QUOTE(chickenessence @ Mar 8 2016, 11:39 PM)
Share my opinion.. I could be wrong, but hope at least i am making sense.. hehe.
Best person to answer this question will be people from developer or Quantity surveyor, aka cost controller.
During design and planning stage, usually the developer will keep a data / spreadsheet of all the cost of the projects.
That includes all the consultants fees, land cost, project budget (contract sum of the projects), their internal cost (project team, marketing, admin, etc), authority clearance fee / contribution, and other unforeseen cost, etc.
From there, they will work backward to to see the Net Sale-able Area to determine the selling price of the units. So that is how they pass this info to the marketing team and thus the selling price is revealed to all the buyers.
Sometimes could be other way round which means the marketing team done a survey what is the market requirement.. like what size of the units are preferred, what must be provided, facilities, and affordable price by the people for that properties. Then the project will work to meet the budget.
To answer your question, each party mark up how much for profit.
Depends on how you see it.
Developer just have to take note all the cost as i mentioned above. Perhaps u might be asking how much contractor has mark up each items to their client / developer.
Maybe take an example of supply of floors tiles.
Floor tiles supply this at one price, then local distributor mark up it and sell it to the floor tiles contractor. And there is X contractor won a contract from developer. X contractor sub-contract it to Y contractor to run the show where they appoint the floor tile contractor to do the job.
So you can decide how much things has been marked up from there. (of course sometimes contractor also getting bulk supplies with cheaper price, but have to cost in for installation cost, warranty / defects ).
Hope that answer your question.
In a way, developer may be able to sell at cheaper price if they have their own construction team. (developer cum contractor.. but not always the case).
Previously i worked with developer than seconded to main con. Best person to answer this question will be people from developer or Quantity surveyor, aka cost controller.
During design and planning stage, usually the developer will keep a data / spreadsheet of all the cost of the projects.
That includes all the consultants fees, land cost, project budget (contract sum of the projects), their internal cost (project team, marketing, admin, etc), authority clearance fee / contribution, and other unforeseen cost, etc.
From there, they will work backward to to see the Net Sale-able Area to determine the selling price of the units. So that is how they pass this info to the marketing team and thus the selling price is revealed to all the buyers.
Sometimes could be other way round which means the marketing team done a survey what is the market requirement.. like what size of the units are preferred, what must be provided, facilities, and affordable price by the people for that properties. Then the project will work to meet the budget.
To answer your question, each party mark up how much for profit.
Depends on how you see it.
Developer just have to take note all the cost as i mentioned above. Perhaps u might be asking how much contractor has mark up each items to their client / developer.
Maybe take an example of supply of floors tiles.
Floor tiles supply this at one price, then local distributor mark up it and sell it to the floor tiles contractor. And there is X contractor won a contract from developer. X contractor sub-contract it to Y contractor to run the show where they appoint the floor tile contractor to do the job.
So you can decide how much things has been marked up from there. (of course sometimes contractor also getting bulk supplies with cheaper price, but have to cost in for installation cost, warranty / defects ).
Hope that answer your question.
In a way, developer may be able to sell at cheaper price if they have their own construction team. (developer cum contractor.. but not always the case).
Not really cost saving because whatever we do not for profits but for developer status.
Mar 12 2016, 11:36 PM

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