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You have engaged a Builder to carry out some building works on your property, and mid-way through this work, you decide to instruct the Builder

You have engaged a Builder to carry out some building works on your property, and mid-way through this work, you decide to instruct the Builder to carry out some additional work as described below.

You have decided to strip-out and re-tile your bathroom, and to supply new carpet to and paint a bedroom, and the Builder is to charge you as follows for this additional work.

Bathroom

  • You want thefloorandall four wallsre-tiled
  • The dimensions of the bathroom are as follows

Width - 2 metres Length - 3 metres Height - 2.5 metres

  • The bathroom door is 1 metre wide and 2 metres high
  • There is one bathroom window which is 2 metres wide and 1 metre high
  • The strip-out of the existing tiles will cost $1,000.00.
  • The tiles you have selected cost$75.00 per square metre, andan extra 10% of tileswill be purchasedfor wastage (do not use this extra amount to calculate the cost of the Tiler laying the tiles)
  • The Tiler charges $75.00 per square metre

Bedroom

  • You want the ceiling and all four walls painted withtwo (2) coats of the same colour paint
  • The dimensions of the bedroom are as follows

Width - 4 metres Length - 4 metres Height - 2.5 metres

  • The bedroom door is 1 metre wide and 2 metres high
  • There is one bedroom window which is 2 metres wide and 1 metre high
  • Onelitre of paint will cover 10 square metres
  • Paint costs $20 per litre
  • The Painter charges $45.00 per hour, and it will take him 6 hours to carry out all of the painting work
  • The carpet you have selected costs $60.00 per square metre, andan extra 10% of carpet will be purchased for wastage (do not use this extra amount to calculate the cost of the Carpet Installer to laying the carpet)
  • The Carpet Installer charges $30.00 per square metre to install the carpet (stripping out and removing the existing carpet is free)

Overheads and Mark Up

  • It is costing the Builder $250 per week to have a Construction Fence up and a Skip Bin supplied for other building work he is already carrying out for you, and this additional work will increase the length of the whole project by ONE WEEK
  • The Contract between you and the Builder indicates that he is to charge you a 'Builder's Margin' of anadditional 20% added tothe whole total costpayable by him for all materials, labour and other costs (inclusive of GST) -do NOT merely add this margin only to the Fence/Skip Bin costs)
  • All prices above areinclusive of GST

Instructions

Estimate and determine the Total Cost that the Builder will charge for you this additional work as part of the project,includingmaterials, labour, overheads and margin.

PLEASE NOTE THE FOLLOWING:

1. You should include calculations,subtotals and the Total Costeach time you answer and re-answer this question, so we can provide you with some guidance if your answer is incorrect.

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