Re: contractor's quote (need help, is the price just right?)

Get a second opinion, ask another contractor for an estimate... Tell him sonny from court zone recommended you for a better estimate. http://cab1net.com/forum/viewtopic.php?f=60&t=733

Re: contractor's quote (need help, is the price just right?)

At today's prices a build from scratch (no existing structure) to a modest finish will set you back around 20k-25k per/sqm. If you want a premium grade finish around 35/sqm. should do it. For renovation works like yours, 15k-20k should be more than enough. This base figures include the materials + contactor's profit as well as the contingencies and mobilization fees. If you are not comfortable doing business with someone who you think isn't straight or is quite overkill w/ his offer then you should get more quotations to have a basis for comparison so you could renegotiate the price. The problem is with a contractor like that you might end up short ended as a result of the price cut down. I'd rather get a different contractor altogether. He is overkill as my brother is currently building a new 3-story structure at w/ a budget of only 15k/sqm including finish and is still dead on with their budget so far. He handles his own build but add in a modest income of about 12% on the base cost and still that is far from the 4.9M excluding fixtures and tiles that has been offered to you. I am a finishing specialist and have been in the construction business for more than 16 years so I know that offer maybe too expensive for your renovation requirement. There is another member/builder here by the name of Bryant77 . Maybe he can help you? His works are posted in this forum. Maybe you ought to check it out.

Re: contractor's quote (need help, is the price just right?)

thank you very much for the input. This is a new build by the way, not a renovation. im glad to hear from your side to validate that his initial quote is quite high, we are in the process of re-evaluating the costings and at the same time, i am seeking a second opinion/quotation from another contractor for an honest comparison. Our budget is set at 4M for this 3 storey residence and i believe we can achieve that at this price.

Re: contractor's quote (need help, is the price just right?)

meron ba plano at specs eto?
12% profit is okay
(same question sa tiskot)

i also posted this inquiry in another forum, but its just seems to be approriate here as this a portal for the pinoy handyman and experts - so here goes:

I asked a contractor to make a costing/proposal for me for a 3 storey residence. the house has 185 sqm of interior space (1st,2nd , 3rd floor) and 85 sqm of outdoor space (garage, terrace, patio, etc). The contractor quoted me a price of 4.9million. Based on my calculation, it seems that he is qouting me :
19k per sqm for the interior spaces (185sqm x 20k = 3.5M)
+ 8k per sqm for exterior spaces (85sqm x 8k = 680k)
+ 5% contingencies of subtotal (209k)
+ 12% contractor's profit (503k)
for a total of 4.9Million plus.

My question is,do you think this is a fair deal? im not an expert here but i am surprised that the bill actually contains the
contractor's profit which is 12% of the total project cost. (I initially thought that contractors earn only through discounted
prices and marking up labor costs versus what is seen in the quotation). in other words, sa costing.. does the 15k-20k per sqm cost include the contractor profit or not?

Also, I wasnt expecting the bill to be this high as the design of the residence is modern/minimalist type, and the quotation
doesn't include tiles (floor) and plumbing fixtures as this will be the preference of the owner.

Thanks for being a great source of information/opinion. appreciate the help!

Re: contractor's quote (need help, is the price just right?)

The quoted 4.9M the contractor can already include the tiles & fixtures.
The 12% contractors profit (503K) is fair enough for the whole project duration.

Cost parameters will depends on the material specified, 20K-25K/sq.m construction cost already includes contractors profit as well as finishing materials.

Re: contractor's quote (need help, is the price just right?)

@mig21. Saan location ng project mo bro? kung sa cebu yan TIGBAS na nga presyo sa imong contractor bay? ok lang yong 12% contractors profit kung wala pang markup yong labor & materials. pero basi sa binigay na presyo, katumbas na yan sa "ALL In" ang per sq.m. cost nya. BTW 30% lower ang labor dito compare sa Mla.

Re: contractor's quote (need help, is the price just right?)

@bmac . yes may plans and specs na.
@bryant77 so if 20-25k/sqm includes contractor's profit and finishing materials.. 15-20k / sqm does not? tama ba?

@fortnapz. cebu bai! hehe. stupid question, but how would i know na markup ang labor and materials? if may mark-up, you suggest its better we do away the 12% profit?

thank you all, definitely helpful while im still in the negotiation stage 🙂

Re: contractor's quote (need help, is the price just right?)

One of my professional services is arbitrating disputes between owners and contractors.
Let me put it to you this way:

Can you afford it (even if it hurts)?
Are you assured you'll be happy with the result and the time consumed?
If yes to both, it's a good deal.

I've seen too many clients dumpster-diving for cheap contractors, only
to regret it later when massive delays and backjobs eat up whatever
they thought they'd saved by going cheap. I've seen too many projects
abandoned mid-construction because the contractor used too small a
margin in his quote, and got trapped by unexpected increases in costs
of materials, or (more often) because the contractor was a lying sack
of brown goo with zero scruples.

I try to weed out such bad apples during biddings, but sometimes an
owner will ignore my advice and go for cheap. INVARIABLY, such an
owner comes to regret it, and winds up paying more; taking on a load
of life-shortening aggravation for good measure. A contractor w/ good
qualifications/reputation/references is requirement number one.

JM2

Re: contractor's quote (need help, is the price just right?)

To add, have it done the way you really want it to be, that is not to have add-ons later on. It will be easier for both you and the build if done this way, plus it will be cheaper in the long run rather than adding stuff later on. Decide on which finish you want "right from the start," and be sure that you'll be happy with it for several years. It's costly to change/refinish. Visit builder depots and select from a variety of materials/brands you want to see in your house. btw, the 15k-20k is fair enough.

if you want and if your contractor agrees, have them build the bare structure and you supply the finishings yourself (ie tiles, paint, t&b fixtures, etc...) - in that way you'll have more control over what you really want and how you intend it to be.

Re: contractor's quote (need help, is the price just right?)

@bmac . yes may plans and specs na.
@bryant77 so if 20-25k/sqm includes contractor's profit and finishing materials.. 15-20k / sqm does not? tama ba?

@fortnapz. cebu bai! hehe. stupid question, but how would i know na markup ang labor and materials? if may mark-up, you suggest its better we do away the 12% profit?

Some contractors present a bill of materials and labor estimate during negotiations. In the absence of a detailed offer then the base cost per/sqm. is a good assumption in project estimation. Regardless of how much profit margin a contractor makes you must be able to clarify the elements of what you are expected to get in his offer. If he says he will deliver a shiny new apple for a $1 then make sure there are no hidden worms in it and decide if at that price you are willing to bite. If another party says he can beat the offer at a much lower price then you scrutinize more to understand how he will be able to do that or be suspicious if he will give you a hollow promise or an adulterated result.:detective: The prices or estimates we have presented are based on our experiences as contractors but only covers the simplicity of your description. Your final treatment or preferences will have so much weight on the budget outcome.:goodluck:

Re: contractor's quote (need help, is the price just right?)

IMHO: as always, its better that the owner to have a base price for the project. if its 4M, regarding the existing plan & specs, if and when the plans & specs supersede (the 4M) then the contractor can submit downgraded bid (less specs on tiles, ceilings, paintings, others) with the perusal approval of the owner.

Re: contractor's quote (need help, is the price just right?)

I can understand you Mig21. Almost always, would be home owners are surprised by how much building a house would cost and tend to go for the cheapest quotation as said by Horge. Well, it all depends on what you want and how you want it built.

The initial quotation you got from a contractor (P15k/sq.m. exclusive of contractor's profit) for a house with simple finishing (just about better finishing than a low cost housing) is good enough as basis for an estimated project cost but should be taken only as indicative cost. A P20k-P25k/sq.m. (all-in?) cost as told by willyfernando is also just about right considering you want a 3-storey house. Costs tend to go higher per sq.m. as the building gets higher because of associated costs. I agree with timber21 that you have to check and compare with other contractors' quotes to get a feel of what is the most reasonable price.

Re: contractor's quote (need help, is the price just right?)

PHM folks,

im new here. ask ko lang po if pano maki pag deal sa pakyaw sistem.
i have a new single attached house and i wanted to make addtl rooms on the ground and
2nd floor.
i want to know panu un computation sa pakyaw sa labor lang.
i have to buy my materials. tnx

Re: contractor's quote (need help, is the price just right?)

PHM folks,

im new here. ask ko lang po if pano maki pag deal sa pakyaw sistem.
i have a new single attached house and i wanted to make addtl rooms on the ground and
2nd floor.
i want to know panu un computation sa pakyaw sa labor lang.
i have to buy my materials. tnx

Take the case of pakyawan like this...

1.) Average wage rate of worker = P500-700/day (8 hours work) unskilled/skilled x number of workers required for the job x Estimated number of days of work from start to completion and turnover.
2.) Wear or damage cost of equipment including replacement parts cost that "Manny Pakyaw" may incur during the course of the contract.
3.) Add all of these and then consider a profit margin between 20-30% for "Manny Pakyaw" (this is where the gruesome task of Tawaran will begin).
4.) Miscellaneous expenses you may incur just to have this done by "Team Pakyaw" like food(pamerienda), electricity and water.

If ever I missed something and "Manny Pakyaw" charges you for it, report him to the BIR so they can freeze his "ass ets".:boxing1::D