What is a typical contractor discount?
Retail stores usually give special discounts to contractors. So, when we make a purchase, some stores give us between 15% and 20% off the total cost. Once we add in the cost of extra labor, the price usually evens out. In fact, they’re likely to pay the same price or more than we’d charge them.
Are Quantity Surveyors entitled to reduce the hours included on a signed Daywork sheet if they consider them unreasonable or excessive?
If the parties have agreed that payment is to be made on a daywork basis, the quantity surveyor has no right to reduce the hours and other resources on the sheets.
What is the relationship between the main contractor and subcontractor?
For main contractors, good relationships with their subcontractors reduce the risk of poor quality work as well as cost and time overruns. Whereas for subcontractors the benefits are preferential status when bidding for work as well as support and guidance during the construction process.
What is the difference between a main contractor and a subcontractor?
The contractor is responsible to the client for the building job including the part performed by the subcontractor. Subcontractors might work on task-based contracts with no fixed date, long-term arrangements which can be discontinued at any time, or fixed-term contracts. See subcontractors and CIS.
How are main contractor discounts calculated?
A discount (typically, 2.5%) is deducted if the main contractor pays promptly, with the subcontractor able to recover the discount by adding an amount to the contract sum. The discount is applied to the value of works undertaken by the subcontractor and deducted from any application for payment.
How much less is contractor pricing?
There is certainly no standard, but many dealers give 5%-10% discounts to the lowest “C-rank” contractor accounts if they do more than $25,000 worth of business per year. A typical “A-rank” customer does more than $100,000 in sales and earns 10%-15%. Prompt payment is required to qualify for tiered pricing.
When should Daywork rates be used?
It is generally used when work cannot be valued in the normal way. For example, daywork might be instructed when there are no comparative rates in a bill of quantities and a pro-rata method of pricing cannot be used.
What is day work sheet?
The basic principle of daywork is that the work done is recorded on a daywork sheet together with the labour material and plant resources utilised to carry out the work. Ordinarily daywork will be used to value work carried out as a variation where that work cannot properly be valued by measurement.
Is it better to have subcontractors or not?
When your business needs some extra hands on a large project, hiring subcontractors is often much more cost effective than bringing on new, full-time employees. Subcontractors do not get benefits, office space or equipment. Hiring contractors also relieves you of having to pay employee taxes and a full-time salary.
What is the average salary of a contractor?
Average general contractor salary According to TradesmanCE.com, general contractors with an established business at the higher end of the payscale can expect an average base salary of $70,000 to $95,000 per year. Broken down further, this translates to an hourly wage of roughly $50, or a daily rate of $500.
What percentage should a contractor pay a subcontractor?
Calculating a good rate for a subcontractor should start with the basics: labor plus materials. Profit is typically between three and five percent of the project total. But overhead is a topic that many contractors find confusing.
Does MCD apply to variations?
The Main Contractors Discount (MCD) is usually 1/39th or 2.5% discount on the tender amount for payment within terms, however the amount can vary.
What does the term main contractor’s discount mean?
The term ‘ main contractor’s discount ‘ (MCD) refers to a clause that can be included in building subcontracts to encourage main contractors to pay their subcontractors within the period of time specified in the contract .
Can a contractor take a discount for fair payment?
The fair payment rules do not allow an “incentive payment” to reward a contractor for paying his supply chain promptly. That means that taking a discount for payment “on time” is not allowed. It will be disapproved by the Project Manager under clause 26.3.
Do you get a main contractors discount for meterage?
main contractors discount is what certain companies think they havea right to charge. if they are telling u the meterage they shouldnt charge it. we work for some people that charge it but we give our own price, so we make the price worth while.
Why was there a difference in contract price?
The difference broadly reflected the 2.5% main contractor’s discount, which had been in dispute between the parties since the negotiations in 2004. While £37,500 was not a substantial amount in the context of the contract price, it could not be considered “ de minimis or otherwise non-essential”.