Is a Project Management Fee Standard for Contractors?

[Paul Smythe]

I'm working on a deal and a quote from one of my contractors has a project management fee included in there. In the BP community's experience, is that a standard line item for most contractors? I've seen budgets with and without it.

[David Robertson]

Hi Paul,

All contractors estimate their overhead & profit a little differently.

Some contractors markup their total project estimate by a % of the job to account for their overhead costs which is evenly distributed across the entire estimate.

Other contractors itemize their overhead & include it in their job estimate.  

I imagine your contractor is doing both, and has itemized certain overhead items in his estimate and then included a % of profit that is evenly distributed across the estimate.

Either way, Project Management is a job cost that should be included in the estimate, it doesn't really matter whether it is estimated by a % or itemized, it will cost you the same.

I imagine this is why contractors don't like itemizing their estimates, because often times clients get too nit picky :)

If you really think his # is unreasonable, get another quote.