Any and all help is appreciated!
I'm in the beginning stages of a home renovation project and just got preliminary pricing from a builder in a design/build firm. I'm a little confused about the fee structure and was hoping someone might be able to let me know if the pricing is reasonable.
First, a description of the project.
My house is old, and has been built onto twice since it was built in the 1920s. It is currently 3200 Sq Ft and is one story. It also has an excellent quality fully gabled screen porch and a wooden deck. The renovation is to add around 900 sq ft of living space, and to renovate another 1500 sq ft of existing living space. We are also adding an unattached 2 car garage.
The renovation will add a den, a utility room (washer dryer, cabinets, counters), a wine cellar (2000 bottles), a half bathroom. The existing living space that is being redone is the kitchen and a living room. The wooden deck is being replaced with a larger stone deck using bluestone and we are building an outdoor kitchen with concrete counters, a small sink, big gas grill and wood burning oven.
We paid a flat fee up front for all the preliminary design work.
The preliminary pricing delivered includes the cost for all the material and labor as expected. Then comes the builders fee of 15.5% and then on top of all of that is the architecture fee of 10%.
We are using a lot of very high quality and expensive items, which means we are essentially paying a premium of over 25% on any product we buy. This is substantial when you consider the appliances (refridge, range, ice maker, grill, wood oven etc.). Is there a way to take the big ticket items out of the cost plus contract?
Also, one of the biggest expenses in the fee list is "Building Management Fee". Why isn't that covered in the 15.5 points the builder is charging? How can he charge points on top of an hourly wage he is building into the contract?
All in all, we are using top quality materials and I expect to pay a premium for that, but what is the maximum cost per square foot we should expect?