how much is a typical/fair fee for a general contractor to charge?
Hello, my parents are remodeling their home and I was wondering what kind of fee is the industry standard for the general contractor of the project to charge? I believe it's typically set up as Cost Of Materials + Percentage Fee Of Contractor = Total Project Cost. My question is what is the typical percentage fee of the general contractor for a major home remodel project (e.g. 10%, 15%, etc)? The project is anticipated to go around 6 months and is adding about 1200 square feet to the home (included a new a/c, ductwork, fireplaces, roof, etc) if that info makes any difference. Thanks!
Green Acres was a TV show in the late 50's and early 60's. There was a savy Indian trader on that show who charged different prices to different people. He never revealed his formula for setting his price but when he was questioned about the price he woud simply say, "Whatever the traffic will bear".
I have done considerable remodeling in my past and the old Indian's philosophy seemed to work very well. There are several points to consider in pricing this type of work:
1. There probably will not be any competition; no one else bidding
2. The amount of demolition
3. The hidden work that will have to be corrected
4. How much does the customer expect to pay? And how much do they have?
5. As the customer, be sure the work is all spelled out and detailed so you get what you wanted or are paying for.
One of our recent posts was about a contractor who bid to install an oak staricase and the customer ended up with pine treads and OSB risers. Be sure to hold at least 1/2 of the money until you are satisfied and your specifications have been met.
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