We believe that as contractors we have an obligation to save our clients’ money wherever we can. Due to high mark up on materials and labour by some contractors, clients who build upmarket luxury homes have opted for a project management model on a cost plus basis.
How it works is the contractor does a quote for material at cost and prices labour component of the project at cost. This creates a transparent situation where client can see cost price on materials and labour without mark-up charged by the contractor. The client has the flexibility to source alternative price competitive quotes on materials or from subcontractors for labour and materials of their quality choice . The client will pay suppliers and subcontractors directly for materials and labour giving the client an opportunity to save on mark ups on material and labour that would have gone to contractor as profits.
The client and contractor will negotiate a fixed monthly project management fee for the duration of the project. The contractor will be responsible for managing the project and subcontractors from start to finish. With the assistance of our experienced project management team who are able to start and finish and are able to operate software such as CCS and MS project .the client will need to be project involved since they are in responsible for controlling costs.