Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Labor/Profit in construction
Old 05-24-2008, 06:45 AM   #1
Full time employment: Posting here.
 
Join Date: Dec 2006
Posts: 886
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%?
__________________

__________________

Trek is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-24-2008, 07:56 AM   #2
Thinks s/he gets paid by the post
Rustic23's Avatar
 
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 3,624
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.
__________________

__________________
Rustic23 is offline   Reply With Quote
Old 05-24-2008, 10:00 AM   #3
Recycles dryer sheets
Charlotte's Avatar
 
Join Date: Feb 2007
Posts: 176
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
__________________
Charlotte is offline   Reply With Quote
Old 05-24-2008, 10:17 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
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...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Old 05-24-2008, 10:26 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
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.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 05-24-2008, 11:52 AM   #6
Thinks s/he gets paid by the post
lazygood4nothinbum's Avatar
 
Join Date: Feb 2006
Posts: 3,895
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.)
__________________
"off with their heads"~~dr. joseph-ignace guillotin

"life should begin with age and its privileges and accumulations, and end with youth and its capacity to splendidly enjoy such advantages."~~mark twain - letter to edward kimmitt 1901
lazygood4nothinbum is offline   Reply With Quote
Old 05-24-2008, 10:27 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,951
Quote:
Originally Posted by Charlotte View Post
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
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.
__________________

__________________
jazz4cash is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Nuclear Power Plant Construction haha Stock Picking and Market Strategy 16 08-12-2007 09:50 PM
Retired Labor Day 2006 OkieTexan Hi, I am... 14 11-12-2006 11:55 PM
What are your Labor Day plans? Nords Other topics 46 09-07-2006 02:33 AM
Labor Day Weekend Dawg52 Life after FIRE 21 09-09-2005 04:03 PM
42% of workers working on Labor Day Kronk Other topics 10 09-03-2005 12:15 PM

 

 
All times are GMT -6. The time now is 11:08 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.