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Contractual/Deposit Questions

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Posted by: from Calgary
1/13/2014 at 6:59:11 PM

Hi.

For the first time I am handling the design of a project, (subcontracting). Here is my confusion .. how do I handle that from a deposit/contract point of view?

My Prepaid Contractors License approved contract does not account for design, and for the contract to be valid pricing must be pretty accurate.

I require sending it to design even to determine square footage and begin to understand the costs so I can quote it.

I was thinking a separate design contract, and maybe a construction deposit?

What is the best method for handling this?

Thanks.

REPLIES (1)
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Mat in Mississauga
Date/Time1/13/2014 at 9:18:26 PM

This is how I handle it. I am GC in Toronto.

Option A: IF ITS A RENO. I embed it in my estimate that way i can markup for over seeing the drawing and to make sure all the request by the client are in the drawing. I charge deposit for only my work. And, i collect the full amount for the Architect. This way the Architect does not have to know what the final estimate but this is all agreed between you and the Architect.

- This is billed along with my estimate to the client but i collect 100% of Architects fees along with the deposit.

Option 2: IF ITS A RENO. I have it separate. I do get involved and ask to architect to embed my time for running around. A minimal cost. this way my time is justified. I usually go to the site with the Architect and assist him in collecting measurements and specs. We review the feasibility of the project as per the client request.

- This is billed by the Architect directly to the Client.

Option 3: NEW PROJECT. i introduce the Architect to the client. Together they discuss all the specs and upon approval by the client the drawing comes to us for a quote. This way we can get a clear ballpark figure of the project. No guesses.

- The Architect bills directly to the client. GC avoids the hassle of collecting.

Goodluck to you. Dont get much stressed about it. Its simple. Remember your time has to billed for running around. Otherwise it does not make sense putting so much of your time beyond your estimated cost.

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