What is an acceptable commission charged by the contractor on a small remodel project?
I have a contractor proposing a charge of cost + 25%, and that seems a bit hight to me. What I mean is the contractor told me that he charges a cost + 25% fee on any additions to the contract during the project. When I was in the business, I only charged cost+ 20%...
Public Comments
- it depends on what your doing. and post what state your in.
- It's pretty standard to have "mark-ups" within the 15%-25% range. The charge is not just profit. On "cost plus" work you're basically paying for workers wages & materials, then the total is "marked up" as stated 15-25%. The markup covers direct & in direct expenses, payroll taxes, vehicle & equipment charges, profit, etc. Every company has different markups but the range sounds about right, albeit on the higher end.
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