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True Trade Path

How much should a general contractor charge?

Residential general contractors typically bill $50–$95 per hour for time-and-materials oversight, or charge 15–25% contractor fee on top of subcontractor and material costs on fixed-price remodels — with whole-home and kitchen projects commonly quoted $150–$250/sq ft finished space built from burdened PM labor, overhead, and 12–18% net margin.

Reviewed
National remodel benchmarks, reviewed March 2026
Build your rate from burden and overhead, not from wage alone. Use the calculator and template below, and compare to what we publish to homeowners for the same work.

How to use this guide

General contracting is two businesses in one: production coordination and risk ownership. This guide separates hourly PM rates from markup-on-subs models so you can see whether your fee covers lien exposure, schedule slip, and warranty callbacks — not just truck rolls and phone calls.

Fixed-price remodels should trace to a Schedule of Values or trade breakdown, allowances with reconciliation rules, and explicit exclusions for structural surprises. T&M is appropriate for discovery-heavy phases if caps and reporting rhythm are written into the agreement.

Homeowners compare your proposal to our kitchen and bath remodel cost guides before the first walkthrough. Align scope language — permits, protection, cleanup, allowance reconciliation — so price conversations are about approach, not sticker shock on a one-line bid.

Fee vs markup: pick one story

Some GCs publish a 15–20% fee on top of verified sub invoices and material receipts; others embed margin in lump-sum trade numbers. Both work if internal math hits the same net margin target and sales can explain the model without apologizing.

Never stack undisclosed fee on top of inflated sub quotes — customers and subs both notice. Transparency on what you coordinate (permits, inspections, protection, punch) justifies the fee better than opacity.

Rate build-up

From wage to billable rate

PM and superintendent labor is burdened like any field trade, then overhead for preconstruction, insurance, and bonding is allocated across active jobs. The fee or markup layer must cover warranty labor and slow months — not only the hours you bill this month.

StepExample range
Base wage (PM / lead carpenter)$32–$48/hr
Labor burden× 1.35–1.50
Loaded PM labor$43–$72/hr
Overhead (office, insurance, precon)+ 30–42% of loaded labor
Profit / risk reserve+ 12–18% net target on job
Billable PM rate or embedded fee$55–$95/hr T&M; or 15–25% on cost

Typical service rates by region

High-cost metros push both sub rates and GC overhead; rural jobs may show lower $/sf but longer drive and harder sub availability. Compare your all-in fee to three bids using the same allowance assumptions, not just the GC line.

Lower-cost markets

Labor: $45–$70/hr PM

Trip / diagnostic: Precon visit $150–$350

National mid

Labor: $60–$85/hr PM

Trip / diagnostic: Design intake $250–$500

Major metros

Labor: $75–$110/hr PM

Trip / diagnostic: Paid discovery common on $75k+

Worked example

Kitchen remodel (~200 sq ft, mid finishes, coordinated trades)

The example is a mid-scope kitchen remodel with coordinated trades — not a design-build allowance free-for-all. Structural, layout changes, and premium finishes move hours and sub quotes; those belong in allowances or change orders, not in a verbal “about eighty grand.”

Subcontractor cost (demo, MEP, cabinets, counters, tile, paint)$62,000
GC material purchases & logistics$4,200
PM / super labor (120 hrs loaded)$9,600
Overhead allocation (32%)$3,072
GC fee (18% on direct cost)$13,670
Contingency consumed (0% in example)$0
Indicative customer priceCustomer price ≈ $92,542 (~$463/sq ft — allowances and layout changes move this ±25%)

Price ranges homeowners compare

Per-square-foot bands help sanity-check proposals against homeowner expectations. Job-cost every remodel from trade takeoffs; these ranges are scripting aids, not bid software.

  • Bathroom remodel (5×8, mid) — $18,000–$35,000
  • Kitchen remodel (200 sq ft) — $45,000–$95,000
  • Basement finish (800 sq ft) — $40,000–$75,000
  • Whole-home remodel (per sq ft) — $150–$250/sf
  • GC hourly / PM time — $55–$95/hr

Where margin disappears

GC margin usually dies on unpaid preconstruction, sub default without backup, allowance drift without written reconciliation, and fixed prices signed before scope is defined.

  • Fixed price before scope and selections — Allowance overruns become margin gifts or hostile change orders.
  • Fee quoted without lien and warranty reserve — One failed sub or callback quarter erases a year of fees.
  • Underpricing preconstruction — Plans, permits, and sub buyout hours are real — bill or absorb deliberately.

Quotes, minimums, and payment

Minimums & trip charges

Publish a minimum mobilization or preconstruction fee for small jobs — commonly $1,500–$3,500 — when coordination overhead dominates. Walk away from fixed-price work below your documented floor; busy crews on bad jobs cost more than idle days.

Markup vs margin

An 18% fee on cost is not the same as 18% margin on sell price. Train sales and PMs to use one vocabulary — fee on cost, margin on price, or markup on subs — so internal job costing matches the customer-facing proposal.

Exclusions & change orders

Structural engineering, asbestos/lead, mold remediation, utility upgrades beyond plan, and owner-supplied materials without warranty transfer belong in exclusions or allowances with reconciliation. Hidden conditions get change orders with photos before demo continues.

Payment schedule

Use deposit + progress draws tied to inspection-ready milestones in the Schedule of Values. Match state deposit caps, document lien waivers per your attorney’s template, and never get ahead on billing versus completed, inspectable work.

Presenting the price

Lead with scope phases, allowance tables, and what you coordinate — not a single number. Show optional tiers for cabinets, counters, and fixtures so the base bid compares fairly and upgrades are chosen, not sprung at order time.

Use these next

FAQ

What percentage do general contractors charge?
Residential GC fees of 15–25% on top of documented sub and material cost are common, or equivalent margin embedded in lump-sum trade lines.
How do I price a kitchen remodel?
Build from trade takeoffs and sub quotes, add PM hours, overhead, fee, and contingency. Compare to homeowner kitchen remodel cost guides for expectation alignment.
Should GCs charge hourly?
T&M with caps works for discovery and owner-direct projects; fixed price needs defined scope and allowances.
What margin should a remodeling GC target?
12–18% net after owner compensation is a healthy target on fixed-price work; thin years need reserves.
How do allowances work?
Set selection deadlines, reconciliation rules, and who keeps savings — write it in the proposal.
Do homeowners see the same remodel costs?
Yes — our kitchen and bath cost guides publish ranges; explain premium with scope, not adjectives.
When is a paid preconstruction fee appropriate?
On layout changes, structural questions, or design-build intake before you commit a fixed price.
How do I compete with handyman lump sums?
Sell permits, insurance, trade coordination, and warranty — scope comparison, not hourly rate alone.

Methodology

Benchmarks reference BLS construction manager wages, RSMeans-style remodel bands, and our general contractor pricing calculator. Local sub markets move faster than national medians — rebuild fees when carpenter and MEP rates shift in your county.

  • BLS — construction managers
  • True Trade Path general contractor pricing calculator