Advice on General Attendance Fee to builder

Avajean

Hi,
Can anyone give me advice on General Attendance fees that builders can charge. I was under the impression that this was a %fee given to a builder if we used a subcontractor not employed by the builder or on items that come supply + fit eg. Windows. Our QS says that the builder is entitled to a % fee on all PC sums ie anything he purchases for us using his VAT no. Eg. Tiles, wooden floors, ironmongery etc. We did not agree any GA fee on most PC sums in the Bill of Quantities and yet our QS says it is implied. Would appreciate your advice/thoughts on this. Thanks.

Bonzo Delaney

Avajean wrote: »

Hi,
Can anyone give me advice on General Attendance fees that builders can charge. I was under the impression that this was a %fee given to a builder if we used a subcontractor not employed by the builder or on items that come supply + fit eg. Windows. Our QS says that the builder is entitled to a % fee on all PC sums ie anything he purchases for us using his VAT no. Eg. Tiles, wooden floors, ironmongery etc. We did not agree any GA fee on most PC sums in the Bill of Quantities and yet our QS says it is implied. Would appreciate your advice/thoughts on this. Thanks.

Why not just supply the finishing materials your self and let the builder supply labour only cutting out PC sums

BryanF

A builder is asked to buy materials, he gives the keenest rates to get the job/probably at a discount,(pays less vat than the home owner has too), but he has to find the thing you want/ring around which takes time, drive to get it, pay for it on credit, have storage/mind the goods/responsible for the goods until they are installed, allow for breakage, deal with you and the supplier if there is a problem with the goods. Builder then has to install it/which is another chance for breakage/ then (a good builder) has to protect it - For All that hastle they charge a rate.

As regards PC sums - assuming that money is used to purchase/construct something the above applies.

You've got to look at the plus side of this. It's the builders problem to manage all materials and subcontracts and interfaces and schedule works etc - that's a balls of a job and would effectively be a full time job for you, for which he take a small % fee

otherwise they do what? Charge a flat fee for all risk and management of the project?

Calahonda52

As above plus:
We did not agree any GA fee on most PC sums in the Bill of Quantities

Was this by omission and you just now realise the item as a cost or did you specifically state that you were not paying them and have that in writing with builder and QS

Avajean

Thank you for your replies.
Our QS had GA fees of 10% in for certain items eg. Sanitary ware, radiators, joinery and windows
We have about 10 other PC sums ( tiles, wooden floors, ironmongery, salvaged slates etc) for which there was no stated GA fee in the BQ. The GA fee was not explicitly omitted nor included for these items. We are confused as to why the GA fee was not included on all PC sums at the tender stage if this is the norm. We now have an increased cost of approx 5k onto the project ( 10% on PC sums) which we were not aware of at tender. We have requested a reduction to 5 % but builder will not agree to this.
At tender, we got a price from builders electrician and plumber which we have agreed to go ahead with. Is there an extra GA fee on these quotes too?

Avajean

Avajean wrote: »

Thank you for your replies.
Our QS had GA fees of 10% in for certain items eg. Sanitary ware, radiators, joinery and windows
We have about 10 other PC sums ( tiles, wooden floors, ironmongery, salvaged slates etc) for which there was no stated GA fee in the BQ. The GA fee was not explicitly omitted nor included for these items. We are confused as to why the GA fee was not included on all PC sums at the tender stage if this is the norm. We now have an increased cost of approx 5k onto the project ( 10% on PC sums) which we were not aware of at tender. We have requested a reduction to 5 % but builder will not agree to this.
At tender, we got a price from builders electrician and plumber which we have agreed to go ahead with. Is there an extra GA fee on these quotes too?

Hi Bryan F:
To date I have sourced all the PC sum materials, shopped around, made the calls, negotiated the price, paid for delivery to the site etc. When I have chosen them, I pass the quote to the builder and he pays for the items ( after we have paid the money into his account first). I understand he has to co-ordinate delivery and store, however 10% fee is high for this. I would expect the supplier would stand over any breakages up to point of delivery.

mcneil

Would it not befair for the builder to charge a small fee for his time collecting and driving materials to job. Yes hes probably gave labor costs for work but it isnt unreasonable for him to ask for small fee for his time sourcing materials.

BryanF

Avajean wrote: »

Hi Bryan F:
To date I have sourced all the PC sum materials, shopped around, made the calls, negotiated the price, paid for delivery to the site etc. When I have chosen them, I pass the quote to the builder and he pays for the items ( after we have paid the money into his account first). I understand he has to co-ordinate delivery and store, however 10% fee is high for this. I would expect the supplier would stand over any breakages up to point of delivery.

List the PC sums, the materials and who is installing thanks

Bonzo Delaney

I think the op's main query is that they don't have a problem with the ga fee it's the fact it was never mentioned in the original contract
The QS said it was implied !??!
I'm sure the op isn't a clairvoyant so how were they supposed to know the bottom line wasn't really the bottom line once they didn't deviate from the original contract
I'd be of the opinion that the QS is as fault for not alerting the op to the potential added cost from the outset of gen att costs if they went down the route of the builder supplying final fixtures and fittings. At least they'd have the choice to do all the organisation themselves if it worked out better value for them.
Of course the builder has to be paid for his time hassle and responsibility along with vat associated costs.