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Old 11-05-2011, 09:39 PM   #1
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Need HELP Pricing PM for New Home Const


Hi folks. I just found this forum, and it seems very active and chalk full of interesting talented people. I'm here to seek some advice on what PM rate to charge for a new house. I'm an ex-builder/framing contractor who has been invited to PM a new home construction for a client. I've been out of the industry for about 12 years, and i'm not up to speed with current rates. Prior to my retirement from building, i have many years of residential building experience as a framing contractor and as builder, so i'm not new, just rusty.

The project is about $500,000 in hard cost, and the building is not complex, just an ordinary one story duplex with a full bsmt and two detached garages. I'm wondering what is the consensus on current PM rates. My buddy is currently building, and he has a group of good trades. We are teaming up on the job. He is telling me the market is 8% to 10% and higher. I'm more familiar with 5% to 7% range. The basis for the contract is that the property owner will write the checks and we manage the job. This job is in Ontario, where the economy is still very healthy and trades are busy in the neighbourhood.

Another area where advise is welcome is the progress draw schedule on the fee itself. I am thinking first draw after foundation, second draw after lock-up, and 2 more after that. Any pointers would be greatly appreciated.

All the best,
James

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Old 11-05-2011, 09:57 PM   #2
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Need HELP Pricing PM for New Home Const


If "your buddy" is currently building, why do you need rates from the internet?

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Old 11-05-2011, 10:16 PM   #3
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Need HELP Pricing PM for New Home Const


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Originally Posted by Ron6519 View Post
If "your buddy" is currently building, why do you need rates from the internet?
He's a builder for himself, different than PM'ing a contract as a service.

What do you have against the Internet? This a forum, where experienced qualified people with commonality, spanning great geography, can share knowledge. My feeling is 10% is high for some pretty ordinary residential const and i'm seeking a consensus among a peer group. Although I guess i could call up two or three of the local competitors, and ask them what they are charging/bidding...
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Old 11-05-2011, 10:25 PM   #4
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Need HELP Pricing PM for New Home Const


Quote:
Originally Posted by James58 View Post
He's a builder for himself, different than PM'ing a contract as a service.

What do you have against the Internet? This a forum, where experienced qualified people with commonality, spanning great geography, can share knowledge. My feeling is 10% is high for some pretty ordinary residential const and i'm seeking a consensus among a peer group. Although I guess i could call up two or three of the local competitors, and ask them what they are charging/bidding...
Try the Contractors forum. This is the wrong forum for the question
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Old 11-05-2011, 10:54 PM   #5
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Need HELP Pricing PM for New Home Const


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Originally Posted by Ron6519 View Post
Try the Contractors forum. This is the wrong forum for the question
I'll take your advice on that, although i don't see a link.

Its surprising that a 'Building & Construction' forum is wrong place to discuss construction management.
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Old 11-05-2011, 10:58 PM   #6
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Need HELP Pricing PM for New Home Const


Quote:
Originally Posted by James58 View Post
He's a builder for himself, different than PM'ing a contract as a service.

What do you have against the Internet? This a forum, where experienced qualified people with commonality, spanning great geography, can share knowledge. My feeling is 10% is high for some pretty ordinary residential const and i'm seeking a consensus among a peer group. Although I guess i could call up two or three of the local competitors, and ask them what they are charging/bidding...
This is a DIY'er forum. You cannot get the information you want here. Nor can you get that kind of information anywhere else. There is no such thing as a PM rate right now. Same as asking for pricing or what to charge. You have to find out what YOU need to charge in your area.
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Old 11-05-2011, 11:02 PM   #7
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Need HELP Pricing PM for New Home Const


Quote:
Originally Posted by James58 View Post
I'll take your advice on that, although i don't see a link.

Its surprising that a 'Building & Construction' forum is wrong place to discuss construction management.
Scroll down to the very bottom of the page.
There are a lot of wrong places for many things. This is just one.
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Old 11-05-2011, 11:21 PM   #8
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Need HELP Pricing PM for New Home Const


Quote:
Originally Posted by Joe Carola View Post
This is a DIY'er forum. You cannot get the information you want here. Nor can you get that kind of information anywhere else. There is no such thing as a PM rate right now. Same as asking for pricing or what to charge. You have to find out what YOU need to charge in your area.
You're a framing contractor. There's a competitive market rate for framing in your area, its probably about the same as my area, which currently about $5.50 psf. Its the same with GC rates, they are also competitive, but there is a broad spectrum, even more so than framing.

Anyway, thanks for your advice. This is probably not the best forum for the question but someone in the industry may answer and it could be of value to others looking. Its a diverse crowd.

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