- Apr 27, 2011
- Reaction score
We're getting ready to break ground on a full renovation and struggled with the same GC realities. My wife works in development (and therefore had a decent list of good-to-great GCs whom it would behoove to capture her personal business) and we still found 35-50% overhead as the standard. Luckily one of the better suitors gave us his "friends and family rate," (a flat 25% on top of scope and waived PM fees) but he acted like he was sacrificing his first born to do it.I went out and got quotes for all the subs myself, and I found them all in line with what he quoted me, so it was all his management fees and the like. I just moved forward without him, and saved a fortune.The stats I posted were the first Google result, so true average, and with the vast majority of new construction being spec houses, that's going to heavily weight the numbers in that direction.
I hear you and agree about the pain.
We bought a house with a massive unfinished space, and the contractor we selected came on the architect's recommendation. The quote started out reasonable and in line with what the architect thought, but once he did a more detailed budget, it was up 50%.
I understand that construction has gone crazy in the past few years (and my family has benefitted by way of my wife's gig) but the pricing structures are insane, particularly for projects that aren't all that complex (in our case, one sub -- the carpenter -- is doing 50%+ of the scope). If you have the time, patience and wherewithal, I'd highly recommend being your own GC/finding the subs. Of course that might be easier said than done depending on how stringent your municipality is when it comes to permitting, insurance, etc.