Standard General Contractor Fee Percentage
General contractor management fees generally total 10 to 20% of the project cost. The rate can get as high as 25% depending on the size of the project.
The fees are calculated from a markup on materials, subcontractor labor and the total price of the job. The GC packages their fee in with all services for one total price. They pay on your behalf for services, subcontractors and materials.
Contractors price their work as a markup on various services and materials in order to cover factors like:
- Labor and workers’ compensation
- General liability and other insurances
- Overhead for staff, office and operations
Commercial general contractor fees can be higher than those for residential construction depending on factors that impact overhead —