We’re a small general contractor, our fee on our projects that we typically assign is between 5-7%. What do other people / companies charge and should I be charging this much or consider reducing it?
We traditionally carry between 3-5% for commercial projects and 2-4% for residential. These are all larger projects though.
It ultimately comes down the the competition, if you can hide fee elsewhere and what the risk on the project is.
On small projects we normally actually try to carry around 2-5%. The amount carried will depend upon how much competition we have and how badly we want the job.
We also typically pick up a few points in our buy out phase if it’s a lump sum project.