Building costs with rising labor costs

Anything to do with prices. Raw material prices or prices for finished material (or labor such as well drilling). Project prices (how much will it cost??), etc.

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Re: Building costs with rising labor costs

Postby thailazer » Tue Jan 29, 2013 2:09 pm

Shastadad wrote:
p-buck..... One way to get around worrying about rising costs is to get the builder to give you an all-up labor cost before you begin.


Which also means that if your contractor disapears on you, you are also out the "labor" money that most demand up front when you sign the contract

My experience was that once the contractor got the labor money (which is really his profit in advance) and he reached a break even point, where it was going to cost him to finish the job, it was cheaper for him to just walk away

They are not afraid of consequences because no lawyer will take a case unless you pay them up front, thereby forcing you to throw away good money after bad

The other disadvantage is that when the contractor controls the labor costs he will obtain subs on their schedules, not necessarily based upon the projects needs, since they will work cheaper when they need the money. When subs disapper then the cost of getting someone else to finish a started project can rise substantially ( I say this after 4 plumbers, 5 electricians, and 6 tilers, for my house build)

Just anticipate that the project is going to cost you at least 20% more than estimated at the low end, and 50% more at the high end

Rather than clipping my post, why not include the whole thing where I stated we paid for progress. There was no payment until a month's work was done. There are indeed a lot of runners in Thailand, but if you do your homework and get a good crew, you reduce the risk of that. There is no reason to have cost over runs if you manage it right AND get a good grew. (Yeah, I know... Those are unlikely in Thailand.) Our total cost over run for labor was 700 baht which was a day's labor for rain gutters which were not on the plan.
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Re: Building costs with rising labor costs

Postby maximus » Wed Jan 30, 2013 7:30 am

thailazer wrote: we paid for progress. There was no payment until a month's work was done. .


slam dunk :!:

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Re: Building costs with rising labor costs

Postby BKKBILL » Wed Jan 30, 2013 9:18 am

I agree with thailazer if you have a labour only price there is no reason to pay up front, a normal quote for a complete build paying moneys up front would be to help your contractor buy materials.

On our build we had a fixed quote for labour only and that is what we paid, there were extras but that was because things were added or changed by us with the additional cost agreed on before that work commenced. We did get three quotes talked to people and checked out our contractors work before committing.

Also saying a projects labour will cost 20 to 50% more just shows pricing errors were made before the job was even begun and would have been caught with having three prices.
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Re: Building costs with rising labor costs

Postby Shastadad » Thu Jan 31, 2013 7:46 am

thailazer wrote:
Shastadad wrote:
p-buck..... One way to get around worrying about rising costs is to get the builder to give you an all-up labor cost before you begin.


Which also means that if your contractor disapears on you, you are also out the "labor" money that most demand up front when you sign the contract

My experience was that once the contractor got the labor money (which is really his profit in advance) and he reached a break even point, where it was going to cost him to finish the job, it was cheaper for him to just walk away

They are not afraid of consequences because no lawyer will take a case unless you pay them up front, thereby forcing you to throw away good money after bad

The other disadvantage is that when the contractor controls the labor costs he will obtain subs on their schedules, not necessarily based upon the projects needs, since they will work cheaper when they need the money. When subs disapper then the cost of getting someone else to finish a started project can rise substantially ( I say this after 4 plumbers, 5 electricians, and 6 tilers, for my house build)

Just anticipate that the project is going to cost you at least 20% more than estimated at the low end, and 50% more at the high end


Rather than clipping my post, why not include the whole thing where I stated we paid for progress. There was no payment until a month's work was done. There are indeed a lot of runners in Thailand, but if you do your homework and get a good crew, you reduce the risk of that. There is no reason to have cost over runs if you manage it right AND get a good grew. (Yeah, I know... Those are unlikely in Thailand.) Our total cost over run for labor was 700 baht which was a day's labor for rain gutters which were not on the plan.


Did you miss the part where I stated My experience , and no, I didn't include the part where you paid for progress because that was not my experience. The purpose of this forum is to share our experiences, not to just blindly agree with what others post
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Re: Building costs with rising labor costs

Postby maximus » Thu Jan 31, 2013 3:24 pm

Shastadad wrote: The purpose of this forum is to share our experiences,


touche :D

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