{"id":3727,"date":"2023-05-03T22:42:46","date_gmt":"2023-05-04T03:42:46","guid":{"rendered":"https:\/\/www.northone.com\/blog\/?p=3727"},"modified":"2025-02-20T16:21:21","modified_gmt":"2025-02-20T21:21:21","slug":"general-contractor-pricing-guide","status":"publish","type":"post","link":"https:\/\/www.northone.com\/blog\/contracting\/general-contractor-pricing-guide","title":{"rendered":"Full General Contractor Pricing Guide for 2025"},"content":{"rendered":"\n<p>General contractors face many day-to-day challenges. From cash flow problems to labor shortages, low-quality subcontractors to sudden changes in scope of work, general contractors are vulnerable to a wide variety of added costs that can creep into their already-tight profit margins. That\u2019s why pricing your services right from the start is so important, and if you\u2019re looking for comprehensive general contractor pricing guides, you\u2019ve come to the right place. Here\u2019s how to price your general contracting services.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_should_a_general_contractor_charge\"><\/span><strong>What should a general contractor charge?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While there\u2019s no specific rule outlining <a href=\"https:\/\/www.homeadvisor.com\/cost\/additions-and-remodels\/general-contractor-rates\/\">how much a general contractor should charge for their services<\/a>, on average, a general contractor\u2019s fee is somewhere between 10 and 20% of the total cost of a job. In the case of general contractors whose services are in high demand, that figure can be even higher. Whether you charge a flat fee or not, you should still calculate it as a percentage to ensure you\u2019re making a reasonable profit for the work you\u2019re doing.<\/p>\n\n\n\n<p>Here are some of the general considerations you should prioritize as you craft a bid for your general contractor services:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Project type and size:<\/strong> Every project is different, which means the rates you charge will often vary from project to project. Of course, some projects are more material, labor, and cost-intensive than others, and your rates should reflect the costs, workload, and intensity you expect from a project.<\/li>\n\n\n\n<li><strong>Location:<\/strong> The area where you furnish your services plays a big part in how you price them. You should determine the average cost of a contractor in your city and then calculate the cost of materials in your area.<\/li>\n\n\n\n<li><strong>Experience:<\/strong> Experienced, in-demand contractors typically charge a higher markup for their services. If you\u2019re established and have developed a network of business contacts\u2014including a broad pool of subcontractors and laborers\u2014consider charging more for your services than the local average.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Profitable_pricing_models_for_general_contractors\"><\/span><strong>Profitable pricing models for general contractors<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Many contractors have their own system for pricing that allows them to stay competitive while still making a great profit. While pricing details vary from contractor to contractor, general pricing strategies follow some tried-and-true methods.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Time_and_materials\"><\/span><strong>Time and materials<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Time and materials (or T&amp;M) contracts are ideal for projects that may not have a well-defined scope, but they\u2019re also an ideal pricing method for small-scale projects that follow a strict timeline. These contracts entitle the contractor to receive reimbursements for the costs of materials, along with payments for labor, whether daily or by the hour.<\/p>\n\n\n\n<p>General contractors must include aggregate costs into a T&amp;M contract, but they should be itemized as direct, indirect, markup, or overhead costs. While it can be time-consuming to monitor the cost of materials, there are many benefits to this pricing model. Not only is your business covered in case of changes in work scope or unexpected delays\u2014which almost always happen\u2014but they enable hassle-free negotiations as you and your client settle on an hourly rate.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fixed_price\"><\/span><strong>Fixed price<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A fixed price, also called a flat rate or lump sum model, provides the client with a clear-cut price they\u2019ll pay for general contractor services from the start. You\u2019ll furnish a quote with a fixed fee for all construction services within the scope of work.<\/p>\n\n\n\n<p>This pricing method makes sense to your clients, but it can be difficult to estimate the true cost of a project. Most contractors employ this method only for projects that have a well-defined scope, since the contractor bears all the risk.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cost_plus\"><\/span><strong>Cost plus<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you suspect a project\u2019s actual costs may turn out to be much less than you anticipated earlier, a <a href=\"https:\/\/en.wikipedia.org\/wiki\/Cost-plus_pricing\">cost-plus<\/a> or cost-reimbursement price model might be the best option for your general contracting business. The client agrees to pay the general contractor for total project costs, plus an agreed-upon amount for profit, which is usually calculated as a percentage of the total project cost.<\/p>\n\n\n\n<p>Contractors should provide proof of all direct and indirect costs when using this pricing model. This model is favorable for contractors since the client bears all the risk\u2014but that also means that the client is often more heavily involved in the project\u2019s administration.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Unit_pricing\"><\/span><strong>Unit pricing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If your services are in high demand\u2014or if there\u2019s some uncertainty about the scope of work of a project at the start\u2014consider a unit pricing model for your general contractor services. Of all the general contractor pricing guides, this model is one of the most advantageous for the contractor, since the client bears the maximum risk. By charging for independent tasks, contractors ensure they\u2019re paid fairly for their services, but the exact cost of the project isn\u2019t known until completion.<\/p>\n\n\n\n<p>The unit pricing model splits entire projects into several individual units. By itemizing the estimates as the project continues, contractors enjoy better flexibility when it comes to managing differences between actual and planned work. Plus, contractors have some wiggle room, since inaccuracies that often occur during initial bids can be amended at any point of the project.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Getting_down_to_the_details\"><\/span><strong>Getting down to the details<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It\u2019s not enough for contractors to follow a rigid pricing model and expect to see a healthy profit for their work. By looking closely at the details of a project and considering any additional items or labor you\u2019ll have to cover, you\u2019ll craft a winning estimate that accounts for variables like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Operational costs:<\/strong> There are several operational and project support costs that a general contractor must shoulder. It\u2019s important to build costs like legal fees, rent and utilities, permits and land acquisition, taxes and insurance, and even the cost of job site offices into your estimate.<\/li>\n\n\n\n<li><strong>Subcontractor costs:<\/strong> Most general contractors don\u2019t go it alone\u2014they work with a team of trusted subcontractors to take on specific aspects of a project. Ensure you\u2019re outsourcing work to the people with the best rates by comparing quotes. Often, general contractors find it\u2019s better to find a subcontractor who provides a clear estimate rather than accept a cost-plus bid.<\/li>\n\n\n\n<li><strong>Cleanup:<\/strong> Construction projects of all sizes and scope generate tons of waste. Even the construction of an average-sized home can create several tons of waste materials and trash. Rough cleaning and final cleaning are often covered by the general contractor, so make sure you\u2019re building those costs into your estimate.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Find_the_pricing_solution_that_works_for_you\"><\/span><strong>Find the pricing solution that works for you<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It can be challenging for general contractors\u2014even those who\u2019ve been in the business for decades\u2014to accurately price their services. There are so many factors at play, which means pricing can always be hit or miss. Calculating an appropriate price not only saves you headaches as you complete projects, but it also raises your profit margin. It also keeps your clients happy, giving them peace of mind that they\u2019re not being overcharged for the work you\u2019re doing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_word_about_best_practices_when_charging_for_estimates\"><\/span><strong>A word about best practices when charging for estimates<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A general contractor\u2019s time is valuable, and crafting a well-researched, thoughtful estimate can be time consuming. As a general contractor, you should be paid for your time\u2014even if your services aren\u2019t retained in the end.<\/p>\n\n\n\n<p>It\u2019s not uncommon for general contractors to charge up to $1,000 for an estimate, depending on their reputation and the scope of your project. While some contractors offer free estimates on smaller jobs like kitchen or bathroom renovations, most charge for estimates on larger projects.<\/p>\n\n\n\n<p>For example, a pre-construction planning consultation for a residential home can cost up to $1,000. You can sweeten the deal for your customers and make them more inclined to invest in an estimate by offering to apply the consultation costs toward the overall project costs should they choose to retain your services.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_its_time_to_get_paid_for_your_services_turn_to_North_One\"><\/span><strong>When it\u2019s time to get paid for your services, turn to North One<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Without a competitive yet fair pricing strategy, contractors can under- or overcharge clients, neither of which is good. Fairly pricing projects helps you make a profit while still providing value to your clients\u2014the kind of value that leads to happy customers, repeat business, and positive word of mouth.<\/p>\n\n\n\n<p>Pricing projects using the general contractor pricing guides described above is just the start of making a profit for your services. You also need to choose the right banking partner who can make it seamless and easy to receive payment from your clients. <a href=\"https:\/\/www.northone.com\/business-account\">North One<\/a> is the ideal banking partner for your general contractor business. Our business banking solutions are tailored to the needs of your operation, streamlining one of the hardest parts of running a business: keeping track of your finances. Contact our helpful team today to learn more.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>General contractors face many day-to-day challenges. From cash flow problems to labor shortages, low-quality subcontractors to sudden changes in scope of work, general contractors are vulnerable to a wide variety&#8230;<\/p>\n","protected":false},"author":19,"featured_media":3728,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[272],"tags":[],"class_list":["post-3727","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-contracting"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Full General Contractor Pricing Guide for 2025 - NorthOne<\/title>\n<meta name=\"description\" content=\"Learn how to best price your contracting services and the different pricing models in this general contractor pricing guide.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.northone.com\/blog\/contracting\/general-contractor-pricing-guide\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Full General Contractor Pricing Guide for 2025 - NorthOne\" \/>\n<meta property=\"og:description\" content=\"Learn how to best price your contracting services and the different pricing models in this general contractor pricing guide.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.northone.com\/blog\/contracting\/general-contractor-pricing-guide\" \/>\n<meta property=\"og:site_name\" content=\"North One Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/northonebanking\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-04T03:42:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-02-20T21:21:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.northone.com\/blog\/wp-content\/uploads\/2023\/05\/Full-General-Contractor-Pricing-Guide-for-2023.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"863\" \/>\n\t<meta property=\"og:image:height\" content=\"558\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nicolas Straut\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@NorthOneApp\" \/>\n<meta name=\"twitter:site\" content=\"@NorthOneApp\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nicolas Straut\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/contracting\\\/general-contractor-pricing-guide#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/contracting\\\/general-contractor-pricing-guide\"},\"author\":{\"name\":\"Nicolas Straut\",\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/#\\\/schema\\\/person\\\/e979aee57bd4800a3711aefcb360c51b\"},\"headline\":\"Full General Contractor Pricing Guide for 2025\",\"datePublished\":\"2023-05-04T03:42:46+00:00\",\"dateModified\":\"2025-02-20T21:21:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/contracting\\\/general-contractor-pricing-guide\"},\"wordCount\":1456,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/contracting\\\/general-contractor-pricing-guide#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/05\\\/Full-General-Contractor-Pricing-Guide-for-2023.jpg\",\"articleSection\":[\"Contracting\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.northone.com\\\/blog\\\/contracting\\\/general-contractor-pricing-guide#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/contracting\\\/general-contractor-pricing-guide\",\"url\":\"https:\\\/\\\/www.northone.com\\\/blog\\\/contracting\\\/general-contractor-pricing-guide\",\"name\":\"Full General Contractor Pricing Guide for 2025 - 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