general contractor charges

[lelson]

What is a "reasonable" profit and overhead surcharge when my general contractor has a sub-contractor do work for him? We're doing a large residential house by "time and materials".

[RicodJour]

You will get answers that are all over the place with an open-ended question like that. Reasonable to whom? A GC's overhead typically runs in the 30-35% range, but depending on the size of their business, efficiency, the type of project, etc. it can vary above or below that. Because a sub is doing a particular aspect of the work, that doesn't mean the GC's overhead on that aspect will be less, it could very well be more. The GC also frequently handles callbacks, and is responsible for the warranty regardless whether the sub is still around or not. Only your GC can tell you what he feels is reasonable.

If you don't trust your contractor, and feel he may gouge you, why would you go any further? Find someone you can trust and work it out.

R

[Phil Scott]

10% is standard... in some areas with some generals 40% is common.

T and M is a contractors favorite way to get a job... if he is good and honest its fair all around... if not you will be screwed to the wall.

if you suspect the latter, be real nice to the guy then seek the best attorney you can find for advice on how to get rid of him cost effectively...that can be done but it can be tricky.

Phil Scott

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[SQLit]

Reasonable? that depends on a plethora of issues. Roofers workman's compensation is higher than a plumber for example.

What did you agree on in the beginning?

[trader4]

"Reasonable? that depends on a plethora of issues. Roofers workman's compensation is higher than a plumber for example. "

And what does that have to do with what a typical margin is for the general contractor?

[Duane Bozarth]

Like much of usenet, absolutely nothing... :)

[Goedjn]

If it's time and materials, then the subcontractor counts as "materials". Why should there be a surcharge?