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Jerrold Brim AIA
Manager
Brim Consulting LLC Architects
Buffalo Grove IL
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I would agree with both responses recieved from Michael Smit and Burton Roslyn
and to a lesser degree with Sean Catherall; all for differant reasons.
First: Consider the big picture. You are designing and developing a project of your own making for both personal and marketing use. Any stigma attached to your efforts of this product percieved to be impacted by outside influences cannot be a good thing for future marketing or for future clients that do not share your enthsiasm for your contractor..The idea of sharing costs because youwii both benifit from showcasing the home, in my opinion, will never smoothly occur in the real world for a book full of reasons.In addition, if you even think you can negotiate a fair evaluation of benefits from this concept, your dream will never reappear since it has already passed.
Second: As you well know, every project incuding your home, wii have a number of general conditions which must be covered by the general contractor. For all other items, not general conditions, will require all sorts of administrative, co-ordination, supervisory, storage and asundry costs which must be paid for. Make the best good deal arragement( cost plus small override) to pay for these directly and do not expect the contractor to absorb these from an over ride of material purchases. Any other approach can almost guarantee a hissing match.
Third: There are no free lunches in this industry. The last person you want to have working on your project is a contractor who is making no overhead let alone no fee.
Your turn will come when and if he brings clients to your attention even if that client is him. How long will you provide free services on that project.Now re-evaluate my comments about determining each others value.
Fourth:Make a best deal arrangement( professional consideration)
on the ordering of materials based on the fact that you will pay directly for deposits, transportation, storage, tax, etc., etc.,etc.
Perhaps this is where his overhead can include a smaller amount of administrative time only. Be aware there is plenty of exposure here
Fifth:Michael Smith suggests you may be able to by reasonable appliance, furniture,cabinet and accessorie items directly at cost or less from manufacturers and local distributors and have them delivered (where?-depends on construction progress)and stored. Determine who pays for storage, transportationand when items are missing, broken, improperly filled, wrong finish etc. A lot to think about.
Sixth: When is the job finished and what leverage do you have?
.
If an offer looks too good...it probably is!
Original Message:
Sent: 11-20-2011 13:50
From: Heather Johnston
Subject: Architect's Own Home/Contractor Pricing
We're building our own home and expect wholesale pricing from the contractor, because the end product showcases both our work. Our contractor proposes marking-up his supplier's already marked-up prices, 'to receive deliveries, chase down missing parts etc.' Fair enough, or is it? Appreciate some feedback and thanks.
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Heather Johnston AIA
Principal
Heather Johnston Architect
La Jolla CA
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