How much does it cost when alterations occur during a custom build?
Technically, we try not to have any variations when building your home. Because we're working with you at the concept and design stages, there shouldn't be any variations unless there's something unforeseen.
For example, we did a fixed-price property but we hit water when we were drilling the piers so we had to switch piers. For the variation, I gave the client a copy of the quote that we'd received from the concreter to switch to the different piers so he was able to see what it was going to cost. Then we put our 20% markup on it, and that's all we made on it. I could've easily charged him 200% or more because there's piers and that's where all the builders make their money as well.
Therefore if there is a necessary alteration, I will give you a copy of the quote from the contractor themselves, we add a 20% markup, and that's it.
We'd done all your pricing and selection at your design stage, and we don’t have upgrade packages as opposed to volume builders.
You tell us what you want and we'll tell you if it fits into your budget. If it does fit within your budget, that's what we'll factor into your price. It's a fixed lump sum based on what we've decided from the start.
If we're building it halfway through and people want to alter something, which does sometimes happen, we'll price it and show you what it's going to cost. Then we just add our standard mark up to that price, which is agreed upon in the beginning within our start up contract.
All variations are costs plus 20%, and you'll know that when you sign the contracts.
So if there's anything major that we have to change whether its a material change or build, we'll get the person and the contractors to give us a quote for that, we'll stick our 20% mark up on it, and you'll receive a copy of that document to say that's how much the alteration costs, here's our markup, that's how much you'll pay us.
Book in a call to chat about your dual occupancy build!
ABOUT GIULIO RANERI
Giulio has over 23 years experience in the design and construction industry. The Company was started with the vision to change the way builders work with their clients.