How do you think they manage it then Woody? Pre-orders, better trade prices, high mark-ups on their jobs, downgrade the specs, another?
We were notified of their problems, and expected claims for excess costs (the contracts do allow for certain unforeseen costs and events to be claimed) but in the end, the margins, savings, working smarter, or better rates from other works meant that the costs could be absorbed. Whether this meant reduced profits I don't know, but it certainly did not mean losses or breaking even.
And TBH. that's what all contractors do, they allow for cost fluctuations in their pricings, and if a contract is used, there are normally provisions for excess unforeseen costs to be dealt with.
In the Op's case, as mentioned by cdbe earlier, they will simply price a £100k job at say £120k to allow for the risk. Just like loan companies charge higher interest for riskier customers.
But what I see with lots of small builders nowadays, is that they don't know how to price, or don't want to price to allow for risks. All builders are in demand, they can pick and choose what they want to do and so want the customer to burden all the risk.
You can be damn sure that builders wont rebate customers when they make "too much" profit. They want it both ways - easy work, no risk and lots of profit, and the way the market is they can get it.
A for the customer buying materials, that is a massive risk for the customer. Breakages (lack of care by the builder) warranties, defects, late deliveries, wrong deliveries, missing parts you name it, again you can be damn sure that the builder will want the customer to pay for anything related to anything that is not quite right with material orders. So again, no risk for the builder but more profits to be had.
