Most people often wonder whether the contract amount for constructing the structure, painting works or plastering has been profitable or not. It is not reasonable to evaluate the profit or loss regarding the contract for house construction in the same way as evaluating the profits of a business.
While selling a property or a building, the profit or loss in that transaction is calculated by analysing the amount spent for that property, the duration in which that amount had been static, the current value of the property and the amount that you earn from the sale. But, this is not the way to evaluate the profit or loss when it comes to the construction of the house.
The perfection and quality of the works and the looks of the structure are some of the factors that determine whether the construction has been profitable or not. It could be said that the owner enjoys profit when the construction is completed on time, using materials that have high quality. However, it would be a loss to the owner if the contractor had been lazy and irresponsible and fails to complete the construction on time.
You could have a general idea about the contract amount for various construction works by inviting quotations from more than one contractor. A consensus could be reached about the amount before signing the contract with a contractor or a firm that is known for doing a good job, even if the amount is a bit high. It is wiser not to entrust the construction to someone who quotes low amount and then tries to bargain.
Some people lament that the number of works done is insufficient compared to the exorbitant amount that they had paid. However, the contract for construction should not be compared with the standards of regular labour work. It is a common practice here to prolong the work if the workers have been hired for daily wages.
A contract labourer would definitely put in more effort and hours of work than a regular daily wage worker.
The owner is happy and satisfied when the construction is finished earlier than agreed. It is significant to know that a delayed project is a liability for the contractor too. In such situations, the owner should be kind to the contractor. In case the contractor had experienced loss despite completing the construction with honesty, the owner should show decency to cover the losses. No worker who had strived hard to fulfil our dream of building a house should leave with a discontented and heavy heart!