AO Silver Member
Join Date: Dec 2011
The construction industry throughout works on very low profit margins. It was common for the company I worked for to price with a 3% net margin on contract cost. It is well known and accepted by professional clients that the real margin comes from variations which they try to avoid like the plague. It can become a real competion between the respective quantity surveyors to see who can gain the upper hand each monthly when the monthly measurement certificate is submitted.
However it was ever so. At the time my parents died, in 1969, my father was having a bungalow modernised for their retirement and it fell to me to sign off the final builder's account. I wish I knew then what I learnt as a civil engineer over the next few years. Father had constantly changed his mind about what was wanted and allowed the builder to modify the plans, a pitched roof to the extension become a flat roof because it would save money. Suprisingly the aged parent was an accountant and the builder one of his clients but that did not stop the builder charging for every little thing. It was almost as if the contract was based on cost plus (a profit margin) with even a yard brush included in the list of materials.
Procrastination is the thief of time