The Industry Standard for Contractor Markup

Pardon our Dust raises a good question about contractor markup costs. The homeowner feels 22% is way overboard but from the comments and through a bit of research it looks like 22% is actually quite reasonable. Despite what people think or talk about there is no industry standard for pricing remodeling jobs. Successful contractors run their business at the margins that suit them and what the market will bear.

You will definitely save money by installing yourself as the general contractor of your remodeling job but bear in mind it’s not about just “babysitting” subs. There are a lot of factors to consider when managing subcontractors but above all make sure you document everything and communicate well.
The issue of how much your contractor takes home should not effect the budget for your own job. Stick to your budget and find a contractor you believe will do a great job at a price you can afford and be happy.

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Timothy Dahl

Timothy Dahl

Founder/EIC at Charles & Hudson
Timothy’s background includes stints at This Old House, ELLE DECOR, Metropolitan Home and Woman’s Day. His work has been published on Wired Design, Bob Vila, DIY Network, The Family Handyman and Popular Mechanics and he has been featured on the Martha Stewart radio show and as a speaker at the ALT Design Summit, K/BIS and the National Hardware Show.