CONTRACTOR RATES

Labor typically consumes 40-50% of your total renovation budget. Failing to scrutinize these rates leads directly to budget failure.

The Markup Reality

Don't pay for inefficiency. General Contractors (GCs) typically charge a 15-25% markup on top of subcontractor labor and materials. This is their overhead and profit (O&P). If you don't track the line items, you're bleeding capital without realizing what you are actually funding.

Contract Structures

Fixed Price (Stipulated Sum): The safest route for the homeowner if the scope of work is rigidly defined. Transfers cost overrun risk to the GC.

Time & Materials (T&M): A bottomless pit unless capped with a Guaranteed Maximum Price (GMP). Only use this for exploratory work (e.g., demolition phase).