Most people often wonder whether the contract amount for building a structure, painting work or plastering was profitable or not. It is not reasonable to assess the profit or loss relating to a house building contract in the same way as assessing the profits of a business.
When selling a property or building, the profit or loss from this transaction is calculated based on an analysis of the amount spent on the property, the duration for which this amount has been static, the current value of the property and the amount you will earn from the sale. However, profit or loss during the construction of a house cannot be evaluated in this way.
The perfection and quality of the works and the appearance of the construction are some of the factors that determine whether the construction was profitable or not. You could say that the owner enjoys a profit when the construction is completed on time, using materials that are of high quality. However, it would be a loss for the owner if the contractor was lazy and irresponsible and failed to complete the construction on time.
You can get a general idea of the contract amount for various construction works by calling more than one contractor. A consensus on the amount can be reached before signing the contract with a contractor or firm known for doing good work, even if the amount is a bit high. It is wiser not to entrust the construction to someone who offers a low amount and then tries to negotiate.
Some people complain that the amount of work done is insufficient compared to the huge amount they paid. However, the construction contract should not be compared to the standards of ordinary blue-collar work. It is a common practice here to extend the work if the workers were hired on daily wages.
A contract laborer would definitely put in more effort and hours of work than a regular daily wage laborer.
The owner is happy and satisfied when the construction is completed earlier than agreed. It is important to know that a delayed project is also a liability for the contractor. In such situations, the owner should be kind to the contractor. In the event that the contractor suffered a loss despite honest completion of the construction, the owner should demonstrate the decency to pay the losses. No worker who worked hard to fulfill our dream of building a house should leave with a dissatisfied and heavy heart!