Builder adding 10% to extras cost - normal or fast one..?

[The Pool Boy]

Hi

Is it normal for a builder to charge 10% of the cost of extras as a management charge to handle them.

We agreed various extras (windows, doors, insulation etc) that came to about €5,500 and builder has added 10% management fee to his final bill for these extras. I don't see any such clause in the contract and wondering if this is an accepted industry practice or is he pulling a fast one.

 

[mathepac]

Unless I'm reading you wrong he is adding a % uplift on material costs which not unusual.

 

[The Pool Boy]

Thanks mathpac for the quick reply.

When the building work was being done, we agreed some changes and agreed the additional price.

For example, €2k extra on windows, €550 for different doors etc

Now he's presented the bill with these items on it at the agreed price, with an additional item at the bottom of a management charge of 10%. The 10% was never mentioned when we agreed the price and I don't see it in the contract. The prices were written down and agreed, the 10% wasn't.

 

[mathepac]

Sorry. In that case, all you can do is query it with him

 

[Bronte]

I would imagine the cost is for his extra time in sourcing , purchasing, delivering those new items.

 

[cremeegg]

Under the standard contract, the builder is entitled to charge for his work in dealing with the extras like this, and if your contract is silent on the matter then I think the standard contract is a reasonable place to start.

There are two matters he is entitled to charge for, his additional work, and a profit element.

If he agreed an additional price that should cover his costs, and in fairness he should have explained at that stage his entitlement to add a profit element. If you are not in the trade, how would you know.

The traditional profit element is 5% of the total not 10%. Its calculated like this cost €2,550 divided by 19 multiplied by 20 gives €2,684 so his profit is €134 on the total €2,684.

I would push back fairly strongly, if he wanted a profit element he should have made that clear up front, 10% on top is an unreasonable profit element.