I do not understand how a roofer thinks he can charge for Overhead and Profit when he's not a GC. or even coming close to fulfilling the role of a GC.
Charging O&P when all your doing is a roof is fraud in my opinion. His price already includes materials, labor, and profit.
I guess they really don't understand that a subcontractor who is working for the GC is charging about the same prices and the RCV lines in the estimate, which of course leaves nohting for the GC, hense O&P.
The GS has to provide a warranty for all trades involved plus coordination of mulitpul trades etc etc. Where does the single trade roofer think he deserves the O&P. I'm confused.
No reason to be confused, your reasoning is sound. Anyone trying to charge O&P on a single trade job is simply charging profit on profit. You're preaching to the choir.
DEMIGOD: Any chance you could drive over to Weslaco and explain this to ReconMan? You know, roofer to roofer. He doesn't seem to comprehend when we tell him.
Yeah I am confused as to why roofers think they can get O&P!!!! :P
I read through some of reconmans post's and I understand exactly what he's saying. He feels the insurance company uses a GC business model as part of the factors used to decide permiums, and I guess he feels the same should be considered when a claim is paid. He feels that the insured pays a premium partly based on a sound GC model then they have in essence paid for a GC do the repairs, wheather it's one trade or many. His logic is not flawed but maybe a little misguided perhaps?
I think the flaw in his logic is that GC costs are figured in when the full replacement cost of the dwelling is computed and premiums are based on this full replacement cost. But loss experience is also figured into that calculation. Most losses are not major rebuilds. This is also figured into the premium calculations. I think our friend Conman is completely overlooking this little fact.
So if I understand you correctly. The scenario like a home blow off it's foundation or burned by fire are what your referring to as "full replacement cost" as it relates to a claim requiring a major rebuild. no?
Overhead and Profit?
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Posted - 04/19/2004 : 18:39:38
