There are mainly 2 ways to build a home:
The most common is to entrust all the work to a Construction Company -which will become the Main Construction Company-. This can contribute to its workers and/or subcontract other companies and self-employed workers to carry out the different work items.- If the work is contracted for trades, it is the owner/developer who directly contracts several companies and/or self-employed workers.
In the first case, all companies and freelancers participating in the work depending on the Principal Construction Company. In the second, several companies and freelancers depend on the owner/developer.
Can you save that much by batching?
In most cases, the economic “savings” are much less than what the owners believe.
There are two main things to keep in mind:
- The price that can be obtained by the main Builder of a subcontractor is going to be better than that which can be obtained by a particular developer who is only going to do one project. In many cases, the contractor’s margin will equal the final price that the developer achieves on his own. Also, in the margin of the contractor, there is planning, coordination, management, etc.
- The price of the materials also usually varies. When you get a discount on the purchase of a shower tray (for example) of 20%, the Builder will get it off 30%. Also, the construction company will pay 10% VAT on their invoice (if it is the first home), while if you buy the material, you must pay 21%.
Safety and Health at the construction site
Another cost of hiring several companies is the issue of security.
Safety and Health of the different companies
To start, each Construction company must comply with all the applicable regulations in Health and Safety, and in Occudecknal Risk Prevention. Furthermore, it must be complied with both by the company itself (its workers) and by the subcontractors and self-employed workers under its charge.
In other words, this would take care of everything with a single company, including the deficiencies of one of the subcontractors. If you have several companies hired by you, each of them you will have to demand the same as you would demand of only one. Do I contract with a single construction company to make my house or for trades?
Who puts the “common things”?
In work, there are many structures that “everyone will use.” In the absence of the Main Builder, all of them should be put (and paid) by the developer/owner.
It is very easy to tell the Builder that you are “inflating” 20% of the budget of a subcontractor. However, when you count the construction fence’s price, the construction shed with its bathroom, the crane, etc. you realize that in that 20%, there is usually no more than 10% profit.
The coordination of the different trades
With a single construction company, there will be one person in charge – be it the Site Manager or, at least, in charge – of carrying out this coordination. If that figure does not exist because you have contracted the work by trades, you will have to be the one in charge of calling each other, organize them on-site when their works overlap or control that the works are finished to notify the next company of let it in.