Forming a building company

[sports fan]

builders profits vary depending on the type of work they do and some include overheads in their profit margin.. im doing commercial work at the moment we keep over heads and profit separate e.g. foreman, contract administrator and project manager (builder) salaries are included in the projects cost and then we add between 10-15% on the whole lot depending on whether the tender is negotiated or hard dollar or if we need the work badly or not

its hard to compare apples with apples as small resi builders i know put 30% gross ontop of their costs and this includes both profit and oheads..

i think 20% blue sky profit might be a bit optimistic as you will need to add your additional profit on the sell price which may hinder them selling, what are you building anyway villas or units?

 

[Steve Fitz]

Well I don't accept this in my case. I understand where you are coming from but there are always exceptions to this rule - and I am one.

I have no idea of your ability and/or knowledge Rockstar, if you want to become a builder and say you have the goods, then by all means do it.

PS; I pulled out some weeds, mowed the lawn and changed a few sprinkler heads the other day - maybe i should call myself a landscape gardener?

 

[grossreal]

hi
Appreciate the concern GR,
I think you have me wrong i don't have concerns about what people do.
I just let people know
I am one of those if you wish to jump go ahead saves on hospital bills
but thats me
I have not got a real clue on margins for builderrs they just give a price but its just the numbers they tell me and the way the contracts are formed
I can find out thou if you want to know but it would only be for nsw as i have a few builders that I know

 

[Rockstar]

I think you have me wrong i don't have concerns about what people do.
I just let people know

Well I appreciate the information then.