How Much Do General Contracting Services Cost?
If you are planning to get a home renovation done, you need to know how much general contracting services will cost. You can either hire a general contractor or go without their services. Both have their own pros and cons. A general contractor will have many responsibilities that require them to work closely with you and your architect to meet your needs. They will need to coordinate subcontractors, check their insurance, and meet budget constraints. They also anticipate problems with other contractors and unforeseen conditions. They will also need to schedule inspections with your local building department and supervise work throughout.
The cost of general contracting services can vary wildly. Some contractors try to earn 30 percent of the bid price, while others try to charge an hourly rate and then add their fees to the final cost. General contractors usually mark up materials according to industry standards. They also pay for insurance and workers’ compensation, and must cover employee salaries, overhead, and taxes. Generally speaking, an average cost for a general contracting job will be between 20% and 30%.
In addition to markups, general contractors also mark up the costs of materials and labor. This allows them to make a reasonable profit. However, it may be difficult to determine exactly how much a particular service will cost. Some contractors markup individual labor and materials by 10 to 45 percent. Depending on local economic conditions, these markups can vary wildly. Regardless of the method chosen, you should consider the cost of general contracting services.
Many GCs will outline a payment schedule based on the work schedule. Typically, a down payment is required to get the project started. Afterward, the rest of the money is due upon delivery of the project. Some GCs may request payment upfront, but these contractors usually are independent contractors and take on significant risks. It’s always best to check the contract before signing anything. The amount of money owed to the contractor will depend on the size of the project.
The cost of general contracting services depends on the size of the construction project. It’s not uncommon to pay thousands of dollars for the same service. However, in many cases, you might get more value for your money by hiring a more experienced contractor. A more experienced contractor will have been in the business for a long time and have a larger pool of subcontractors. They’ll have the expertise to know which subcontractors do the best work and which ones will not.
While a general contractor will cost you more, you’ll be able to get a higher-quality project as a result of their experience. Make sure to check their credentials and certifications, and look at customer reviews. If possible, try to find a general contractor with open slots in the future. There are many contractors who offer discounts for a longer time period, but if you need a job done right away, you’ll have to pay extra for the contractor with the highest availability.