruxGNZ Posted July 23, 2004 Share Posted July 23, 2004 Are you willing to build the garage yourself? It's very easy! I needed another hand building a 30X24 garage this week, so I had my 21 year old sister help me. She thought it was fun, loved using the cordless nailers. Pull the permits, and schedule everything yourself. Just make sure you talk to the trades and tell them what you want. Treat them like they are your friends and you will get much more out of them than you expected. If there was a problem that might interfere with another trade, talk to them, let them know what's going on. Comunication is the biggest thing that people lack when they do it themselves. We have to know what's going on! There has been so many times that I've shown up at a job and something wasn't done, because of a problem someone had. Now I'm there and can't do what I was supposed to and I'm pissed, because I have been driving around for no reason and I could be doing something else to make money that day. All it would have taken is a simple phone call to the people the problem affected, when the problem happened. Know what you want and the less changes you make through the project the better people will like you . Sit down with those local guys that did it themselves and ask them, "if they could do it over, what would they change?" and "what mistakes did you make". !M! Quote Link to comment Share on other sites More sharing options...
Z-Dreamer Posted July 24, 2004 Share Posted July 24, 2004 Grumpy Vette, As a General Contractor I run into people all the time that just don't understand why I charge the rates I do. Well let's see, first as a business owner I MUST MAKE AT LEAST TWICE what I pay a journeyman employee for any given job, even if I don't lift a finger! For example, most people have no idea what Workers Compensation Insurance costs an employer in the state of California, not to mention payroll taxes and all the other costs of running any business. Expenses like bonding and licensing with the state and every city, town and county that you want to legally work in. Also the General Liability Insurance that I carry that cost me several thousand dollars every year! Sure I have lots of write-offs, but remember it's all "out of pocket" expense wise! As to material costs, if I have to provide materials on a job (most jobs require this) then I will add at least a 10% mark-up for my trouble! As to charging 100% on a job, depending on what part of the county you're in, that is about right! Remember, it's not all profit! Bottom line is " If I can't earn more than a well paid employee, then why am I in business?" As to being your own contractor, it's not that difficult, but do remember that it is time consuming and if you call me or any other contractor for advice on "How do I do this?" we will more than likely charge you for our time! Mark Quote Link to comment Share on other sites More sharing options...
Drax240z Posted July 24, 2004 Share Posted July 24, 2004 It's similar in the automotive business... Our shop rate is $50/hr (cheap around here) and we had some guy complain that he was a biologist and wasn't making $50/hr, what makes us so special? Well... as you can guess the overhead is significant. Our shop rate might be $50/hr, but as an owner at this point I think I figured I am making about $2.50/hr so far this year. The joys of a new business! Quote Link to comment Share on other sites More sharing options...
240Z28 Posted July 24, 2004 Share Posted July 24, 2004 Grumpy, If you have the time, go for it! I work as a construction manager for a large general contractor and yes you will save a LOT of money. Be prepared for a lot of headaches, problems etc. but when it's done you will have a big sense of accomplishment and will gain valuable knowledge in the process. Quote Link to comment Share on other sites More sharing options...
Mikelly Posted July 24, 2004 Share Posted July 24, 2004 Grumpy, This is the same thing I ran into. I did most of the job myself when I built my garage, sub-ing out only the concrete, insulation, roof and shingles. What Mark and others are saying is correct. THere is a LOT of overhead to cover all the associated costs of being a "LEGAL" business owner with employees! You can save a LOT of money by being the GC yourself. If you have the time to run to the county and deal with permits, and engineering drawings (I had issues with my footers that required a certified engineers drawing!), then you can save a bundle. That is EXACTLY what I'll do when I build the next garage. I won't be picking up the tools as much as the phone next time, thats for sure! Mike 8) Quote Link to comment Share on other sites More sharing options...
johnc Posted July 24, 2004 Share Posted July 24, 2004 Our shop rate is $50/hr (cheap around here) and we had some guy complain that he was a biologist and wasn't making $50/hr, what makes us so special? Maybe because Mr. Biologist's life and the rest of his family's life depends on the competence of the mechnic working on the car? I've used that one before and it sure shut one doctor up. Quote Link to comment Share on other sites More sharing options...
waynekarnes Posted July 24, 2004 Share Posted July 24, 2004 asked a contractor friend of mine, recently retired. asked him if wanted to go to fla to build you a garage. he's in Ga. he owns 4 z cars. his reply ... Maloxahatchee, fla ?? For yrs contracters in GA have been taking $10k deposits from widows and movin to FL. I dont know the Gen Cont markup now. Used to be 20%. I know 50% of net [after expenses] goes to taxes. Not as easy as folks think. Guy at the shop just had 30x40 slab and metal building with 12' walls done for $20k 1200SF for $17 per. SWEET needs wiring. Quote Link to comment Share on other sites More sharing options...
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