Investor · Los Angeles, CA · Member since 2020 · 14 posts · 13 votes
Hey BP team,
Currently doing a remodel of a property I own in San Mateo but the contractor just sent an overall budget for everything but didn't break down labor vs materials. Just wondering if you're aware of some standards "rule of thumb" for what an overall construction budget should be for Labor vs Materials as a percentage.
For example: Kitchen Remodel, bathrooms, sand floors, recessed lighting, etc cost = $120k (what percent of that should be materials such as cabinets, fixtures, recessed lighting, etc)
@Derrick StClair, when it comes to rooms with finishes that can be expensive such as a kitchen that could include custom cabinets, granite counters, tile floors, etc it would not be feasible to have a reliable rule of thumb for materials versus labor %.
What I would focus on is what is included in the quote. Often times, fixtures and finish materials are not included because the owner may wish to choose something cheap or expensive and the contractor has no way of bidding without knowing those choices.
So, for example a bathroom remodel quote might include everything except the fixtures and flooring materials because you need to choose those and the price of those items could vary a lot based on the choice.
So, I would clearly define the scope of work you expect from the contractor and look carefully at what is or isn't included in the quote.