ᐅ Proportion of trades as a percentage of the total construction cost

Created on: 19 Sep 2017 22:28
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_Nerz_
Hello,

the plan is a new build using solid construction methods.

I already have a turnkey offer from the same building company, as well as an offer that covers "only" the shell construction.

Both offers are based on the same floor plan.

Are there any experiences or benchmarks regarding the cost share of each trade (shell construction, electrical, heating, etc.) in the total construction cost?

Thanks for the information.
L
Lumpi_LE
20 Sep 2017 16:34
The shell of the building is often around 40%.
Of course, this varies, but it serves as a reference point.
You are at about 45%. This means you generally have a higher-quality shell compared to the interior standard, or in the case of the now experienced KfW70 house, a lower interior standard.
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_Nerz_
21 Sep 2017 07:15
Ok, thanks. The thing is, in the turnkey offer I only get the total construction cost and not the individual prices for each trade. Due to the lack of transparency, I had only requested a quote for the shell construction.
11ant21 Sep 2017 12:47
_Nerz_ schrieb:
The issue is that with the turnkey offer, I only get the total construction price, not the individual prices for each trade.

I would say that’s not a bug, it’s a feature.
_Nerz_ schrieb:
Due to the lack of transparency, I only requested a quote for the shell construction.

A package offer is not intended to educate the buyer on cost breakdowns. Its purpose is to be overall cheaper than the sum of its individual parts.

You can buy a Golf as a complete car, which is a perfectly good idea for its intended use. Or you can go around the corner—not through the main door of the car dealership but through the side entrance to the parts dealer. There you ask what the Golf would cost if you buy all the parts individually: six figures!

It’s similar with the general contractor, and there’s nothing inherently wrong with that.

Want special sport rims? Then order the car with winter tires. The same applies to house building: change the scope of work to basic bare bulbs hanging from the ceiling, and then get the fancy designer lights yourself from Ingvar Kamprad.

You can get separate quotes for each trade. But you’ll often find that while another provider might charge only 95% of what the general contractor charges for that part, which sounds like a 5% saving at first, the general contractor will reduce their overall price only by 92% if you exclude that part. In the end, it turns out about 3% more expensive. That’s the reality of packages.

This doesn’t apply to all items, and in total, you might still manage to save a few peanuts this way. But then you get multiple contacts to deal with if you need to address any issues. Is that really a benefit?
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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Joedreck
21 Sep 2017 13:10
That is correct; that is the standard practice. However, there are also other general contractors who offer a modular system. Services range from the shell construction to all other trades, which are also available individually. Very fair and transparent.
11ant21 Sep 2017 13:19
Joedreck schrieb:
There are also other general contractors who offer a kind of modular system.

Indeed, but essentially the package discount increases with the size of the package. This usually only becomes worthwhile if, for example, your brother-in-law is an HVAC technician. Removing small trades from the package is generally not very cost-effective.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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_Nerz_
23 Sep 2017 21:10
Planning 240 m2 (2583 sq ft) for the ground floor, upper floor, and basement. We have been offered a price of 700 euros per m2 (65 USD per sq ft) for the shell construction. Included in the price are a concrete stair landing, chimney, a cistern with 3500 liters (925 gallons) capacity, structural engineering, and architectural supervision. No roof is included.

What do you think? Is this too expensive or a fair price?