GC's markup, how much

[Bienes Raices]

I'm planning to use a GC when I find my first house (assuming it needs enough work to require a GC). Is there a rule of thumb for what % markup I should factor in for the GC when estimating the repairs to determine how to make my offer? Thanks.

[J Scott]

It's going to vary by:

- Location (higher costs = higher markup, generally)
- Contractor (good ones are more)
- Market (are GCs looking for work?)
- Negotiation (they'll take as much as they can get)
- Scope of Project (bigger projects can be negotiated to a lower % usually)

Personally, when I used to use a GC, I would pay 12% above the labor cost as his GC fee. He also did a good bit of the work, so he made money there as well. But, he would break down the numbers for me, and if I didn't like them, I could have him use my subs instead.