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Contractor vs. Owner Builder & Commercial Manager




This estimate was based on a budget of ZAR 1,200,000 for a 3 bedroom house. What is imperative that the commercial manager have qs, contract management & project management skills. Interest rate is at 10% over a 20 year period. Stand cost of ZAR 500,000. Estate Agent fees were calculated at 7,5%.











It is significant to note the saving incurred in the process.
1. Total Saving - ZAR 2,150,000
2. Interest on Building Cost Saved Projected @ 10% - ZAR 1,075,000
3. Reinvest Savings @ 13% - ZAR 800,000
4. Contractor's Price - ZAR 5000 vs. 3850 / m2 - ZAR 270,000


The following motivation can be substantiated regarding risk avert clients:
1. More control over construction process
2. More control over appointment of sub-contractors
3. Better "product" in the end due to better value for money.
4. Client can be involved in the whole process.
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