Advice on builders tendering

[acresswell]

I'd appreciate some advice from anyone in the building trade, please...

We've got planning permission for our new build and the plans have also been passed by building control.

We're lucky enough to have a family member working for one of the big building products firms. He will be able to source us several key products (e.g. bricks, blocks, ready-mix concrete) at lower prices than will be available to builders via their normal routes. The price will vary according to exactly when the work is done... he can't get us a fixed price but it will be similar to the normal price paid by builders merchants before they add their markup, and will also allow us to do things like ensure our concrete is as low-carbon as possible.

On the small number of key products, I can see two possible ways for it to be organised... a) the builder could order them from our nominated supplier and be responsible for paying the invoices, but we arrange for the materials to come at a special price (as yet unknown)... or b) we set up an account in our name, which the builder can then use for those materials only. Any thoughts on which would be best from the builder's point of view? 

How would you suggest I write this into the tender documents? I'll be working full-time, so the builder will still need to be responsible for scheduling deliveries, specifying quantities of concrete, etc.   Am I right in assuming that a builder would usually include a mark-up on the materials for a job?

Struggling here because this is way outside my experience, so any thoughts welcomed...

[biff]

congradulations acresswell,on getting your permission through.
           the best way to go about your job is to break it down into different sections,
      the founds,,digging,concreting,pipelaying,manholes and gullies.,,,,,,brickwork or blockwork below dpc,usually shows a mtr on the plan but could be deeper if the ground is soft.,,then backfill,hardcore, membrane and slab,(concrete subfloor)
    the above is the only time and place on the job where you are at the mercy of the builder simply because the founds could go deeper and it depends on the building inspector to give the go ahead to pour the concrete. you can ask for a breakdown on all the prices for the different sections,
  no 2, the first lift,,dpc,block/brickwork,cills,catnics or lintils,,,first lift is usually about 6ft,,scaffold height,  then up to joist height,or ceiling height, it is easy to work out the quantity of material if you take it by the stages and then add it together,finish all the brick/blockwork .get a price for all the brick/blockwork,,,,,,,
     no 3,, the roof,,give copy of roof plan to your timber supplier and get 3 quotes,pick the best,no necessarly the cheapest, you will find a registered roofing contractor and you should by now have a price for roofing material and labour complete.
    no 4,,,,windows ,floors,,doors,installations such as toilets being connected up,rads fitted double sockets everywhere and plenty of oppertunity for low energy lighting,kitchens ordered.beware of window salesmen,go direct to the makers and learn the rules about metal reinforcing insides the uvpc windowframes and doors,any wobbly stuff and you look elsewhere.
    no 5,,pray for a decent plasterer,,
    no 6,,second fixings,skirting boards,architraves,locks and door handles(expensive hardwood staircases),,,,,kitchen installation.
    no 7 clean the place out and do the decor in white everywhere,white emulsion and white gloss, you will be redecorating later anyhow.
  there has been no mention of insulation at all because insulation is a big item on its own. you should consider dry lining and soundproofing and insulating wooden floors,do as much research as possible on insulation before you committ yourself.only employ a recommended builder, go to his last two jobs,do not tempt the fates by opening an account for any builder or bishop.builders love cash but do not part with it until you are satisfied that things are good, once cash is gone then the lever or whip is gone as well..good luck,,
                                                                                                                      biff

[acresswell]

Thanks for your quick reply, Biff. 

I've been advised to split up the work pretty much as you describe, so it's nice to have confirmation. The groundworks are complicated because it's on a hill, so the intention is to go out for 2 separate tenders...

tender A (as you describe) to be the necessary retaining wall, foundations, drains, ducting for services, rainwater tank. It will involve more concrete than I'd like, which is why I'm particularly keen on keeping keeping the concrete as low-carbon as possible.

tender B to be your stages 2,3 and part of 4.  Basically walls, floors, roofs, rainwater goods and external doors/windows fitted (weathertight)

We'd be happy for both tenders A & B to be done by the same main contractor (and can see that there would be several advantages), but we're also aware that they need different skill sets/equipment. The retaining wall is likely to be outside the experience of most "everyday" homebuilders, but once the retaining wall and foundations are in place, the only difficulty for tender B will be the relatively tight access.

Once the house is weathertight, we plan to take more direct responsibility for sourcing materials and subcontractors.  We'll be able to check the inside of the shell for potential problems related to airtightness before they get covered up. We'll know by then whether there were any nasty surprises in the groundworks, so we can amend the spec to suit the remaining budget if necessary. We do have experience of renovating 2 houses from plasterless empty shells, and have good relationships with a carpenter, a plasterer,  a plumber and an electrician who we would happily use again.

But the bit I'm struggling with is how do I set out the tender documents for the first 2 tenders, to ensure that if we get lower prices for bricks, blocks & concrete that we get at least some of the benefit, not just the builder. Is a builder likely to be willing to tell me how much he would pay for those items and then reduce his price if I can get them cheaper?  I don't want to put builders off by making things too complicated (the sloping site and narrow access will already do that!), but I don't want to make use of my contact just to give the builder a bigger profit.  I'd rather just let the builder pay normal prices and avoid the hassle!

Thanks!

[biff]

one of the big considerations is access.
      you need good access. bad access is a sickner especially when you are dealing with multiple loads of concrete.you need to have your access road able to take the concrete wagon right up to the founds so the gang can concentrate on their work and not get hassled with trucks getting bogged or worse,blocking the route. so it would be feasible to hire a machine to raise or lower the levels of the access to make it easier for the concrete wagons to back up to the section being poured.the only other alternative to this is to pump the concrete which is expensive but might be best in the long term.
   if you have a lot of concreting to do then it will be necessary to source a good gang to do this.these gangs work quick and specalise in getting the job right first time.that is how they make their money.they can make it look so easy.if there is a lot of reinforcing steel then you will definatly need a good gang.it is highly unlikely that the normal builder would be able to tender for this type of work so they would sublet out that part,however they would also be responsible for the outcome.
 it will also be necessary to learn to use a laser level (simple) you will be able to come on the job in the evening as the light is fading and do quick level checks with the laser.
    about the business of getting the material at cost price and explaining this to the builder,,i am not so sure.i liked to be fully in charge of exactly the time and quantity to be supplied and i did add on 20 percent for handling and breakage however this would have been still well below the normal price.i guess you could mull it over with your builder,one other thing,,, no matter who you get to do your work, you gotta keep an eye on them,,and let them see you keep an eye on them and if they foul up,,they pay for putting it right.
                                                                                                             biff

[titan]

Something to be aware of is your Vat on materials for reclaim ( I assume it is a selfbuild) If your builder is Vat registered he should not charge Vat on the materials or labour. If you buy the materials you will be able to reclaim the Vat on completion but for cashflow it my be better not to have to pay Vat.

[acresswell]

Thank you for all the advice!