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Question DetailsAsked on 11/7/2011

What's average percentage pay for general contractor on a remodel in Los Angeles?

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1 Answer


If it is for residential, the percentage is typically higher than for commercial. In residential projects, the GC's percent is not often disclosed.

Typically, your contractor needs to cover his overhead, which includes insurance, bonds, salaries, equipment costs / wear and tear, etc. Then they will add their profit. The true answer to yoru question is "Why do you care?"

To ensure you are getting a fair price, bid your project to several general contractors who are experienced with projects similar to yours.

You also are advised to work with a 3rd party project manager who can oversee the work, confirm the permits and review the requests for payments to ensure the work billed equals the work completed, etc. Licensed architects often will perform this service. They will be able to advise you if you should negotiate a smaller percentage, as well as if the work quality is in line with industry standards, etc.

What precentage the GC takes is much less important than how well respected his work is, how experienced he is with your specific type of project and the overall value of the project. A good GC will have ways to reduce your project costs through labor, materials and timing, thus will be worth a higher percentage pay than an average GC.

Good luck.

Answered 8 years ago by Kenny Johnson

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