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Question DetailsAsked on 8/1/2012

What is the standard amount of profit and overhead charged by a GC in Chicago?

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1 Answer

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Hello,

This question runs pretty deep, actually, because every contracing company varies on what makes a job profitable. Basic costs can vary depending on the size of the company and their ability to buy in bulk. The larger the contractor, the better price you will generally get on materials. Labor is competitively priced across the board. The variations will mostly be found in the markup.

Unfortunately, you will not see these costs broken down within an estimate. Nearly every estimate is comprised of a material charge, labor charge and a margin for profit. At retail, about a 25% to 35% markup is typically targeted. When a job is completed and billed, about 12% to about 20% profit margin should have been accomplished to keep the company in business. Please note that margin and markup are 2 different things.

That's an overview on one common pricing model. Since no contractor I know of will share the exact breakdowns of a bid, the best thing a homeowner can do is get multiple bids of identical work and compare.

Remember that the contractor you choose should be the best balance between quality and price.

Source: http://yourdallashandyman.com/handyma...

Answered 8 years ago by philvandermeer

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Hi, Chicago Homeowner.

Once you find some Chicago general contractors on Angie's List, we always suggest getting a detailedestimate from each, that way you can see an apples-to-apples comparison of thework you're requesting done.

Answered 8 years ago by HughV




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