Sign in to follow this  
Followers 0
flipper

How much should a general contractor make?

15 posts in this topic

Since we own all the houses we remodel I don't really have experience as a "general contractor".

So, out of curiosity, how much do you think a general contractor should make as "profit" on a $10,000 bathroom remodel or a $25,000 kitchen remodel?

I'm looking forward to the contractors on the forums opinions as well as homeowners who have sub'd out their own remodels and people who have hired people.

flipper

Share this post


Link to post
Share on other sites
Since we own all the houses we remodel I don't really have experience as a "general contractor".

So, out of curiosity, how much do you think a general contractor should make as "profit" on a $10,000 bathroom remodel or a $25,000 kitchen remodel?

I'm looking forward to the contractors on the forums opinions as well as homeowners who have sub'd out their own remodels and people who have hired people.

flipper

Most quotes that I have received that breakout contractor take show about 10% for the gen contractor. Not saying it is right or wrong but that is what I have seen

Share this post


Link to post
Share on other sites
Since we own all the houses we remodel I don't really have experience as a "general contractor".

So, out of curiosity, how much do you think a general contractor should make as "profit" on a $10,000 bathroom remodel or a $25,000 kitchen remodel?

I'm looking forward to the contractors on the forums opinions as well as homeowners who have sub'd out their own remodels and people who have hired people.

flipper

I pay $250 plus 10% of agreed subcontractor costs to the property management company for low end rental rehabs.

Share this post


Link to post
Share on other sites
I see 10% as a fair level of profit.

That's assuming that overhead is not coming out of the profit. If it is, the 10% seems low. Frankly, I want my subs to feel like they are not getting screwed. They work harder if they think it is a fair deal. I'm thinking 20% is more in the ballpark. A plumber friend offered to redo my plumbing for $20 an hour and I told him that sounded too cheap. I offered $250 a day. He did spectacular work, and never complained about coming to do the work. And $32 an hour is STILL way cheaper than a normal plumber would charge.

EDIT: The 20% would be for a guy actually doing the work. For a GC, 10% after overhead is probably not that bad.

Edited by RedScare

Share this post


Link to post
Share on other sites

10% sounds pretty low to me? I would have thought 20%+. 10% barely covers all the gas to get to and from a job site.

Share this post


Link to post
Share on other sites
Net profit.

10% seems fair to me.

Considering the liability he incurs, I would be hesitant to go with a contractor getting only a 10% margin. His main incentive is to cut corners instead of doing a quality job. There's always someone who will do it cheaper. The trick is to find someone to do it right.

Share this post


Link to post
Share on other sites

I think most remodeler's will put 25% - 35% in their quotes. But will normally end up with about half that.

Share this post


Link to post
Share on other sites

OK, as a spin-off/add-on to this question...

On a "cost-plus" job where the GC is just tacking on a % to whatever he or she is paying the subs and paying for the materials, how much % wise do you think is fair?

flipper

Share this post


Link to post
Share on other sites
OK, as a spin-off/add-on to this question...

On a "cost-plus" job where the GC is just tacking on a % to whatever he or she is paying the subs and paying for the materials, how much % wise do you think is fair?

flipper

haha.... I dont do cost plus jobs. Unrelated to the world of home remodeling, I have had very bad experiences with the cost plus model. It is so difficult to keep track of changes (and lord knows there are always change). Its like squeezing a ballon.

Share this post


Link to post
Share on other sites
OK, as a spin-off/add-on to this question...

On a "cost-plus" job where the GC is just tacking on a % to whatever he or she is paying the subs and paying for the materials, how much % wise do you think is fair?

flipper

For remodeling jobs, it should be 12-20%. For new construction, it could be 10-15%. It depends on the soft costs that will be associated with the job, which are dictated by the homeowner. For example, a contractor may add up to 10% for a full time supervisor that is permanently stationed at the job till completion. It's important to note that although the GC is guaranteed money, they will work a lot harder for it. When the homeowner has the ability to make changes as they go, it creates a lot more work for the contractor.

Share this post


Link to post
Share on other sites

Thanks for sharing all these views. General contractors get paid by taking a percentage of the overall cost of the completed project but in most cases, a general contractor will charge between 10 and 20 percent of the total cost of the job. It is important to choose licensed contractors. Home renovation service bergen county NJ depends on the expertise and knowledge that contractors contain.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0