Depends on your arrangement with the general contractor/homebuilder.

When I acted as a project manager, I was paid a flat rate, so I had no interest in material costs other than getting the best deal for the homeowner.

And even in that case, materials were part of the contract for many trades, including drywallers, plumbers, electricians, roofers, insulators, HVAC, drainwork, poured foundations, alarm and central vac installers, caulkers.

As a licensed homebuilder, after trying various approaches, it worked best to pay directly for framing and finish lumber, trusses, flooring, windows and doors, cabinetry, ceramics, masonry and cladding, pre-manufactured staircases.

For the balance, separating materials from labour was not worth the effort.

But if you want to be your own contractor, feel free.

I would think there would be an advantage to buy items from the company you work for as opposed to competitors' items.

I had a client that requested a certain window manufacturer's windows for his house because that certain window manufacturer bought a fleet of trucks from him.

Most subs will still charge more because they are assuming wrong quantities and poor inspection and quality control by you,

A good point.

But as long as you use discretion, it can still work. But be prepared for some scrambling if you insist on supplying every little item yourself. If it's a major category, such as framing, have the takeoff done by the lumberyard.

I would think it would...most tradespeople I know would help you make it work...they would probably add a fee, since they would not be making anything on the markup, but you should come out ahead.

Residential construction costs run about 50% materials and 50% labor cost with the general contractor's overhead and profit allocated to each. So a 10% savings on all of the materials used would produce a total project savings of 5%

First, thanks for all the input.

It mostly confirmed what I suspected. Which is in theory “maybe” there could be a saving.

However, it’s tough when you could be cutting into other people’s profit.

There’s a good chance that I do a lot of work, only you see a net marginal savings + major headaches and/or delays.

On a side note, I found out that I can actually get Cost + 5% if building a home, and spending at least 25k on materials.

I’m going to keep this door cracked open, but most likely not stress about it. 👍

thx again.

You have true access to product at a wholesale level below what your contractor would pay. Be up front with your contractor. Owner supplies ____________., builder installs for $_____.

We negotiated with our builder to purchase certain stand alone items directly to avoid any mark ups. This was great as we were able to wait for sales and spread out over time. We had to negotiate this with them.

I have seen custom build contracts where certain finish materials such as flooring, cabinetry, specialty trim work, fixtures and appliances are to be provided outside of the builder contract... usually through a separate subcontractor decided by the architect or decorator. The architect or decorator then takes over the role of general contractor for those items. Are you prepared/able to be the gc for the materials you provide.