Fee structure

A large part of our 20-year success is that our fee structure has always been very simple and completely transparent and is based on our learning of the industry over the past two decades.

The Revive Projects fee is 17.5% on all disbursements to suppliers and sub-contractors.

We have found that the two key points of frustration that
clients usually have with builders are one of the following:

Underquoting to get the job:

Here the builder quotes the lowest price and breakeven (or less in order) to secure the job. In this scenario the express intention of the builder/contractor is to make up the margin on “extras” at every opportunity.

Building in risk to pricing:

In this case, builders/contractor protects themselves against risk and unknowns by building in extra margin for any unforseens that might occur and which they would have to deal with against a fixed price contract.

Based on the above, Revive projects has successfully built both its business and reputation on the following client relationship and business model.

It is founded on a few very important principles that foster mutual respect and manage bilateral expectations, not to mention the most efficient use of budget.

Step 1: Initial visit and scoping (with indication budget)

In order to speed up the process we will usually give you a very rough “first look” indication budget. It is important to emphasize that this is NOT a quote but an indication budget of what one should be prepared to spend, given the client wishes. The intention is a very quick reality check and to ensure that expectations are aligned.

Step 2: Detailed budgeting

Based on acceptance of the above, Revive Projects will draw up a detailed Scope of Work (SOW) and budget for the project. Please note that this not a quote but an at-cost budget of what the projects is expected to cost. To this cost Revive projects will add a management fee of 17.5% of project.

Step 3: The Building Process

Please note that Revive projects operates on positive balance draw-down basis. Before building commences, a deposit will be required. This deposit amount will vary from project to project and from client to client, depending on the frequency preferred by client. Usually, payment amounts are for envisaged building costs for the next 2 to 4 weeks building costs (plus management fee). During this process, regular budget updates will be provided (usually once a month), including any adjustments to budgets due to changes in SOW.

Step 4: Final snagging and handover

On completion and final handover, the final 5% of payment is due. The benefit to clients of this structure is that you always see the true cost of the build, there is no incentive to cover for risk or to underquote to get the job (and then making margin on inflated “extras”. You are in control with full visibility of all costs at all times.

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