10% Handling Charge

silvertree

Gotta share this.
Picked up architect plans for a handicap bath. This is a prior customer, picky, but I made her happy first time around. In the scope is this "Contractor will supply allowance for materials, materials will be purchased at wholesale with a %10 handling fee added for contractor" then she gives an example. $100 for faucet, wholesale cost $70, plus $7 handling. $77 from $100 = $23 back to customer? I can handle this, but is this the New Economy?

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Kitchen, bath, St Paul remodeling
Minneapolis Remodel Blog
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neolitic

"...+ 10% for every lame billing question asked
about the allowance."

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(Sorry....it seems there really are dumb questions)

Leo G

So you are going to spend $15 in gas and an hour of your time to pick up this faucet for her for $7?

I think not.

Since when does the client write your contracts for you. If they can't afford you, they can't afford you.

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Custom Cabinets in Hartford County Connecticut

Mike Finley

Tell her she can have the materials at dead cost. Tell her to just send you an itemized list of every screw, nail, board, fixture, everything that is going into the project, and tell her when she picks it all up and takes it all home that you want them on site in order of installation. Also tell her to make sure she inspects everything for damage and to make sure it's exactly right. Also tell her to make sure everything is exactly as spec'd out, with no installation suprises. Also tell her she is responsible for anything that isn't right if it's discovered at time of install, also tell her not to even think of asking you any questions about any of it. Yes you have developed your knowledge over many, many years and are an expert at all this, but tell her that doesn't matter since she doesn't value any of that either... etc... etc.. etc..

If she doesn't want to do that ask her why? Cause it isn't worth the 10% savings for her to do all that? Then why does she think it is worth it for you!!!!!

send_it_all

More like:

Faucet-
List price = $100.
Cost to customer = $100

OCRS

+20%

Leo G

It's getting worth it to get that faucet.......

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Custom Cabinets in Hartford County Connecticut

Tscarborough

Be very careful on your bid to make exceptions and exclusions. Even after acceptance of the submittals, the contractor is still liable for specified materials and methods regardless of submittal approval.

In this case, you will have to except that payment clause on your bid, not your contract.

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silvertree

I was insulted by the implication, but her scope is going into my contract as I write it. I won't copy her wording. The job will be priced at cost plus what I need to run a business and make a good living. I won't and my plumber won't give her anything at "wholesale" plus 10%.
This person paid on time and payed full price last time. I just can't understand how a highly educated professional would give something like that to another professional. 3 contractors are bidding the job, all 3 are established with good reputations, and I know one of the other guys fairly well. I'd like to know what the other guys think. I appreciate the feedback I'm getting here, I got a little hot at first, but I will bid the job to make money, or move on to the next one.
I think people that do this are so clueless it isn't even worth trying to educate them.

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Kitchen, bath, St Paul remodeling
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Mike Finley

I think you are going to get a good education on your competitors when you find out who gets the job. Somebody will drop their pants.

silvertree

It won't be me dropping those pants!

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chirodox

faucet = $70.00 at home depot.
15 miles drive round trip in a ford F350 = $15.00
cost to drive to home depot for stupid faucet = $30.00
cost to return to home depot because someone opened the box and removed a part = $45.00
wholesale cost of faucet = $160.00
10% contractors markup = $16.00
total cost of faucet $176.00

Feel free to take off the 49.50 if you are lucky enough to get an unopened box at home depot.

neolitic

Who's going to buy a faucet from
the Despot anyway?

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(Sorry....it seems there really are dumb questions)

KillerToiletSpider

This is simple, take out a Sharpie and cross out this section of the scope, in her presence, and then ask her if she still wants a quote. If she says yes she has accepted your terms, if she says no, you didn't want the job to begin with.

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A flush is better than a full house.

silvertree

Thats what I decided to do!

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Kitchen, bath, St Paul remodeling
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silvertree

End of story, My bid came in at just under $46,000. Plus paint (which she wanted separate).
Winning bid $33,000 includes the painting. She called me up and told me this.
She would have been a PITA at 46K, at 33K she would be unbearable.

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Vote for Pedro
Kitchen, bath, St Paul remodeling
Minneapolis Remodel Blog
203K Loan Consultant Minnesota

Ivinni

Wow, 1/3 less. About equal to your market if I was guessing. Somebody's not gonna be happy at the end. Probably both of em.

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its not going to get better with straps, or new footings or even aroma therapy.

dirtdiggler pt2

i'd say you win this one, in the end

rustyjames

As they say: no deal is better than a bad deal.

Driftwood

Guaranteed,The Architect is hearding the Contractor! He or She will be running Your project,not You! She has entered into a contract to oversee You and subs. DON'T GO THERE! You have leverage with the customer,She wants You back! Be nice and have a cup of tea with Your customer. Explain how markup pays for Your cost of doing Buss.. NEVER use the Arch. again!!!!
PS this is My 47th Year as a remodeling Contr, Mistakes? I've made them all!!!!!