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On average, what is a residential General Contactors fee/percent?

Posted on 1/6/17 at 9:57 am
Posted by SippyCup
Gulf Coast
Member since Sep 2008
6147 posts
Posted on 1/6/17 at 9:57 am
I know this is similar to asking whats the cost to build a house (impossible to accurately give) but its been a few years since we built ours and the quote my brother just received seems a bit high.

He is doing cost plus but either way, all GC have a percentage built in. Ours was 8%, but he was just quoted 17%.

Posted by baldona
Florida
Member since Feb 2016
20543 posts
Posted on 1/6/17 at 10:02 am to
A lot of factors to consider. Spec home or custom? How much of a pita is your brother? How much does the builder need work/ how good is he? Location compared to builders normal work area? Etc.

Also, if in Baton Rouge or close I gotta feel like a lot of builders are still very busy.
Posted by notsince98
KC, MO
Member since Oct 2012
18087 posts
Posted on 1/6/17 at 10:32 am to
probably 15%+
Posted by Libertariantiger
Member since Nov 2012
981 posts
Posted on 1/6/17 at 10:35 am to
I believe people should do hard bids only with solid agreements with builders. Why would it be in your best interest to pay percent. So one instance, counters, you can absolutely spend $3k or $15k on counters based on the rarity of stone. But you pay the contractor 5x more for that? Crazy. Have him get 3 hard bids and if he isn't sure of finishes, have the 3 use the same allowances.
Posted by VABuckeye
Naples, FL
Member since Dec 2007
35622 posts
Posted on 1/6/17 at 10:43 am to
Buyer or sellers market where he is? If there is tons of business to be had the contractor is going to up his margin. Supply and demand.

ETA: I look for a 40% margin after labor and materials are paid in my business. It sounds like a lot but it isn't when you start weighing in the other costs of running a business.
This post was edited on 1/6/17 at 10:45 am
Posted by Maniac979
The Great State of Texas
Member since Jan 2012
1904 posts
Posted on 1/6/17 at 11:43 am to
What did the 8% cover?
What does the 17% cover?
Example of one of an extensive list items that need to be determined...
Is the contractor's insurance coverage included in the cost of work or his fee? How is the insurance allocated if it is part of the work and he has multiple projects?
Posted by theCrusher
Slidell
Member since Nov 2007
1143 posts
Posted on 1/6/17 at 2:37 pm to
for good work my experience has been around 20% (10% Margin,10% overhead). I've hired folks for far less and the job was not done well.
Posted by Mr.Perfect
Louisiana
Member since Mar 2013
17438 posts
Posted on 1/6/17 at 4:00 pm to
In the cost + Does cost really include everything?
Posted by ItNeverRains
37069
Member since Oct 2007
25612 posts
Posted on 1/7/17 at 5:13 am to
I work in a pretty high end market (750k and up). Most guys do a flat 75k-100k over CTB. I've heard the 10 & 10 model for lower end builds as well.
This post was edited on 1/7/17 at 5:16 am
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