# Design and Build Fee Structure



## Contact_It (Apr 15, 2012)

I was wondering how much a general contractor would charge to have a project built from design to construction. For exmaple If I had a team of architects, designers and trades people (that I would manage) and over see the project with. How do I charge for a job like this? Do I take a flat consultation fee, Do i get everyones estimate (trades, designer, architect and charge a base fee on top?

If anyone can explain the most efficient and profitable way to structure this I would appechaite it. :thumbup:


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## Kent Whitten (Mar 24, 2006)

Try this

http://www.contractortalk.com/f16/pricing-estimating-success-27899/


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## greg24k (May 19, 2007)

Contact_It said:


> I was wondering how much a general contractor would charge to have a project built from design to construction. For exmaple If I had a team of architects, designers and trades people (that I would manage) and over see the project with. How do I charge for a job like this? Do I take a flat consultation fee, Do i get everyones estimate (trades, designer, architect and charge a base fee on top?
> 
> If anyone can explain the most efficient and profitable way to structure this I would appechaite it. :thumbup:


GC trade comes with experience, I can lay the whole structure out and you still gonna get screwed. You will never get a price together if you never done this and nobody will ever tell you what to charge, because nobody knows the design, your overhead, etc. Stick to electrical or bring in a partner with experience and work out the % rate i.e 65/35 etc and make money that way. 

Good luck


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## Contact_It (Apr 15, 2012)

Kent Whitten said:


> Try this
> 
> http://www.contractortalk.com/f16/pricing-estimating-success-27899/


Thanks


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## Contact_It (Apr 15, 2012)

greg24k said:


> GC trade comes with experience, I can lay the whole structure out and you still gonna get screwed. You will never get a price together if you never done this and nobody will ever tell you what to charge, because nobody knows the design, your overhead, etc. Stick to electrical or bring in a partner with experience and work out the % rate i.e 65/35 etc and make money that way.
> 
> Good luck


I have all the experienced trades I need and they work on high end residential homes with complex designs so I know they do a good job. A friend of mine is in the web design industry and set up a bunch of websites that generate leads for both commercial and residential clients. I know if I got 1 commercial client through their and did a good job it would be much more profitable than the current electrical work I'm doing. More so the site is generating a steady stream of leads so I think it would be advantageous to learn more about how to do the project management of a job and I think the profits would be much higher as well.

I don't see how it would be overly complex in determining a price. I'm not going to be building homes from scratch. Just doing renovations and maybe additions. Also I don't see how I could lose money if I figure out an accurate way to determine price and I have skilled labour in place.


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## DaVinciRemodel (Oct 7, 2009)

Contact_It said:


> I have all the experienced trades I need and they work on high end residential homes with complex designs so I know they do a good job. A friend of mine is in the web design industry and set up a bunch of websites that generate leads for both commercial and residential clients. I know if I got 1 commercial client through their and did a good job it would be much more profitable than the current electrical work I'm doing. More so the site is generating a steady stream of leads so I think it would be advantageous to learn more about how to do the project management of a job and I think the profits would be much higher as well.
> 
> I don't see how it would be overly complex in determining a price. I'm not going to be building homes from scratch. Just doing renovations and maybe additions. Also I don't see how I could lose money if I figure out an accurate way to determine price and I have skilled labour in place.


If you have all that going for you – what are you asking for?


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## Contact_It (Apr 15, 2012)

DaVinciRemodel said:


> If you have all that going for you – what are you asking for?


I'm an electrician, I only know how to price out electrical jobs and I got a few books on the different trades so I know what to look for when project managing but in terms of having a pricing structure in place where I can make a predictable and fair profit is what I need.

Basically I don't want to look like a rookie (despite being one) and I want to be as competent as possible when pricing out a job and giving reasons for my prices/fees. I just don't know whether to charge a base fee, add 10% on top of everyones estimates, 20% ? I don't know what you really charge to project manage a job because I'm used to working by the hour dong labour. I guess I'm trying to make a transition from trades to business skills and my business skills are lacking so any help would be great.


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## DaVinciRemodel (Oct 7, 2009)

Contact_It said:


> I'm an electrician, I only know how to price out electrical jobs and I got a few books on the different trades so I know what to look for when project managing but in terms of having a pricing structure in place where I can make a predictable and fair profit is what I need.
> 
> Basically I don't want to look like a rookie (despite being one) and I want to be as competent as possible when pricing out a job and giving reasons for my prices/fees. I just don't know whether to charge a base fee, add 10% on top of everyones estimates, 20% ? I don't know what you really charge to project manage a job because I'm used to working by the hour dong labour. I guess I'm trying to make a transition from trades to business skills and my business skills are lacking so any help would be great.


Contact, we’re walking a fine line here – but let’s try to keep the thread from getting shut down. You should charge an amount equivalent to the value you bring to the consumer. If you add 1000% in value – charge 1000%. If you add 1% in value to the consumer – stay an electrician.

You need to determine what value you add as a Design/Build GC and sell that value. There is no "standard". Good luck!


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## Contact_It (Apr 15, 2012)

DaVinciRemodel said:


> Contact, we’re walking a fine line here – but let’s try to keep the thread from getting shut down. You should charge an amount equivalent to the value you bring to the consumer. If you add 1000% in value – charge 1000%. If you add 1% in value to the consumer – stay an electrician.
> 
> You need to determine what value you add as a Design/Build GC and sell that value. There is no "standard". Good luck!


Thanks, I'm new here so don't really know the ruels and I'm more of a labourer than a biz person so hope I didn't have bad intentions posting the topic just wanted some more information about it.

So just to get a run down of how things would go, I would contact the interested client, say I'm sending out some guys their to give an estimate, they would send the estimate to me, I would put a x % management fee for me, over see the finer details of the job and that's it?


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## greg24k (May 19, 2007)

Contact_It said:


> Basically I don't want to look like a rookie (despite being one) and I want to be as competent as possible when pricing out a job and giving reasons for my prices/fees. I guess I'm trying to make a transition from trades to business skills and my business skills are lacking so any help would be great.


Looking like you know everything and not knowing nothing it will not get you very far... you only asking for trouble and a lawsuit... not to mention all other liabilities. 

If you want to make a transition start learning at the bottom and work your way up. Last thing you want is practice at someones expense and get over your head. 

If I want to become an electrician, I get a job with one and learn from pulling wires to wiring electrical panels etc. It's pretty much common sense here and if you read what you wrote, you will see you're not making any sense with the approach you trying to take. Maybe at DIY chat you get some applause... this is a site for Professional contractors, so don't take this personal if you don't get a pat on your back.

Good luck.


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## Contact_It (Apr 15, 2012)

greg24k said:


> Looking like you know everything and not knowing nothing it will not get you very far... you only asking for trouble and a lawsuit... not to mention all other liabilities.
> 
> If you want to make a transition start learning at the bottom and work your way up. Last thing you want is practice at someones expense and get over your head.
> 
> ...



It's ok I understand your view point, No hard feelings. I guess I got the idea from my friend who has some lead sites and the builder we work for has never worked a day of construction in his life yet builds some of the finest most luxurious homes in the area and has a all star celebrity clientelle. 

Like how can one be a builder be experienced in every single trade, I don't think he knows nearly as much as the trades people do he just knows the finer details of what to look for and to get the job done correctly. I think it may depend on people, if you have good pepole and you know the finer points of the project I think it might be a success. Would like to hear what you think. Sorry if I sound like a rookie or if my questions are dumb but I'am.


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## DaVinciRemodel (Oct 7, 2009)

Contact_It said:


> It's ok I understand your view point, No hard feelings. I guess I got the idea from my friend who has some lead sites and the builder we work for has never worked a day of construction in his life yet builds some of the finest most luxurious homes in the area and has a all star celebrity clientelle.


He apparently can sell it and has a contact list to sell it to.



Contact_It said:


> Like how can one be a builder be experienced in every single trade, I don't think he knows nearly as much as the trades people do he just knows the finer details of what to look for and to get the job done correctly. I think it may depend on people, if you have good pepole and you know the finer points of the project I think it might be a success.


I don't know as much as my trades guys do either. I make my $ because I’ve assembled a great group of trades that focus on customer service rather than being the fastest, cheapest, best...

I have discovered that my customers want service... nothing else really matters. Now that I know that - I can charge 1000% of cost :laughing:


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