You've already signed a contract? Then the decision about whether you can/can't provide materials yourself has already been made -- but none of us know what that decision was!

A cost--plus contract typically includes language regarding installation of customer-supplied materials.

When a homeowner supplies components, it doesn't result in a smaller overall scope of work for the contractor. In fact, it usually complicates things for them. It may be that a homeowner-supplied fixture isn't compatible with the rough-in work or it didn't come with the necessary installation hardware which the contractor's regular supplier knows to include--either of which can add administrative burden and time to the schedule. On the logistics side, your contractor will need to coordinate delivery with you since they'll need to inspect everything when it arrives on site. Keep in mind that they'll be accepting the condition of the materials as appropriate for installation and sending them back isn't as easy as a phone call to their supplier.

Your contractor incurs the same risks that accompany the installation of any component including damage, paint getting on the component, etc. I think he/she is entitled to the 14% agreed fee on anything you supply for the project, but the language of your contract will control.

Who's on the hook if someone breaks something? While he's not putting up the money, he has some liability / responsibility.

I think that the ship has sailed with your contract... I think he'll fight you on this and if you've not done this to date or discussed it - it would seem out of bounds.

In addition to the above, Its also quite possible that your contractor is buying at a discount and then changing the 14%. It is possible that you may have to pay full price and thus may not be ahead of the game anyway.

This is something you decide upon before entering into contract.

Typically contractors, both your GC as well as trade contractors, will figure their fees based on the total job, which break down as a reasonable percentage that is applied. If I were to break a job down into high vs low risk (high fee vs low fee) tasks, there would be significant differences that to a consumer are unbelievable. The overall total looks reasonable.

So you if you want to cherry pick those items and the builder allows it, you save some fees and I'm guessing it would be that builder's hint to change future contracts.

Client has to take responsibility to warrant or service the warranty of client supplied products.

Me? I send my clients to trusted vendors who complete orders, take responsibility for projects and make my part easier, which allows me to charge lower fees. Break that chain and we all work harder. My trades work the same way. The tile contractor has to make his fees, but applies them to labor while I pay the material bills directly.

Is is very likely that your cost plus contract includes a builder's markup on all work the builder supervises (probably all work that is done on the house prior to your taking possession).

Typically, any price premium that you pay on materials is directly correlated to the value of your builder's time.

Unless you are talking significant savings, I wouldn't bother. Maybe a few big ticket items are worth price shopping and paying the builder's markup, but I suspect that just like the builder has already learned, searching, coordinating and warranty service are too burdensome to realize any real savings.

It's worth his markup to have him control delivery and ensure that all purchases are in good condition. What I did, was find the items to be purchased, got a price, and sent him the info. His add-on fee was for ensuring the item was appropriate for the space (fit the area and met code when necessary), ordering, handling receipt, dealing with damages, and ensuring proper installation. I'd say that worth money to me.

I would just ask the builder if you can provide the fixtures. State you will provide specs and procure well before install. None of us can answer the question otherwise.

Most builders allow Electrical fixtures by owners because the electricians don’t bich and moan like many plumbers. I am in the plumbing fixtures business by the way I know exactly how these trades work.

@whaas_5a You must not be there when the electrician is complaining!

I'll equate the customer supplied toilets & ceiling fans

I was tempted to do the same for lots of things (not under contract yet, and won't be a cost plus), but at this point all I'm planning on outsourcing is some tile and a few light fixtures that I really can't get from my builder's vendors. I realized that for me it isn't worth the hassle just to save a few bucks on this big a project, especially if something breaks or goes wrong.

Our builder allowed us to purchase our own fixtures because it’s an external component, style is a matter of personal preference, and there are so many options of comparable quality. We do have someone else responsible for ordering, ensuring it’s correct, etc. I would take a look at what your options are through the builder vs the internet/local lighting stores. If you like what the builders’ suppliers have to offer, you could save yourself some hassle. If not, plenty of people self-supply!

Many cost plus contracts allow owner supplied—and builder approved—-materials. However, almost none will remove the markup for that. The materials choices are too integrated into the work scheduling and oversight. They need the builder’s involvement, even if it’s a quick glance at the specs to say it will physically work.

The only exceptions are sometimes standard appliances, if the owner assumes all responsibility for scheduling, delivery, storage, and install. If the appliances are anything other than a standard 30” freestanding range, or standard washing machines, and they require precise placement for gas and electrical, or built in enclosures, then the builder has to be involved. He earns his markup.

In a cost plus contract, the suppliers discounts are passed to the homeowner. So even with his markup, you may find that it’s still cheaper than retail to go through and choose products from the suppliers rather than strike off into the internet.

Its not so much that the GC's markup would add unfair costs to the project, its the subcontractor's markup because all you will see in the payment request is the cost to the GC plus the GC's markup.

The two traditional methods used to encourage price shopping by the GC is to include a Guaranteed Maximum Price (GMP) in the contract and/or to require the GC to show you the competitive sub bids and allow you to choose the one you want (adjusting the GMP for increases above the low bid).

If the subs have already given fixed prices to the GC, its a bit t late to be asking the GC to pass up his Fee on certain materials. That as well as cost control methods should have been negotiated before the contact was signed.

We've discussed supplying some items. But mostly because what I want isn't available through his usual vendors. It won't save me anything.

OTOH, we have multiple bids available on some items FROM the builder so we can select the one that suits us best. (Windows, for instance)

@ Jeffery

I feel for you as you now have to deal with moaning plumbers and electricians!

The only time I hear complaints is when off brands that require additional assembly or poor fit components are supplied versus a brand like Seagull

If homeowners are including solid brands that are easy to install the subcontractors don’t give a crap it’s actually the GC that gives a crap. That type of stuff is easy mark up. Now when the crappy stuff is supplied I do understand it becomes a pain for the GC and the subcontractor

Thanks all. Overall my thoughts as well.