Is it customary that a kitchen remodel expense would include the contractors 12% overhead on absolutely everything: Materials purchased, subcontractors (both of which I could understand), but his own cabinetry building work as well. Even including the time he charges for consultation w/us, which I think is a bit "out there" anyway. Thanks for any guidance on this.
Simple answer = Yes. it's pretty much standard industry practice.
As Joasis sated, overhead fees are the norm. I charge 20% for materials. That cost covers a lot of expenses (some of it gets delivered.....some of it gets picked up and transported to the job = time+fuel use = $$$) . Additionally, the overhead fees on the subcontractors cover my time to manage and cor-ordinate their work (Phone calls, communication, meeting with, reviewing, inspecting, coordinating, things that are done for the hired subs, etc).
Example: I am starting a master bedroom and master bathroom remodeling next week. The home owner has agreed to GC the work, using his own plumber and electrician. I will do everything else. I am NOT supposed to pull the permit. However, he has taken up much of my time, with the permit application, including, having me fill out 50% of it. Normally, I charge additional overhead to cover that time. It's taken approximately 2 + hours of my time, during the day, when I am supposed to be at other jobs, or doing other things for my business (and I don't have any extra time, as we are currently deluged with work right now).
In the afore mentioned situation, the Home Owner, is supposed to coordinate the other subcontractors, and take care of the required inspections. If he calls me to be involved, or I get a call from the local building inspector to be present at any inspection - my additional charges will be billed to him (over my contracted work agreement cost). FWIW - I put that in all my contracts (such things are extra). I have no problem helping out home owners (as can be seen by my time on here). But, once such a project (Home Owner as GC) starts involving more of my administrative work - my time, gas, and other things, (and is beyond what is laid out and agreed upon) it's time to submit additional overhead charges.
However, on the other hand, if I have a project, where we are the GC, then the additional charges are part of the overall cost, and it's all set up like that from the beginning.