Builders that take a cut of sub-contractor costs vs ones who don't

Every time I ask my builder for something, he gives me his contact and says ask them to bill you directly. A first I thought oh he's probably taking a cut...but the quotes they're all coming back with are either highly competitive or below all the other quotes, which makes me think he's genuinely not taking a cut.

Usually all sub-contractors invoice the builder directly and he adds on his cut.

So I was kind of surprised. How often does this happen? I thought it was the norm for builders to take a cut from everything that's done?

 

Seems like a good way for the builder to absolve himself of liability.

 

Non core business to be paying others. I'm sure he costed his profit in.

When I walk into a retailer I dont ask what it cost them. I just want to know what it costs me is competitive.

 

Mine does that too. He'll actually organise his subbie blokes to come in (ie painter, tiler etc) and quite me and I pay them direct

 

How common is this? I've always thought builders would try to manage everything to take their cut?

 

Guess or depends on the builder and the relationship you have with them. I've built two houses with this one now and we get on like old pals

I suppose most people build with spec home companies nowadays, whereas this guy was old school and only charged for work done ... ie moving a window charged at the time it took to move it, not the standard spec home $1,000

 

Yeah my guy is like that, super wholesome guy. Love dealing with people like that. Every dollar he saves me ends up back into his pocket anyway cause I just keep expanding the scope of what I want every time some budget frees up.