Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
New Member Introductions
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 9 years ago,

User Stats

218
Posts
103
Votes
Ravi P.
  • Investor
  • Schaumburg, IL
103
Votes |
218
Posts

GC margins?

Ravi P.
  • Investor
  • Schaumburg, IL
Posted

We bid a renovations project to 3 GCs.  I have only received 1 response so far. But the GC accidentally sent me a breakdown of his subs cost associated with the project with his mark up 45%  plus a 5% kick back fee to the interior designers that referred him.  So I am looking at a 50% mark up.  I know the GC provides a service and deserves to be compensated for his services, so long as he earns it.  But I am curious to see what is the typical GC mark up.  My understanding is that most GCs get paid  on a cost plus method similar to this one but I am shocked by the margin of the mark up. The other 2 GCs are independent of the interior designers. 

Another issue for another day is the kick back fee to the designers. I paid them a reasonable flat fee for there services.  The fact they are pushing their contractors makes me skeptical. I felt like they were pushy, but I assumed they wanted to work with people they know.  But I now know the real reason.  They fee they would have made on the kick back would have doubled their income.  

What I really want to know is what is a typical GC fee.  The renovation project should cost about 100k.  

Loading replies...