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Question DetailsAsked on 5/9/2016

going rate for overhead & supervision $50,000 remodel

Door framing new sliders, drywall, redo master bath, garage door, pavers in driveway

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1 Answer


I would not say there is anything remotely like a "going rate". To start with, are you talking a project manager for contractors you are hiring yourself, or a general contractor doing this job with his own employees (hence full company overhead including all the payroll overheads) or totally with subcontractors (so the labor overheads are included in their billings and his overhead is limited to just himself and maybe secretary and a runner or so) - or maybe a combination, in most cases.

Then depends on his company overhead structure - is he fully licensed, bonded, insured, etc or is he flying under the redar illegally; does he have a shop and office and dedicated company vehicles and administrative staff and permanent trade employees, or does he run his business out of his home and personal vehicle and cell phone only as basically a one-man outfit ?

Can run from as low as sometimes 10-20% markup on subs and materials to as high as 100%+ on materials and up to 25-50% on subs, depending on how much time he would be taking on the job relative to the sub billings, how many subs there are, how much work or correction of work he will do himself, what his personal billing rate is, etc. OVerhead and adminstrative costs for a contractor doing the job with his own forces (so has all the labor overheads) would commonly be in the 40-50% or higher range on labor and at least 10-15% on materials purchases and subs. So not really possible to give anything resembling a realistic number not knowing the exact relationships and who is doing what work.

Also on overhead and "supervision" charge - is he responsible for permits and such, getting plans or drawings needed for permits, etc.

If only a project manager - not a contractor at all, so just acting as your agent on the job - commonly aropund $50-100/hour billing rate inclusive for single residential jobs and generally 10-20% of the total project cost, both depending on amount of inspection and frequency of inspections desired, and on whether a licensed architect or engineer or just a technician.

Answered 4 years ago by LCD

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