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#136:  Fixed Price vs. “Cost Plus” Contracts: Some Considerations

NH Construction Law

His price will typically be set to cover overhead costs and a reasonable profit. If quality is an owner’s priority, some think that “cost-plus-a-fee” contracts – reimbursement for labor and materials expenses, plus either a percentage or a fixed amount for overhead and profit – are the way to go.

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Getting the basics right (for residential contractors): It isn’t complicated

Construction Marketing Ideas

Adams Hudson reminds us his Contractors’ Sales and Marketing Inside r , that the basics behind AEC marketing — at least for the business-to-consumer residential sector — are quite simple. Michael Stone has some worthy resources to help out in the residential sales. Many leads and sales, but no money.

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What Is Estimate | Types of Estimate |Requirement Data for Estimation |Advantage of Estimate | Disadvantage of Estimate | Types of Cost Estimation

CivilJungle

The estimators should be experienced and thoroughly acquainted with the design techniques for reliable estimation. In the budget, allowance towards contingencies, 3 percent to 5 percent of the total expense, is designed to accommodate miscellaneous minor costs that are not part of any work item. Overhead Water Tank. #2.

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Common Types of Construction Contracts And Their Use

cnstrctr

The different types of construction projects include: Lump Sum Construction Management (Cost Plus / Guaranteed Maximum Price) Design Build Design Build Finance Maintain. This type is often used by governments and in simple residential construction. Construction Contract Types. Lump Sum Contracts.

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Rory Woolsey's Construction Estimating Blog: Mark It Up!

Rory Woolsey

“ What are the” appropriate” markups for overhead, profit and contingency when budgeting facilities construction projects?” ” I get this question a lot from my architect friends when helping them budget their projects through the design process. This is not unusual at the early to mid-phase of design.

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A Cash Flow Guide for Architects

Levelset

Where direct labor is the percentage of salaries that are spent on billable work (rather than overhead time). For custom residential design, Gray recommends 8% to 15% of the cost of the project as the design fee , depending on the complexity and scope of work. Example of revenue projection.

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Rory Woolsey's Construction Estimating Blog: A New Year in.

Rory Woolsey

The inventory of houses on the market is declining which is good for residential construction and on the commercial side there are many aged facilities that are in need of renovation or replacement. Kaiser Constructors and has worked on projects ranging from heavy, military, industrial, commercial and residential. Labor Productivity?