Labour Cost

8/29/2017 at 11:32:55 PM

That is very unusual, but a contract is an agreement between the two parties.

If you agreed to his price, whatever he does with his money is his business.

Now, if he is asking you to pay for his payroll taxes above that, it's not right.

8/29/2017 at 11:56:19 PM

Ontario has HST 13%

The contractor will bill for labour and then add the tax. The contractor then remittances the taxes to the government.

8/30/2017 at 12:05:35 AM

So why would I be told 29% labour tax?

8/30/2017 at 7:16:54 AM

If you Agreed on a certain cost for the labor.

Yes , in Ontario you must also pay 13% on top of that cost. If your Contractor gave you a

written estimated cost for the work to be done he had to put either tax included or plus tax in his estimate. If he failed to do that than you only have to pay what the estimated cost is on paper and no more and any extras you may have agreed to.

8/30/2017 at 7:30:59 AM

Not really disputing the cost, just really new to all this and wanted 2nd or 3rd hand information.

I appreciate the replies.

Also just for information what is typically the percentage of profit a company takes when building a new home?

Thanks again guys!

8/30/2017 at 8:15:14 AM

Rob,

Every company is different on their mark-up depending on overhead costs.

I am not sure why it is 29% tax unless they are wanting you to pay insurance and workers comp as well.

It is best to re-read your contract with your contractor and have everything clarified. It is a tough business and the amount of work that goes into building new homes is quite excessive.

8/30/2017 at 9:33:41 PM

The labour cost should be explicit. If it is so much per hour, that should be the total cost to you so ... if it is $30/HOUR the cost should be $30 PLUS what might be over and above. If there is mileage or taxes or whatever, the total cost to you should be presented ... with a breakdown of all charges.