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Old 02-08-2011, 06:13 PM   #1
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General Contractor Fees On Owner Out of Pocket Expenses


I have a GC bidding on a major remodel and he is asking for 15% on the total job including the cabinets, granite, lighting and plumbing fixtures which i am paying for out of pocket.

Should he get 15% on these "supplied by owner" items. For example, the kitchen cabinets are quoted installed by the cabinet firm so the GC doesn't do anything but oversee the installation. Is that worth 15%?

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Old 02-08-2011, 06:21 PM   #2
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General Contractor Fees On Owner Out of Pocket Expenses


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the GC doesn't do anything but oversee the installation.
so he's supposed to do that for free?

If part of his responsibility and liability is to oversee the cabinet installation, then he is due a fee for doing that. If he has no responsibility or liability for any part of the cabinets, then he deserves nothing concerning the cabinets.

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Old 02-08-2011, 06:25 PM   #3
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General Contractor Fees On Owner Out of Pocket Expenses


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Originally Posted by oakman View Post
I have a GC bidding on a major remodel and he is asking for 15% on the total job including the cabinets, granite, lighting and plumbing fixtures which i am paying for out of pocket.

Should he get 15% on these "supplied by owner" items. For example, the kitchen cabinets are quoted installed by the cabinet firm so the GC doesn't do anything but oversee the installation. Is that worth 15%?
It's worth something. What it's worth is between you and him (and on the contract). The amount should reflect his liability. Who is responsible ultimately, like nap mentioned.

Someone that has the best-interest in the project running smoothly should oversee things and make sure there are no issues with installation/co-ordination, the right stuff is being installed in the right place, etc.

If any issues come up during installation someone needs to be there to handle it. Framing, or utilities, or anything needs adjusted, someone can get it looked after right away, instead of the installers waiting, or rescheduling or any sort of thing that comes up.

Last edited by fungku; 02-08-2011 at 06:27 PM.
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Old 02-08-2011, 07:04 PM   #4
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General Contractor Fees On Owner Out of Pocket Expenses


Why would you hire a General if you didn't need a General? The fee is standard and reasonable, doesn't matter who the suppliers are.

Who is going to co-ordinate the various trades and make the calls and oversee the critical path and see to it that all work is correct and up to par and acceptable?
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Old 02-08-2011, 09:46 PM   #5
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I don't know the agreement between you and the GC. But if the GC is orchestrating the entire project, then he is responsible for the entire project and deserves to be compensated.

An experienced GC who can jungle all the elements of a large project, keep it going smoothly, maintain quality with his workers and subs, nip any problem in the bud, and have open communication with the owners is worth every penny.
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Old 02-09-2011, 05:13 PM   #6
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...is worth every penny.
Absolutely! Using a General Contractor doesn't cost - it pays.
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Old 02-09-2011, 05:23 PM   #7
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General Contractor Fees On Owner Out of Pocket Expenses


in the past I've worked jobs as a sub for homeowner's that decided to GC their own jobs.

It's definitely true. I can guarantee they nearly always end up paying more in the end then it would have cost them to hire a good GC.

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