How Much Is Power Worth To Large Housebuilder?

[skilly1]

We have 220+ houses being built by a major homebuilder next to our business.

They are just about to start with services etc and the main contractor has been in touch. He was asking if we have any power they can use to run the site as they won't have mains power for a good few months, minimum 6. He said generators are a pain, they get stolen and fuel is a hassle. No-other power anywhere near them.

We happen to have a live, unused, 3 phase, 100amp metered supply, which is also connected to a new fuse board right next door to their land.

I am sure they will offer me some money, or to do some work for us, but I have no idea on value on what its worth to them? More than happy to get on with the contractor and so far dialogue has been good.

I presume they need site lighting, site cabins, mains electrics etc.

Any suggestions?

[sherman]

In all seriousness. No idea. Power is going to be expensive this year so could be lucrative for you.

[Louis Balfour]

skilly1 said:

We have 220+ houses being built by a major homebuilder next to our business.

They are just about to start with services etc and the main contractor has been in touch. He was asking if we have any power they can use to run the site as they won't have mains power for a good few months, minimum 6. He said generators are a pain, they get stolen and fuel is a hassle. No-other power anywhere near them.

We happen to have a live, unused, 3 phase, 100amp metered supply, which is also connected to a new fuse board right next door to their land.

I am sure they will offer me some money, or to do some work for us, but I have no idea on value on what its worth to them? More than happy to get on with the contractor and so far dialogue has been good.

I presume they need site lighting, site cabins, mains electrics etc.

Any suggestions?

Ask them to make you an offer.

A few years ago, an American company accidentally used one of our dormant domain names for their business and then marketed that business quite extensively.

They emailed asking how much we would want to direct the domain to them for a few months.

"Make us an offer" we said.

They gave us a lot of money for 3 months. Many times what we would have asked.

[blueg33]

As above. Ask them to tell you. Alternatively, get them to supply a meter, and charge them 20% over the cost of the power to you. That way you won't get bitten by a fixed price when energy prices go up again.

Its something I always leave to my contractors to get on with, so I don't know how much they pay.

[AllyM]

£2k per week + useage at cost.

They should do load calcs, provide test certs and be responsible for maintenance throughout.

[Mr Pointy]

It's worth the same as hiring a genny, or maybe more. Have a look around for generator hire costs & pitch your quote appropriately, although you might have to phone to get a price. I think you're looking at supplying around 60-70kVA from your supply.

[peterperkins]

Sounds like a nice little earner.

65KVA generator hire looks to be about £220 a week + diesel etc..

So you could charge say £200 a week + units used (+20%) or something.

They do all the connection/distribution with qualified sparkies etc.

[boombang]

Note red diesel restrictions come in from 1st April 2022, IIRC they will not be able to use red from then for generators and plant (just farmers, again IIRC).

I would suggest that has a sway in their move away from generators and should give you the ability to get a higher price should you so desire.

[Slackline]

boombang said:

Note red diesel restrictions come in from 1st April 2022, IIRC they will not be able to use red from then for generators and plant (just farmers, again IIRC).

I would suggest that has a sway in their move away from generators and should give you the ability to get a higher price should you so desire.

Plus, they won't want pictures of their shiny new electric diggers being charged from a genny!

[Mandat]

From a purely business perspective, work out what it would cost the contractor to get the required power via a different means, and charge them a bit less.

The contractor should also be doing a cost / benefit comparison on their available options, so making sure that your option is the most efficient, cost effective & hassle free option for them, and they should bit your hand off.

[andyxxx]

I would also ask them to make an offer, based on a one off payment plus they pay for all power they consume for a fixed period.

I guess £25-£30K for six months

[poo at Paul's]

Make sure they’re not running their swimming pool off you……!

[boombang]

Thinking more I'd be putting it something like this.

-Cost of electricity each billing period + a reasonable % for your troubles OR a fixed monthly payment
-They pay for all connections and certifications by qualified individuals
-They pay for all removal and reinstatement back to condition prior to connection by qualified individuals
-They pay for all contractual liabilities on the electricity service (standing charge minimum period, i.e. if they decide to stop but you are still paying standing charge they cover it)
-Break clause with an X month notice after X months (maybe 1m after 6) which does not impact their obligation to remove/reinstate - this could be mutual but at least you want it
-Review of above after X months

Whatever happens you need to protect yourself here in case they lump you paying for something you don't need or you want/need them to stop receiving power.

[Collectingbrass]

Don't compare this with the cost of generators just because they've mentioned the hassle. If you've got power next door they should be able to get a temp builders supply from the local network in 6 weeks, not 6 months. The 6 months will be the time to get the perm supply in for the first release of houses - show homes normally take 22 weeks anyway.

The bloke who asked you either
- wants to save a few quid on the cost of the temp supply
- forgot to order the temp supply and is looking for a quick solution before his boss finds out (Most likely IME, see 1)
- doesn't know what he is talking about

I'd decide whether you want to be neighbourly and as others said, get them to make you an offer. Charging cost plus and putting all the onus on them for a safe installation and reinstatement is the way to go.

(1) I once had a contractor forget to order the site canteen fit out & catering contract in the long term temp office and welfare for a large site. The steel erectors from Belfast staged a dirty protest in the toilets after a Thursday night Guinness and curry session. Cost me £500 cash per man to get it jet washed and cleaned...

[skilly1]

Thanks for the comments, I will see what they come back with and go from there.