I have a cost plus contract in which we have charged a flat fee to manage the work being done plus the actual cost of work.
Now, part of our job will also be to get some of the work done ourselves. with me and my crew.
My question is: for the portion of the work that we perform ourselves, do we invoice the owner for the hourly rate of each worker? or should we invoice for the lump sum of the work being done (ei drywall and plaster). as a subcontractor would?
Just need to clarify this, as it is our first cost plus contract.
In those contract arrangements (cost plus) we make it very clear in the contract how "own work" is going to be dealt with. The easiest way is to identify in the contract the regular hourly rates for any potential work that our guys could get involved with on the job. That way all that you are having to track and report on are the hours spent. The hourly rates should already include your OH&P so you should not be applying an additional markup to your labour rates.
Invoice as a subcontractor for all work done by you and your crew. If you don't do it you would have to manage someone else to do the work under your flat rate for managing. If you are overseeing the entire project it may be hard to classify every little project you get your guys to do. Generalization usually works best IE carpentry work supplied by "your company name". Drywall can be considered carpentry work
Hope this helps.
Search the TrustedPros directory and discover the best contractors in your area.Find your home service pro