General Conditions Rates
I am negotiating a GMAX contract with a GC and wanted to get some feedback if these rates make sense. This is for a $12M commercial project. I want to make sure that these are inline with industry standard.
Project Manager about $13k/month
BUILDING SUPERINTENDENT $14k/month
ASSISTANT SUPERINTENDENT $12k/month
Also there are charges like Corporate Safety, Warranty program, etc.
In addition to general conditions, they want to charge for the trailer, dumpster, etc separately. I thought it was all inclusive.
I am hoping to get some direction from someone experienced with this on this forum.
Thanks!
Parzival7, bummer your thread hasn't had a response yet. Maybe one of these threads could point you in the right direction:
I hope those threads give you a bit more insight.
The time for the project's superintendent and PM is part of the overall General Conditions. Are you trying to set up a lump sum GC fee or are the GC's also reimbursable? I personally like to go lump sum GC's with a GMAX and they bill it as a % of the projects billings each month. For the above line items you laid out for example, $14k a month for a Super comes out to about $85/hour. That's pretty cheap honestly and a good deal. At a macro level, I typically see total project GC's (with staffing) cost around $35-45k per month for a large industrial type project. Usually all of your temporary facilities are part of GC's, that's why you are seeing the bullshit items like 'safety program" etc.. GC's are what it takes for a General Contractor to run any project. They are all items that are required to keep the lights on, outside of their Fee.
GC is lump sum per month in the range you specified but it's open book so they have to justify the costs. To get up to the monthly costs, they have included a lot of BS costs. They want me to agree to costs outside of negotiated GC for drones, etc. They padded up GC and then remaining costs are part of this other fees.
My goal is to have them reduce the GC and include temporary facilities as part of GC.
Check their labor burden rate. Be suspicious of anything above 0.5. Ask what is included there. Sometimes they account for stuff like staff bonuses into that rate. The other stuff sounds kind of typical.
I am not sure what labor burdon rate is. Can you elaborate? They are including temporary facilities and controls as a separate line item. Is this normal? I would think this would be part of the General Conditions.
Labor burden is the cost to the employer to employ someone, not including their salary. The benefits you receive as an employee are an example.
You said this is open book, so you should see every item of the general conditions accounted for. I'm not sure which "controls" you are referring to, but temp facilities (assuming this is the GC's trailer?) are part of the general conditions.
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