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
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.
| Step | Example 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 price | Customer 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?
How do I price a kitchen remodel?
Should GCs charge hourly?
What margin should a remodeling GC target?
How do allowances work?
Do homeowners see the same remodel costs?
When is a paid preconstruction fee appropriate?
How do I compete with handyman lump sums?
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