Construction companies use one of two pricing methods, or both:
'Fixed Bid': typically used when variables in the scope of work are known.
'Cost Plus': typically used when variables in the scope of work are unknown.
Blackstone uses written 'Fixed Bid' quotes pricing for pre-defined and pre-quantified scope of work for physical construction work.
Blackstone uses 'Cost Plus' (aka time & materials PLUS mark up) pricing for Change Orders and non-physical construction work.
Change Orders are priced based on the cost of the sub-trades hourly rate and the cost of materials, "plus" a 20% mark up is then added to that subtotal. Change Orders Requests are submitted by the Client to Blackstone, and are subject to Blackstone's approval. While it goes without saying, it can be forgotten at the project's completion - that Change Orders (additional work beyond the base contract) extend the original completion date and extend the original base contract's budget, proportionately by the amount of Change Orders requested.
Non-physical construction work performed internally ("in-house" staff member) by Blackstone is priced at the rate of $120/hour.
Any client authorized purchases incurred by Blackstone for the project shall be billed to the client with a 20% mark up.
Purchases include time and materials.
Examples of purchases of time: designers, drafters, architects, structural engineers, etc..
Examples of purchases of materials: lab reports (asbestos samples), inspections (sewer line video), permits, etc..
Examples of non-physical construction work performed by a construction company internally ("in-house" staff member) and/or externally (third party professionals):
- defining scope of work
- structural engineer
- researching and creating a materials specifications list
- sourcing materials and specialty sub-trades
- case management
Prospective Client (Owner) agrees that requesting additional consulting after the complimentary consultation hour has lapsed contracts (commissions) Blackstone at a rate of $120/hour. Additionally, any client authorized purchases incurred by Blackstone for the project shall be billed to the client with a 20% mark up.
Balance due upon generation of invoice.
All payments to include 5% GST.
payment not paid in full when due shall bear interest at 2% per month, 26.8%
per annum, and this rate will apply to both pre and post judgement balances.
agrees not to have any other development work contracted until all work as
described in this specification is complete and all related invoices have
been paid in full.