Quick Answer: How Much Does A Good General Contractor Make?

What type of contractor makes the most money?

Finally, the amount you make can also depend on which type of construction you do.

The highest paid workers tend to be computer systems design contractors.

This is usually followed by building equipment contractors, nonresidential building contractors, and residential contractors..

How much should I charge as a contractor?

Answer: There is no standard rate for general contractors, as it differs from state to state, cities, and counties, but generally, the range that one would expect to pay is between $25.00 – $85.00 per hour.

How do I price myself as a contractor?

Use the following calculations to determine your rates:Add your chosen salary and overhead costs together. … Multiply this total by your profit margin. … Divide the total by your annual billable hours to arrive at your hourly rate: $99,000 ÷ 1,920 = $51.56. … Finally, multiply your hourly rate by 8 to reach your day rate.

How much profit should a general contractor make?

Typically, a minimum profit objective is 8%, an average company is 10%, but we believe a well-run, efficient construction company should make 15%.

Is being a general contractor profitable?

According to the Construction Financial Management Association (www.cfma.org), the average pre-tax net profit for general contractors is between 1.4 and 2.4 percent and for subcontractors between 2.2 to 3.5 percent. This is not enough profit to compensate the risk contractors take.

How can I start a construction company with no money?

Starting a Construction Company With No Experience / MoneyWrite a business plan. Crafting a business plan for your proposed construction company is very important. … Find a good location for your business. … Learn the rules. … Gather and check your equipment. … Hire competent people to work with you. … Market your business.

What is a normal general contractor percentage?

As a rule of thumb, general contractors will charge between 10 and 20 percent of the total cost of your renovation or remodel. This rate will likely depend on the size and scope of your project, your geographic location, and the materials, labourers, and permits required for the job.

Do you get paid more as a contractor?

Contractors earn more money than employees do. It’s that simple. That is because contractors charge more and can take home a lot more of their pay than employees are able to. Contractors have three major advantages: they typically charge more, they pay less in taxes, and they can deduct their expenses.

What is a typical contractor markup?

General contractors (GC) typically charge about 10 to 20% of your total construction project cost. For larger projects, you might pay closer to 25% for their services. They do not charge an hourly rate.

What is the highest paid construction trade?

1. Elevator Installers and Repairer. Elevator installation and repair workers earn the highest pay in the construction and extraction occupations by over $20,000 a year. In addition to elevators, they install and repair escalators, moving walkways and other lifts for people and products.

What’s the best construction business to start?

Starting a Construction Company – An Industry OverviewCement Manufacturing Plant. … Cement Block Manufacturing. … Open a Cement Retailing Business. … Ceramic Tile Retailing & Installation. … Manufacturing of Blocks and Bricks. … Fly Ash Bricks Manufacturing. … Offer Bricklayer Services. … Real Estate Broker.More items…

What makes a good general contractor?

When you’re ready to do home improvements or to build a new home, a good general contractor is one of the best assurances of a quality job. … Five qualities to look for in a general contractor include experience, reputation, integrity, flexibility and the ability to listen.

What should you not say to a contractor?

Seven Things to Never Say to a ContractorNever Tell a Contractor They are the Only One Bidding on the Job. … Don’t Tell a Contractor Your Budget. … Never Ask a Contractor for a Discount if You Pay Upfront. … Don’t Tell a Contractor That You Aren’t in A Hurry. … Do Not Let a Contractor Choose the Materials.More items…

What percentage does a general contractor make on a project?

General contractors get paid by taking a percentage of the overall cost of the completed project. Some will charge a flat fee, but in most cases, a general contractor will charge between 10 and 20 percent of the total cost of the job. This includes the cost of all materials, permits and subcontractors.

What is a fair markup on materials?

Typically we markup our equipment and materials for an installation job somewhere between 25 and 50 percent. When it comes to parts, the markup is even higher. We should be averaging at least 100 percent for all our spare parts.

How much can an independent contractor make?

National AverageSalary Range (Percentile)25thAverageAnnual Salary$29,000$56,021Monthly Salary$2,417$4,668Weekly Salary$558$1,0771 more row

Is being a general contractor stressful?

It takes a strong individual to be a builder or contractor, both physically and mentally. The stress of managing a business, running a job-site, tracking deadlines, scheduling deliveries, not to mention selling jobs, is not a career for the faint of heart. … As a contractor, your husband is under a ton of stress.