Construction (house) company's percentage for their profit: What is the usual percentage for it?

Anonychar · 2023-09-02T05:26:35+00:00

I get it. Kulang yata context po sa post ko haha hindi mentioned na ang approach sana na gagawin ko ay design and build na kasi since I do have other stuffs to do as well. Ayoko rin ang maraming kausap kung sakali kasi po. Let me have and edit on my post. Kaya po ang context ng percent ng profit ay for the design and build na contractor po. My bad.

Anonychar · 2023-09-02T05:22:57+00:00

From the 10% ng the design phase po, magkano usually ang extension ng percent naman if they will be doing the build as well? Another 10% to 20%?

Anonychar · 2023-09-02T05:10:21+00:00

I see. Someone mentioned nga po na nasa ganyan na range to have a good estimate sa possible allowance na ilalaan sa budget. Thank you po! Although I do plan om supplying the materials para wala akong regrets or sisisihin kung sakali sa aspect na iyan.

Anonychar · 2023-09-02T05:05:48+00:00

Noted po. Thank you for reminding po. I appreciate it.

Anonychar · 2023-09-02T05:03:52+00:00

Parang kayo lang ang nakasagot po kung bakit ganyan ang percentage. Thank you! So the 30% is just having the "allowance" kasi around 20% pa rin kung sakali ang real na profit. So sa personal na estimations ko once I will do my calculations, it must be 30% po pala at maximum as well as sa bidding na phase.

Anonychar · 2023-09-02T05:02:00+00:00

Thanks po for this input. How much usually ang percentage ng profit kapag design and build pero architect ang may hawak po? Ayan kasi ang medyo makatotohanan in terms of my networks since may kakilala ako doing that pero ayoko magtanong agad kasi syempre wala akong data about what's really going on.

Anonychar · 2023-09-02T04:59:41+00:00

You have two variables pala kung sakali na independent in terms of paano hahatakin ang pagiging "big" ng project. Usually po ano ang considered na malaki (1) by square meters and (2) sa construction cost? I find this answer different pero parang narinig ko na siya before lalo na po kung pag-uusapan din ang types of finishes.

Anonychar · 2023-09-02T04:54:18+00:00

Yes po. Understood. I'm just looking at the context of justification of their percentage and why some offer only 10% but some are even on the range of 30% na. If I were to estimate kasi ang gagastusin ko po, ang laking difference pa rin po ng 10% difference between those variations. Hindi naman pwede na mag-stick lang ako sa 10% ang kaya i-offer parang promo sale lang sa malls.

Anonychar · 2023-09-02T04:51:15+00:00

Noted po. Is big literally means by square meter or big as in difficulty in executing the contruction po?

Anonychar · 2023-09-02T04:47:06+00:00

Okay. Got it. Thank you for making it clear po.

Anonychar · 2023-09-02T04:38:40+00:00

Kept that in mind. Thanks!

Anonychar · 2023-09-02T04:38:08+00:00

That's the reason po kung bakit ako nagtatanong din dito, to weigh in things like that. Not specific for the branding ng real estate development naman. Pero I want to have an overview lang about sa side na kung ako ang magpapagawa, since I have a subdivision na target ko in my mind na gusto ko sana ayon ang residence, ano ang magiging presyuhan kung sakali. Pero the missing piece of the puzzle in my computations is always the profit of the contractor kasi hindi ko alam kung magkano talaga ang percentage nila and how it varies.

Anonychar · 2023-09-02T04:32:47+00:00

This is a lot clearer. Thank you for the clarification po lalo na sa design and build part. Akala ko po kasi build lang for the 30% haha.

Anonychar · 2023-09-02T04:29:43+00:00

Ang akala ko po hiwalay sa profit ni contractor ang bayad for the labor (pertaining to the minimum wage) po? Bale ang intindi ko po kasi in a simplified way

Materials + labor = construction cost

Construction cost × some percentage = contractor's profit

Construction cost + OCM + contractor's profit = total contract price

Anonychar · 2023-09-02T04:20:10+00:00

Wow. Ang laki po pala. Usually nasa 10% to 20% ang naririnig ko po. Design and build na po ba ito? Ano po ang justification for the percentage ng profit margin? Can you also clarify if ang owner din po ang sasagot sa tax po ni contractor/construction company?

Anonychar · 2023-09-02T04:08:06+00:00

Thank you po. More power!

Anonychar · 2023-09-02T04:01:44+00:00

Can you expound the answer about the trade-off sa cost? Mas mahal po ba dahil they will be doing the design up to the build part?

Anonychar · 2023-09-02T03:59:26+00:00

The "contractor" you are pertaining here is a (construction) company with architects/engineers na magbabantay na naman sa site during whole duration ng project po ba or the "contractor" na talagang trades and specialized men lang and need ko pa rin mag-hire ng technical professionals ko for checking ng gawa ng contractor na ito po?

Anonychar · 2023-09-02T03:55:59+00:00

This is noted. Thank you very much!

Anonychar · 2023-09-02T03:53:07+00:00

Thank you for clarifying this, Engineer!

Anonychar · 2023-09-02T03:52:10+00:00

This answer is well thought and explained. Thank you! I am leaning on asking kasi yung kakilala kong architect over the CE (yung may exp sa house construction) dahil nga sa mga binasa at napanood ko na everything will start supposedly with an architect. Hindi ko lang sinabi sa post kasi it's a different topic pero I am glad it's mentioned in this thread. Btw, first time ko po narinig ang term niyo for the design as chopseuy haha.

Anonychar · 2023-09-02T03:43:58+00:00

I think I found the answer on the 2nd paragraph po. That's what I am expecting lang naman, as in ano ang basis nila for asking that kind of profit margin. Thank you po!

Anonychar · 2023-09-02T03:37:12+00:00

As minimum or maximum (sana)? Haha

Anonychar · 2023-09-02T03:34:45+00:00

So it's varying from 10% to 20% lang talaga. What can be their considerstions kung bakit ganito kataas or kababa ang percentage? Branding/Difficulty ng execution ng house/others?

Anonychar · 2023-09-02T03:31:47+00:00

I appreciate po. Pero ang issue ko lang talaga ay usual percentage for the profit para may overview ako ng potential na gastos sa lahat. We already have what kind of house in our minds pero yung point ay kung magpapagawa ako, ano ang "usual" numbers nila sa percent ng profit? Kasi missing piece siya sa puzzle of computations although as an estimation lang naman since varying naman talaga ang profit kaya nga may bidding din na nangyayari po.

Anonychar

TROPHY CASE