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Labor/Profit in construction
05-24-2008, 05:45 AM
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#1
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Full time employment: Posting here.
Join Date: Dec 2006
Posts: 886
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Labor/Profit in construction
What's the typical profit percentage above materials in typical home construction/renovation in the U.S.?
For example, you hire a guy to remodel your bathroom (or whatever) and the materials cost X. How much typically is added on for labor in your area?
I know there a countless variables, but still, some rough figure.
X + 15%, 25%, 50%, 100%?
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05-24-2008, 06:56 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 4,204
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When we built our home we figured the labor cost were about 60%. Hard to figure as different things had different labor cost. Cabinets -Skilled carpenter, Foundation - lost of steel and cement 5 day laborers.
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05-24-2008, 09:00 AM
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#3
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Recycles dryer sheets
Join Date: Feb 2007
Posts: 244
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We are building a covered screened porch right now and have spent about $7000 on materials so far, will spend about $8000-8500 in total, I think. My DH is doing all the work himself, so it is a slow-moving project
We were quoted $18-20K by contractors bidding for the work, so I bet 40% materials, 60% labor & profit is about right - at least for this type of project.
Charlotte
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05-24-2008, 09:17 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
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Maybe not helpful, but my BIL said he charges ~$100/sf for a bathroom remodel. I'm sure that's a fairly generic amount, subject to wide variability...
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05-24-2008, 09:26 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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The hourly paycheck rate in my area for a pretty good licensed contractor tends to run around $30-40 for a framer, a little less for a roofer or fence guy, a little more for a tile and stone guy, and around $65-80 for a plumber or electrician.
Profit margins are all over the place. They're slimming and getting very competitive right now.
I'm having about 100k worth of work done for about 60k, which is almost at cost, for siding, windows, stucco, tile work and fencing. I am having to sleep with the construction company owners sister for these rates, so some sacrifice is definitely taking place.
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05-24-2008, 10:52 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 3,895
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you can generally figure percentage on a new build but tougher on renov. on smaller jobs the contractor will get a larger percentage when you are using cheaper materials because it will generally take the same work regardless of quality. a cheap sink or an expensive one will carry the same installation cost.
when i renovated (most all interior surfaces, flooring, new kitchen, new bath, crown molding, etc) i think the contractor got about 40% of total cost. had i torn down the house & built new, i don't think the contractor would get even 5% of total building cost (been a while since i've been in construction so i might be wrong on that but i seem to recall that architects get about 6% out of which they pay engineers and gc's get less.)
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05-24-2008, 09:27 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,328
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Quote:
Originally Posted by Charlotte
We are building a covered screened porch right now and have spent about $7000 on materials so far, will spend about $8000-8500 in total, I think. My DH is doing all the work himself, so it is a slow-moving project
We were quoted $18-20K by contractors bidding for the work, so I bet 40% materials, 60% labor & profit is about right - at least for this type of project.
Charlotte
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This fits right in with my one-size-fits-all formula:
1/3 material
1/3 labor
1/3 profit
+/- 10 % in each category for quality of material, level of skill required, etc.
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