What is a fair fee and how do I arrive at it for a general contractor?We are planning an extensive remodel on a home of 3300 sq.ft. I estimate that total materials and labor will be between $350,000 and $400,000.I would prefer to just pay a flat fee and pay it installments over the job duration.What do you think?
I have a bid from a GC of 18% on all materials and labor plus $65/hour for supervision and he estimates 3 hours per day and 5 months for the job.
The job location is in the Southern Calif. desert
Hello, my name is XXXX, XXXXXX for coming to JustAnswer. contractor/Builder fees for new construction is commonly around 15% Typical remodeling is 35-50% depending on complexity and difficulty. For a remodel of your magnitude it also would depend on the age of the home. If it was built before 1950 or so, there are likely many hidden surprises which would affect pricing.
The best method to control costs and obtain fair profit mark ups from your contractor is to: 1.) Spend a little time and a little money by meeting with an architect or engineer to make a drawing of the work areas that will involved. This will not be a huge cost since it's an existing structure full blown blue prints are not needed. 2.) Create a "scope of work" list itemizing specifically what each phase of the work is to entail. Include in this list type of materials and products like appliances, finish flooring, plumbing and fixtures and light fixtures. Some of these product choices may say "provided by owner" or just include an allowance to be included in the contractor's bid. 3.) Once you have this scope of work you should then contact at least 3 qualified home improvement contractors for bids. The scope of work will keep all bids "apples for apples." 4.) Only select a contractor or company that is willing to provide references of previous jobs that were in the ball park of your project. You must contact some of references. 5.) Do not select any contractor or company that requires "upfront money." 6.) Once you choose the contractor make sure the contract includes language specifying the payment draws as work progresses. Dennis (cut2it)