Owner Direct Purchase Savings Calculator

Owner-direct purchase skips markup. This calculator sizes savings.

Material cost

GC markup %

Sales tax %

Admin overhead

Net savings

$243,000

Markup savings

$216,000

Tax savings

$42,000

How the math works

Markup savings = cost × GC markup. Tax savings ≈ cost × tax × 0.5 (avoided on exempt purchases). Net = savings − admin.

ODP on a $1.2M equipment package saves $200-300k typically. The coordination overhead scales with complexity — simple equipment deliveries work well, specialty systems with install dependencies often don't justify the hassle.

How to Use

Enter material cost.
Enter GC markup %.
Enter sales tax rate %.
Enter admin overhead cost.
Read net savings.

Frequently Asked Questions

ODP mechanics?

Owner buys materials directly from supplier (often tax-exempt on certain state structures). GC installs but doesn't mark up materials. Saves 15-30% on marked-up categories. Requires coordination — owner takes delivery, coordinates with sub.

Best categories?

High-cost, easy-to-specify items: HVAC equipment, fixtures, appliances, elevators, flooring, roofing systems. Savings biggest on items with high markup. Low-value items (lumber, drywall) not worth ODP hassle.

Downsides?

Coordination burden (delivery timing, storage, damage claims). Warranty handling more complex (owner has vendor relationship, not GC). Owner takes title risk. Best for sophisticated owners or owner's reps who manage ODP regularly.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.