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Scope of Work Under Square Foot Rate Basis

10/23/2011 10:04 AM

Builders often quote rate square foot basis,for residential house construction.

Are there norms to know which items are normally included in the scope of work under square foot rate basis (in the absence of agreed schedule of items)?

For example,after construction,builder claims that construction of overhead water tank is an extra item,not included under square foot rate.

Advice from CR4 forum can help to settle such disputes on extra claims.

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#1

Re: Scope of work under square foot rate basis

10/23/2011 10:35 AM

In the US, a builder typically clearly spells out what is included in the contract, and what is not..................along with prices for extras.

Are there norms to know which items are normally included in the scope of work under square foot rate basis (in the absence of agreed schedule of items)?

I would never hire a builder for anything, without an agreed upon schedule, scope of work, and price.

These sites may help:

http://www.byoh.com/costestimatingexplained.htm

http://www.designevolutions.com/articles/homeplans_sqft_cost.html

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#2

Re: Scope of Work Under Square Foot Rate Basis

10/24/2011 12:26 AM

That sounds out of normal scope to me. What sort of tank was it? Masonry, PVC, stainless steel... Both you and your builder were negligent for not agreeing to the deliverables. What you both now have is a heap of karma to wade through. Seems like an odd way to manage a job.

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#3

Re: Scope of Work Under Square Foot Rate Basis

10/24/2011 5:58 AM

In my opinion ,builder is not doing right thing ,charging extra for over head water tank,as water is basic requirement and when one purchases house it is understood that such basic tings are included.In the same way ,some one may charge for window also -which provides you light and air to breath.These things can not be called "extra".Even (really approachable !) approach road also should treated as inclusive of per sq ft cost.

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#4
In reply to #3

Re: Scope of Work Under Square Foot Rate Basis

10/24/2011 10:11 AM

Only if it is spelled out in the contract and signed by both parties.

I think you are talking about what we call "milestones", which is to say, the builder gets paid an agreed upon amount when he meets each milestone. A good builder will estimate each milestone to be finished towards the end of the month so that he can pay his employees. Such contracts would contain check lists which must substantially done before the builder gets the money for that milestone.

The only thing which can be taken for granted is that the builder will build to accomodate your local building code. And even then...the code is just a minimum, and you may STILL have to write into your contract that the builder must leave the trenches open, or the walls uncovered until the inspector comes in to approve each stage. Or to leave access for the other trades. Otherwise you get dry wall people who finish up their job and have moved down the road when the electricians show up and discover all the studs are covered. (I have been on several jobs where I had to dig up all the trench around the outside because we had backfilled before the inspector saw the foundation.)

You may have to modify those milestones in your contract from time to time...providing all parties agree. You can even add penalty clauses or specify grounds to terminate the contract early if the builder does not meet the majority of these milestones.

There are firms who specialize in creating these contracts, and like any legal team, they are not cheap. but then, neither is a parachute...until you need it!

So why do I know all this? Well, I no longer do construction work because I found that up to ten percent of my time, when I should have been working, was sitting in court trying to get my money. I found that a really good contract helped a lot.

Perhaps the best clause to insert? "owner reserves the right to be on sight at any or all times at his own risk to supervise production, and may demand that standard proceedures regarding safety and adherance to local building codes be followed, and builder agrees to act upon those demands." You would not think such a clause would be needed would you? Well, some people think so. And some folks think that codes are only the beginning. Codes are only a minimum requirement, they are not the "standard".

Good fences make good neighbours, and good contracts make good business. If you don't do the contracts right, you will regret it.

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#5

Re: Scope of Work Under Square Foot Rate Basis

10/24/2011 10:42 AM

The square foot rate is for the builders 'standard construction', which should be described in the quote.

If you then wish the hot water service to be in the roof (not on the slab), it changes the structure, (and plumbing layout) which changes the cost.

It pays to read the quotes and sort these things out in advance.

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#6

Re: Scope of Work Under Square Foot Rate Basis

10/24/2011 11:30 AM

A conststruction adage by my friend Prof. Francis Hartman

" The builder quotes the project based on 3 terms: Scope; Cost; Schedule.

The client should choose any two for the completion of the project."

Vince

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#8
In reply to #6

Re: Scope of Work Under Square Foot Rate Basis

10/24/2011 2:18 PM

Vince, that is a pretty good guideline.

Another construction guideline based on three:

1) Project will take three times as long as you thought.
2) Project will cost three times as much as you thought.
3) Project will be 1/3 as much fun as you thought.

The 'greener' the client, the truer this is.

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#7

Re: Scope of Work Under Square Foot Rate Basis

10/24/2011 2:16 PM

nvmani,

In your post, you do not state whether this square foot cost was for new construction or additions/remodeling. This could possibly effect both the answer to your question and the outcome of your predictament. However, 34point5's comment does raise another valid point. In the Builder's original square foot cost estimate, were there any provisions for water tanks and/or plumbing service ? If so, you may just be responsible for the difference in cost of the additional structural members to support the tank on the roof plus the additional lineal feet of piping. Good Luck !

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#9

Re: Scope of Work Under Square Foot Rate Basis

10/31/2011 8:48 PM

In the US, as others have stated, you get good construction, fast construction, and cheap priced construction...you get to pick two. Building codes and standards keep a builder from leaving out anything that is needed for the house to function properly. Function means a different thing in Florida from what it means in Maine. Get the details spelled out for the geography in which you are building.

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