Builders hourly rates

[jimO]

one of the best builders i deal with is short of work at the moment, so being quiet isnt always a sign of how good they are, is is waiting on plans to come through for a block of student flats and the architect is mucking about, the builder has turned away lots of work as he was expecting to be on to the flats by now

[DaveW]

one of the best builders i deal with is short of work at the moment, so being quiet isnt always a sign of how good they are, is is waiting on plans to come through for a block of student flats and the architect is mucking about, the builder has turned away lots of work as he was expecting to be on to the flats by now

Totally agree with you there, a lot of people fall for that trap.
Being busy does not equate to how good they are.

[Sandie]

Thank you Donna and others who have replied to my query about builders rates. I telephoned Master Builders and after that decided a solo builder should not be charging more than $60 - $65. I also found that the builder who charges $80 per hour plus GST and said that he was a qualified builder is not registered. I have now contacted a builder who has been recommended, is registered and charges $50 per hour.

The Consumers Institute used to put out the rates for the various trades-people throughout NZ. I'm going to write to them and ask if they will do that again. We need this information.

Special thanks to you Donna. This is a great source for information.

Many thanks to all.
Sandie

[nD4ng3r]

General rule of thumb for a lot of companies when working out their charge out rates is multiply the rate you pay your employee by 3 (i.e. 1/3 for employee, 2/3 for company). So if you paying your apprentice $20 per hour, the charge out rate would be $60. Obviously, a lot of builders in a company are at different rates, so they probably just average it. However, I'm not sure if that rate should be inclusive of GST or not. If you paying any more than $80 I think you'd be getting screwed. $80 does seem to be at the top end.

[Meehole]

The builders we know in Auckland charge between $65 and $90 hour depending on experience and the scope of works.
The builder may not be registered with Master Builders but that means nothing. He may be a member of Certified Builders. The difference being that anyone can belong to Master Builders but only trade qualified builders can belong to Certified Builders.
You may engage a builder at a cheaper rate that takes longer to do the job so pay the same in the end.
Best bet is to ask for a price to do the job, make sure you understand the scope of works and that you compare apples with apples using the scope of works.
No one seems to object to paying $80 hour for a plumber or sparkie?
AS for the LBP, many older very experienced builders have not gone through the process of being a registered LBP. An LBP is only required if there are restricted building works. Depends on what you want done again.

[Sandie]

Yes nD4ng3r, 80$ per hour plus GST seems to be at the top end. Sandie

[Bluecoat]

I generally ask for fixed rate per square meter. That way dont have to rely on how efficient they are...

[Sandie]

I like it. Sandie.

[Wayne]

No one seems to object to paying $80 hour for a plumber or sparkie?
AS for the LBP, many older very experienced builders have not gone through the process of being a registered LBP. An LBP is only required if there are restricted building works. Depends on what you want done again.

I agree!
$80/hr by the time you work in the hours they can't charge for (sick, holidays, stat days etc) and the cost of their tools and ongoing education (LBP stuff) they aren't creaming it like some think.

[jimO]

I agree!
$80/hr by the time you work in the hours they can't charge for (sick, holidays, stat days etc) and the cost of their tools and ongoing education (LBP stuff) they aren't creaming it like some think.

as well as wasting time quoting jobs they dont get and the owner never bothers to tell them

[Sandie]

From my enquiries $80/hr + GST was what the foreman in charge of several builders would be paid.
The comment by Meehole that people don't mind paying $80/hr for a plumber or sparkie is hardly relevant and I have often heard this. When I engage a plumber or sparkie, it is usually for a very short time. When I engage a builder, it is usually at least for several days or even weeks.

Thanks for your input. Considering the size of Auckland and the amount of building going on, I'm surprised at the lack of information that people actually have about builders rates.

Sandie

[Wayne]

From my enquiries $80/hr + GST was what the foreman in charge of several builders would be paid.
The comment by Meehole that people don't mind paying $80/hr for a plumber or sparkie is hardly relevant and I have often heard this. When I engage a plumber or sparkie, it is usually for a very short time. When I engage a builder, it is usually at least for several days or even weeks.

Thanks for your input. Considering the size of Auckland and the amount of building going on, I'm surprised at the lack of information that people actually have about builders rates.

Sandie

Being paid as a wage earner and charging as a contractor are 2 very different things.
Someone charging $80/hr gets nothing like that as a wage equivalent.

[donna]

Being paid as a wage earner and charging as a contractor are 2 very different things.
Someone charging $80/hr gets nothing like that as a wage equivalent.

Yes they may take home the same as someone earning $50 hr as a wage earner, but as sole traders or under a LTD they would legally pay less tax than a PAYE. Plus get the GST off too. If you can get the work you're better off working for yourself.

cheers,

Donna

[Ogg]

I'm planning on doing a new build next year (based in Auckland) and have been looking for licensed builders who are willing to work for wages only.

The quotes I'm getting are between $60 - $70 per hour plus GST for experienced builders and $35-$40 for apprentices.

I think this is high but not over the top.

Ideally, I think somewhere in the $50's is where the fair market value should be long term.

Does anybody know any experienced builders willing to work for, or less than, $60 per hour plus GST? If so please PM me their contact details.

Cheers.

[Wayne]

but as sole traders or under a LTD they would legally pay less tax than a PAYE.

Not sure about that.
As a LTD any retained profit would be taxed at 28% but what they took as wages would be taxed as wages - I would have thought.
Any dividend they paid out of retained profit would get taxed in the recipients hands as per any other earnings.
Not an accountant but that's how I see it.