Consulting?

maj

What do you charge for your services Adam?

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Bone Saw

Now that feeble attempt at slander is just plain as unprofessional as it gets

Double-A

I guess its a good thing he's not building them in Toronto then. I have to agree with Bone - an unprofessional statement like this is just an invitation to step outside or to discuss the differences in regional building codes, which to some people is the same as an invitation to step outside.

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A+Carpenter

I charge $120 dollars an hour for consulting depending on the scope of the projects.

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Dan K

I think this is a really good question and that the recent thread responses really haven't addressed it very well.

There are many owner-builders or "wanna be" builders out there who need help for things only "experieced" contractors can offer.

How about helping owner-builders with:
-finding good subs
-reviewing bids for the best alternatives
-suggesting how one might value engineer something to make it better
-misc scheduling
-observing and reviewing subs work prior to payment/lien releases
-etc., etc., etc.

You could make a laundry list of these types of consulting services and probably actually make good money at it. People who need answers are willing to pay for it if you don't over value yourself and gouge them for it...

Dan K

Cole

Dan,
That is exactly what I am talking about.

I read that owner-builders build about 38-45% out of the total homes every year. If you think about it that is a big market.

Interesting?

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cssconstruct

Dan,
That is part of what we do. There are a couple of lawyers and engineers here in knoxville that thought they wanted to build. They are good at lining up investors, but bad at the day to day operations, or as they state "we're too old to babysit grown men"
I have found it to be a really good way of keeping your cash flow going while your own houses are going up. We sit down with them and price it out with our people vs. the subs they currently use. Also we find out which subs they really like and want to keep. Most of the time my cost including my profit is still cheaper than the raping they have been taking. Some things there is just no room for mark-up and that is where our management fee comes in. We charge anywhere from 3-5% of the listing price to oversee the construction. Now let me give you the downside, the first couple of houses with them are very time consuming. You have to break them of their bad habits, a lot of them still want to help, and set up people. They like to play on the skid steer and backfill. It is hard to do your job while they are still trying to dabble. Also cost vs value is another battle you will continually fight. I hear all the time" Well my last framer only charged $***, why is it costing $800 more? I have to remind them that their last house had cased openings that ran downhill, and walls that were not square. But once you get used to dealing with each other it is a lot of fun. They still get to design, pick out colors etc. You get to make money, build houses, and increase your name, all with someone else's money. I repeat though in the beggining there are a lot isuues that have to worked through. Even though they want to turn the reigns over, pride makes it hard for some, even if they have no idea what they are doing.

MikeONY

Construction consulting is a huge business, both commercially and for the homeowner market. School districts and municipalities pay fortunes to consultants on their capital projects to manage and evaluate the bidding process, etc., even when they have "experts" on staff. Seems this is often a lot of back-scratching, and a lot of this morny is wasted, but it is often anywhere from 2% to 6% of the total project cost! This can be in six or even seven figures for single projects in some towns/cities!!!

Of course there are also "expediters" called consultants who grease the way for permits and inspections.

Less often done for homeowners, but you'll see it on larger projects. Most people who have used architects in this role once learn never to do it again when the builder discovers framing design errors, there are huge delays and cost overruns, the architect starts recommending expensive change orders, and the Owner goes broke. Some engineering firms do consulting, as do inspectors.

The best consultants are usually retired builders or people who have hired a lot of builders!

Gordo

Got a call today from a new client that wants their shower inspected for leaks. The conversation started out with, "Can you give me an estimate to replace some grout, my husband will do the repair."

After asking some simple questions, I let them know what they needed was a "professional consultant" and the fee is $90.00. She said O.K.
The meeting is tomorrow morning. Should take about 20 minutes and the bonus is it is on the way to the main job we are working!

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Looks like some pros were here.

A+Carpenter

These are what we refer to as build jobs here in Texas.

Cole I thought you knew that. I make most my loot this way. And to remark on your last sentence would be. There is no thinking about it HUGE HUGE MARKET

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Gordo

Met with the client this morning. In and out in 20 minutes. She is already word of mouthing the company.

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Looks like some pros were here.