Negotiating contractor bids

[rickeyleee]

I am 66 and always planned on building my retirement home from Johns plans myself but after rebuilding a deck on cuurent house this past summer realized that it really isn't in the cards anymore.  So.... I've decided to be the contrator and bid it all out and supervise the project.  My question is.... would it make any sense to have everyone bid their labor and equipment only...... and me buy everything and have it on hand for them when they need it.  Is it ever done this way?   I just thought 1, I could shop and get better pricing and 2, they wouldn't have to go to all the trouble of figuring out all the costs when they bid, 3, I wouldn't have to go to all of the trouble now specing all of the materials to be used.  Thoughts?

[NathanS]

I know a carpenter that charges an hourly rate for him and his crew, he will tell you all the materials needed, and you buy them. That's the only way he will take a job, because he doesn't want to get stuck with someone that doesn't pay for materials. Knowing the hourly rate, then with his estimate of number of hours, I think it makes it easier to budget.

On the other hand, the excavator I used said he doesn't do hourly rates (or if he does, it would be something obscene) because he has a lot of technology invested in the machines to make jobs that used to take a couple days a few hours.

Another thing that is nice about this way - it would be easier to fire someone if you end up having any issues.

[Don_P]

LOL, I thought I was the only one. I've always tried to stay out of their materials and ability to pay for same. I provide a list to the client or have them set up an account that I can bill to. I am on the clock if we are hourly while preparing this but I don't take a percentage of materials, to each his own on how to handle that.

On this job I've been hourly, he has provided the material in the form of standing trees. No way could I have bid it but being hourly I'm good with whatever path we want to take.

If the scope of work is very well understood by both parties I'm not opposed to bidding. In that case with my business I'm more comfortable with a typical owner builder acting as GC, me as a sub bidding the framing/dry in. We have a shorter phase contracted for. We know what is required for men and materials to get it dried in. A safe stop point if you need to regroup. I've also bid through exterior finish so from the street it looks done.  A fair amount of the time I end up doing more later, other times I'll hand it back over to the owner to finish out. If they want to do a phase have at it, if they want to sub out a phase I make introductions.  There's an infinite number of ways to do it as long as everyone is agreeable to the terms and on board.

[Dave Sparks]

Many ways to do this and I think I have done all of them.  Since I am talking about Marine and Offgrid Solar as personal businesses, I will add one more.

When I was designing and installing marine systems I always liked when the client said, "I have this Raytheon Radar that I bought cheaper than your price will you install it?" I liked this as I had just time and materials on the job and if it went bad I was just billing more time.

My price for the radar was higher because I covered the install for typical 90 days in Marine. I am talking about boats/ships but it is the same with many other things also.

I would always ask about this in painting a house for instance? What happens if the paint starts failing? I am guessing there will be more support if the painter supplied the paint, Just guessing