How much does a general contractor cost?
A general contractor often charges 10% - 20% of construction costs for larger projects, or about $50 - $150 per hour for smaller consulting, coordination, or repair work.
The fee pays for coordination, scheduling, subcontractor management, permit handling, inspections, change-order control, problem solving, and accountability. It is usually most valuable when multiple trades or permits are involved.
General contractor cost by fee structure
Percentage fee
10% - 20% of constructionHow to tellLarge remodel, addition, basement finish, ADU, or multi-trade project
The fixAsk what base cost the percentage applies to and whether overhead/profit are separated
Fixed project fee
Varies by scopeHow to tellDefined scope, plans, allowances, schedule, and subcontractor package
The fixCompare inclusions, exclusions, allowances, and change-order rules
Hourly or daily rate
$50 - $150/hrHow to tellConsulting, small repairs, punch-list coordination, or early feasibility help
The fixSet a time cap and deliverables before work begins
Cost-plus contract
Cost + agreed fee/markupHow to tellOpen-ended remodel where actual labor/material costs plus contractor fee are billed
The fixRequire transparent invoices, markup rules, approval thresholds, and reporting cadence
Design-build or preconstruction package
$1,000 - $10,000+How to tellYou need budgeting, scope development, value engineering, and trade pricing before construction
The fixClarify whether preconstruction fees credit toward the build contract
Before hiring a general contractor
- Define the project enough to know which trades, permits, rooms, and materials are involved.
- Ask whether the contractor is pricing fixed bid, cost-plus, percentage fee, hourly, or design-build.
- Request proof of license/registration where required, insurance, recent references, and sample change-order language.
- Compare payment schedule, allowances, exclusions, cleanup, warranty, lien releases, and who communicates with inspectors.
Unlock the hiring checklist
Use this before you call a general contractor, so you know what to ask and what to avoid.
Call a pro when…
- Multiple trades must be scheduled in the right order
- Permits, inspections, or code corrections are part of the work
- You are opening walls or changing structure, plumbing, electrical, or HVAC
- You need one accountable person for subcontractors and change orders
- The project is too large to manage around your own job and daily life
Repair or replace?
Hiring trades directly can work for small, isolated jobs. A general contractor becomes more useful when one delay or mistake can affect several trades, permits, inspections, materials, and payment milestones.
Need a cleaner scope before you call around?
Use the contractors checklist to compare the same work, questions, cleanup, and warranty before choosing a local company.
Related questions
Is a general contractor markup bad?
No, not by itself. The question is whether the fee is transparent and whether the contractor is actually managing schedule, quality, permits, subcontractors, and risk.
Can I act as my own general contractor?
Sometimes, but you take on scheduling, permits, trade coordination, quality control, insurance risk, payment disputes, and rework. It is easier on small projects than on multi-trade remodels.
What should I ask before signing?
Ask what is included, what is excluded, how allowances work, how change orders are approved, how payments are tied to milestones, who pulls permits, and what warranty applies.