[QUOTE=
example in case i wasn't clear.
a bathtub costs $500. but the builder gets a better deal than retail from a supplier and only paid $400 for the tub. the builder provides the $500 invoice to the client and pockets the $100. on top of that, he probably added a 30-35% management fee. this scenario also requires a supplier to go along with the scheme, but it does happen.
if you get an 'all inclusive' be careful as well. make sure there are provisions to cover your arse for cost overruns, construction delay costs etc.. also, be very attentive during construction, as corners will be cut in order for the builder to maximize the opportunity for profits.[/QUOTE]
As a contractor myself, it usually takes time, reputation etc to get good prices from suppliers because I buy alot and am a good customer. A home owner CAN'T get my prices, that's why I'm a contractor. when I add on my mark up it is still cheaper than the average person can get and I always offer the home owner to either supply materials themselves or I will do it. Of course I make money on it, that's why I'm in business, so your idea of a contractor "pocketing" money with the supplier "going along with it " is very misleading.
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