General Contractors take

5 Replies

So I received a quote on a property that I was considering purchasing. (I’m no longer interested in it since the numbers don’t add up). I had the GC look at it and said it was a project that can cost me around 150k. I was just wondering how much of that is the GC’s take. Meaning, how much would I save if I subcontract everyone myself.

I would think 10-25% is typical.  Remember, GCs get better pricing from the subcontractors b/c of all the business they are giving them.  They are also making about 5-15% on the materials.  

Realistically you might not save anything. Here's why a good general contractor will have subs that work for them all the time and the subs give better prices. A general contractor knows how to stage a job to prevent overlap of trades. Also a good gc knows more about the total scope of a job and what's involved to make things work right. Lastly paper work and inspections, a GC should know codes and how to fill out permits deal with logistical end of things. A GC would be able to meet inspectors and debate any inspection failures much better. 

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General contractor markup is 20-25% for small projects like that and 10-20% on larger projects over a million. 

Net to the owner is generally 7-10% after overhead.