This is for GC’s.
What’s the largest house you’ve done either turn key or as a CM? I’ve built up to about 7,000 as CM and my homes that I GC now are about 2,800 to 3,000. I just lost a 3,500 waterfront house because the architect didn’t get me plans in time and the client went with a builder who was able to get a price ($675,000) back before the holidays. Which probably means they’re not the kind of client I wanted anyway.
But, the same architect tells me he has a 15,000 square foot house he’s designing for a european client that he’ll try to push my way. It makes me a little nervous, not the building part, but the making sure I structure it so I don’t get bit in the end. This is the niche I want – large, custom, special homes. I thought I’d get a little fedabck from you all to help me sort things out. – Thanks.
Edited 12/23/2005 4:31 pm ET by ncbuilder
Replies
i have never managed or contracted a project anywhere near that size but i still have advice about not getting bit in the end, and it comes straight from another breaktime thread under the business category about what jobs to concentrate on from a markup perspective.
in doing a job five times the size of a normal job you run the risk of tying yourself up for a much longer time than normal. i would make an extremely conservative estimate of the time it will take, and then make an aggressive estimate of the profits to be made doing normal size jobs in that time, making sure to cover the end you don't want getting bit.
ps let me take advantage of this opportunity to solicit, i am located in oak island NC, and am multi-talented/skilled. please let me know if i can help....chris
i am curious as to why that is the area you want to concentrate on, i can't imagine there will be to many repeats in the 15,000 sq. ft. area. i do understand the market for quality work is not there in this area for smaller homes, still i'd be nervous.
Is the $675,000 builder a done deal? If you want the job, I don't know why you wouldn't call the owner and ask if they are interested in your proposal. As far as the architect dangling another one in front of you... believe it when you see it.
With a single large job that might be tieing up your whole crew. What happens if the job stops for some reason. You have no other jobs to fall back on.
Just a thought.