MitchMan
Mar 6, 2009, 5:06 PM
Post #20 of 23
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Re: [MichaelEL] Recent construction costs/new builds
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Want the real facts? Materials cost for "simple construction" (simple floor plan, basic materials, simple architecture, inexpensive finishing) = $25 USD per sq ft. Direct labor cost = $25 USD per sq ft. Any amounts you pay above $50 USD per sq ft is split between what goes into the contractor's pocket and additional costs of construction that relate to cost beyond simple construction. The difference in cost per sq ft that relates to other than simple construction can be and additional $25 USD per sq ft and very easily more. That will depend on the specs that you stipulate: split levels, archways, granite counter tops, expensive wall and floor tile, high ceilings, contoured ceilings, expensive cabinetry, imaginative floor plans - OR - Matchbox floor plan, normal ceiling height, no archways, common cabinetry, $1 USD per sq ft floor tile (no wall tile), simple stock sized windows. A reasonable cost for simple construciton can be as little as $70 USD/sq ft or you can get to $125 + per sq st fairly easily. It's your call.
The caution that I want to mention relates to the contractor performance and his fee. Often times contractors may not do much if any actual work. They will simply oversee and manage his abanils (skilled but unlicensed construction worker/supervisor). They will hire labor that they pay $300 to $600 pesos per day, but give you the impression that much of the money per sq ft that you pay relates to direct labor but the reality is he is pocketing almost as much as he is paying his labor in total, usually a minimum of $20 USD per sq ft. If you do the math, a contractor will make as much or more as a Newport Beach attorney per hour on your project. With regard to performance, you absolutely must protect yourself with a good contract that includes many of the safeguards as an American construction contract would. I spent many hours writing my contracts and have had them reviewed by both American and Mexican attorneys until I was satisfied. The typical Mexican contract provided by a contractor usually only provides stipulations and specifics for his advance payments with a weak withhold % and virtually no protections for you with regard to the many, many ways things can fall short or fail with no express remedy for you in the contract. For the construction that I had done, I paid for all materials and hired an accountant to do the payroll, I paid the payroll. That takes a presence at the construction location for the entirety of the construction, well, I guess you could say I was my own contractor and I used abanils and regular workers. That way, I am able to keep my construction costs under $50 USD per sq ft consistantly...so far. Hope this helps.
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