SO you might save the 10% mark up that is typical. And you may pay more for labor depending on where the material is stored. IF its in the way and has to be moved etc. If your material you buy is sub par the contractor may not use it, or charge you more in labor to make it work. My own take. Is the small amount you might save worth the risk of having the wrong material. Not having enough material. (one run to get material will be a hefty charge from the contractor.) or having too much that you have to return. I had a customer decide to get his own sheet rock because of a good deal from a friend. He actually saved about 20% over my rockers price. However because of where he had them stack it it. It cost him about 15-20% from every sub for the problems working around it. (he refused to move it and wouldn't approve the cost of moving it. ) The biggest cost was time. His project went over a couple weeks and had way more in charges for a blocked work site than if he had just let us do our job.
Business from Saint Augustine, FL
Answered on Oct 31st, 2018
Chances are, you'll probably have too much or not enough material, or all the wrong sizes or colors. So in order for us to straighten all that out, we'd probably have to charge at least double, and maybe triple. Depends on how screwed up all the materials are.
Honestly it is going to cost you more than if your contractor purchases and installs the items. We do not do this any more as a company as it is more headache than it is worth. We work best using the materials that are best for the project and our electrician and plumber....ect. all work with quality products which they get at a much better price than you would be able to get from a big box store. PLUS the quality in a company such as Home Depot or Lowe's is just not there when it comes to a lot of these items. If you are working with a reputable company and you want them to do excellent work you need to trust that they are not screwing you around and that they are charging what is fair and right. I would suggest that if you are feeling like you need to buy all the materials to keep the cost down that you have simply not met the right contractor yet. Keep looking!
Steve you maximize your profit if you purchase the materials separate from labor you get to mark up labor and materials, and still keep price more competitive. If your sub buys materials, unless he passes them through at cost - unlikely- then the materials will carry a double markup. I think David Taylor thought you were a homeowner not a contractor. I will not do work where home owner buys the material, because the plan is always fraught with errors, materials do not fit applications, and the collateral work such as electrical and plumbing, usually run more than the homeowner was told. The price creep on the job usually makes for an unhappy customer.
I think the biggest difference would be the time and money lost making multiple trips to your supplier. Having everything on hand will improve the workflow, and should increase the overall efficiency of the project. Also, depending on the customer and your agreement with them, you may be able to charge for stored materials and get those off your books right away.
The problem is make sure anything you buy is returnable in case there are changes made and there are usually always changes. The good part of that is you have a chance to inspect the material so if something is missing or damaged it can be taken care of. One more thing is if the job site is not secure make sure you are insured in case of theft or damage.
It depends on the size of the remodel. If it is a smaller (residential) then not that much. Usually the cost of delivery. It is cheaper to have a large load delivered than multiple smaller ones. If it is a larger project (multi family, apartment or commercial space) there can be bulk purchase savings. Sheet rock.. concrete... etc.
Some contractors prefer to purchase the materials for you for 2 reasons... 1. they get it at a discount they do not pass onto you. 2. they may purchase a better quality product for you. 3. some items have many products that are similar to you but not to the installer. They may chose to purchase the one they find easiest to work with.
Other Contractors will complete the job with your materials on hand, but do not expect to save money unless you are in the trade.
Business from Carlsbad, CA
Answered on Oct 31st, 2018
2 minute read. Lifetime of Experience.
I'm not a Builder. I was raised in Construction. Family in every aspect of building. Today, I work with them daily.
Often I see homeowners believing they'll save money by getting the materials themselves. So the question is
How much is my time worth running back and forth to get the correct material for the job I actually want done? Because this absolutely will happen. Stop my day at the day job to go home, load up the incorrect, to go get the correct materials x 7.
Or "We can make your materials work, but it's going to cost ______ to make them work right." Or "We can use your materials, but we can't offer a warranty because the materials aren't made to last." All these things are reality to consider with going against the grain.
My very first Flip in 1996 I learned many things. One of those was that I possessed the skills & knowledge to do the rehab myself. So along the same thought process as the question, I said, "I'm going to do the rehab myself and SAVE money!"
While I was up on the roof, on a hot day, hammering nails, I punched myself in the face with this thought: "WHY AM I UP HERE AND NOT OUT BUYING MORE PROPERTY! THE MONEY THAT I THINK I'M SAVING, I'm actually LOSING, MULTIPLED BY 1000! I should be out buying more property and hire a local roofer, supporting the local economy, to do this job so I can make 1000x what I think I'm "saving"!"
If I owned a construction yard full of the materials needed to complete my job, and I sold to Contractors, and it was near the job site, I'd ask the Contractor if they'd consider using my yard for the materials on the job. I might not only get the job done right, even though the warehouse is new to the contractor, he may find that he's digging the discounts and materials at my yard and we create a long term relationship.
If this isn't the scenario, homeowners might save money on the materials, but it will cost them more than what they think they're saving, in Time alone...someone once said "Time is Money". What needs to be determine is what value they put on theirs.
We seldom will allow a client to purchase their own materials. If they do we make them sign a waiver that they understand that we do not give any warranties on products, they need to have the products onsite before work commences, and it must be complete. They also understand that if items are needed or missing that any time lost will be billed and a premium will be charged for those missing items that we need to purchase. This often brings home to clients the reasons to hire us as well as they understand that we provide quality products and a seamless service backed by our warranty.
Join Your Local
Business Network
Connect & get quality referrals
from Small Business Owners
Answers (1-10)
SO you might save the 10% mark up that is typical. And you may pay more for labor depending on where the material is stored. IF its in the way and has to be moved etc. If your material you buy is sub par the contractor may not use it, or charge you more in labor to make it work. My own take. Is the small amount you might save worth the risk of having the wrong material. Not having enough material. (one run to get material will be a hefty charge from the contractor.) or having too much that you have to return. I had a customer decide to get his own sheet rock because of a good deal from a friend. He actually saved about 20% over my rockers price. However because of where he had them stack it it. It cost him about 15-20% from every sub for the problems working around it. (he refused to move it and wouldn't approve the cost of moving it. ) The biggest cost was time. His project went over a couple weeks and had way more in charges for a blocked work site than if he had just let us do our job.
Chances are, you'll probably have too much or not enough material, or all the wrong sizes or colors. So in order for us to straighten all that out, we'd probably have to charge at least double, and maybe triple. Depends on how screwed up all the materials are.
Hope this helps!
Honestly it is going to cost you more than if your contractor purchases and installs the items. We do not do this any more as a company as it is more headache than it is worth. We work best using the materials that are best for the project and our electrician and plumber....ect. all work with quality products which they get at a much better price than you would be able to get from a big box store. PLUS the quality in a company such as Home Depot or Lowe's is just not there when it comes to a lot of these items. If you are working with a reputable company and you want them to do excellent work you need to trust that they are not screwing you around and that they are charging what is fair and right. I would suggest that if you are feeling like you need to buy all the materials to keep the cost down that you have simply not met the right contractor yet. Keep looking!
Steve you maximize your profit if you purchase the materials separate from labor you get to mark up labor and materials, and still keep price more competitive. If your sub buys materials, unless he passes them through at cost - unlikely- then the materials will carry a double markup. I think David Taylor thought you were a homeowner not a contractor. I will not do work where home owner buys the material, because the plan is always fraught with errors, materials do not fit applications, and the collateral work such as electrical and plumbing, usually run more than the homeowner was told. The price creep on the job usually makes for an unhappy customer.
I think the biggest difference would be the time and money lost making multiple trips to your supplier. Having everything on hand will improve the workflow, and should increase the overall efficiency of the project. Also, depending on the customer and your agreement with them, you may be able to charge for stored materials and get those off your books right away.
The problem is make sure anything you buy is returnable in case there are changes made and there are usually always changes. The good part of that is you have a chance to inspect the material so if something is missing or damaged it can be taken care of. One more thing is if the job site is not secure make sure you are insured in case of theft or damage.
It depends on the size of the remodel. If it is a smaller (residential) then not that much. Usually the cost of delivery. It is cheaper to have a large load delivered than multiple smaller ones. If it is a larger project (multi family, apartment or commercial space) there can be bulk purchase savings. Sheet rock.. concrete... etc.
Some contractors prefer to purchase the materials for you for 2 reasons... 1. they get it at a discount they do not pass onto you. 2. they may purchase a better quality product for you. 3. some items have many products that are similar to you but not to the installer. They may chose to purchase the one they find easiest to work with.
Other Contractors will complete the job with your materials on hand, but do not expect to save money unless you are in the trade.
2 minute read. Lifetime of Experience.
I'm not a Builder. I was raised in Construction. Family in every aspect of building. Today, I work with them daily.
Often I see homeowners believing they'll save money by getting the materials themselves. So the question is
How much is my time worth running back and forth to get the correct material for the job I actually want done? Because this absolutely will happen. Stop my day at the day job to go home, load up the incorrect, to go get the correct materials x 7.
Or "We can make your materials work, but it's going to cost ______ to make them work right." Or "We can use your materials, but we can't offer a warranty because the materials aren't made to last." All these things are reality to consider with going against the grain.
My very first Flip in 1996 I learned many things. One of those was that I possessed the skills & knowledge to do the rehab myself. So along the same thought process as the question, I said, "I'm going to do the rehab myself and SAVE money!"
While I was up on the roof, on a hot day, hammering nails, I punched myself in the face with this thought: "WHY AM I UP HERE AND NOT OUT BUYING MORE PROPERTY! THE MONEY THAT I THINK I'M SAVING, I'm actually LOSING, MULTIPLED BY 1000! I should be out buying more property and hire a local roofer, supporting the local economy, to do this job so I can make 1000x what I think I'm "saving"!"
If I owned a construction yard full of the materials needed to complete my job, and I sold to Contractors, and it was near the job site, I'd ask the Contractor if they'd consider using my yard for the materials on the job. I might not only get the job done right, even though the warehouse is new to the contractor, he may find that he's digging the discounts and materials at my yard and we create a long term relationship.
If this isn't the scenario, homeowners might save money on the materials, but it will cost them more than what they think they're saving, in Time alone...someone once said "Time is Money". What needs to be determine is what value they put on theirs.
Here's wishing you continued great success
We seldom will allow a client to purchase their own materials. If they do we make them sign a waiver that they understand that we do not give any warranties on products, they need to have the products onsite before work commences, and it must be complete. They also understand that if items are needed or missing that any time lost will be billed and a premium will be charged for those missing items that we need to purchase. This often brings home to clients the reasons to hire us as well as they understand that we provide quality products and a seamless service backed by our warranty.