What Percentage Does a General Contractor Get Paid of Overall Job Cost?

If you’re wondering how much general contractors get paid, it really depends on the complexity of the project and the scope of work. At Multi-M Contracting, you always get a fair price and worry-free leadership from our licensed, knowledgeable general contractors. With locations in Tukwila, Washington, or Herriman, UT, we can serve local communities more affordably than the competition.

How General Contractors Get Paid

General contractors (GC) charge between 10% and 25% of the total construction costs for their services. This type of fee is called “cost-plus.” That just means that general contractors won’t charge you by the hour. For smaller jobs, budget 15% of the total construction costs. For large, complex projects, general contractors’ pay runs closer to 25% of the total project cost.

When you get a quote from a general contractor, it will typically include the percentage for their management services. The estimate should include the costs for labor, materials, and supplies. Your GC forms a linchpin of your construction project. Therefore, finding a good one is well worth your time.

Never Pay a GC the Total Cost Up Front!

Make sure that you understand how much and how often the GC expects to get paid so that you can build that into your budget. Many will ask for an upfront deposit and collect the rest when the work has been completed. Others will bill you in phases that they lay out when they present you with a detailed project plan. You should never have to pay the entire cost upfront because doing so costs you any leverage that you may have.

Examples of What You Might Pay a General Contractor

The general contractor’s services fall under labor charges, and you can expect them to vary depending on the scope of work. Here are some examples of what you can expect to pay for different types of jobs, assuming a 10% to 20% range for the general contractor.

If you build a home for $290,000, you could pay between $29,000 and $50,000 for the general contractor. On the other hand, you pay much less for remodeling a bathroom or kitchen. For example, a $46,000 kitchen remodel will cost you between $4,600 and $9,200 for a general contractor, while a $10,000 bathroom remodel may include $1,000 to $2000 in general contractor fees.

It’s a good idea to pad your estimates for all project costs by 10% to ensure that you have the funding you need to complete the work.