How Much Does a General Contractor Cost in 2025?

Average General Contractor Cost

General Contractor Cost Factors

The amount a general contractor charges depends on the project, its scope, additional services required, and markups. 

Cost by Project

General contractors usually determine their fees based on a percentage of the project's total cost, so their fees depend on the size of the project. Here’s a list of common home remodeling and construction projects with average price ranges.

Project Scope

General contractors often evaluate the scope of a project and base their rates on the time, materials, and labor required. The more extensive the project, the more you’ll pay. Simple jobs, like adding a few shingles to the roof, won’t incur as high of a fee as complex projects like renovating an entire house. 

Additional Services

Depending on the project, your contractor may charge additional fees for building permits, hiring subcontractors, drafting blueprints, or completing a land survey. Some common fees you may see include:

Percentage Markup

Local general contractors typically do not charge an hourly rate but instead set their fees by charging 10% to 20% of the project's overall cost, a practice known as “cost-plus.” For bigger projects, a general contractor may charge a fee of up to 25%. 

Hourly Rates

While most general contractors charge their customers using the cost-plus method, some will also agree to work for an hourly rate. Hourly rates for contractors range from $50 to $150. If a general contractor agrees to work at an hourly rate, they’ll likely require the customer to commit to a minimum number of hours. 

Pricing Model

General contractors set their rates in one of two ways. The first pricing model is a fixed price—also called the lump price—for the entire project. They may also use a time-and-materials contract or cost-plus. While many customers prefer the fixed-price method, some contractors prefer to use time and materials. 

Fixed Bid

With this model, the contractor presents the customer with a fixed price covering the project's labor and materials from start to finish. While fixed bids are attractive to customers as they allow them to see the price upfront and eliminate unexpected price tag surprises and additional costs mid-project, contractors generally don’t prefer this method. 

A fixed price requires the contractor to secure subcontractors ahead of time and calculate specific costs for materials and equipment to create as accurate a quote as possible and prevent financial losses. This process can be time-consuming and may result in no returns if the customer rejects the bid. 

Time-and-Materials (or Cost-Plus)

The more common of the two pricing models is a time-and-materials contract. With this pricing model, a contractor gives the customer an estimate of the total cost based on materials and sets an hourly labor rate. Since the price is only an estimate, this may create some uncertainty for customers. The estimated cost may change mid-project if the construction hits any snags or delays. 

General Contractor vs. Construction Manager

They may sound similar, but a general contractor and a construction manager are two different things. 

General Contractor Role and Responsibilities

Homeowners hire a general contractor to manage the entire project from start to finish. The general contractor is responsible for hiring subcontractors and laborers to complete the work and overseeing the project to ensure it stays on budget and the work gets done. The general contractor is also the point person for the project, handling all communications with the customer. 

Construction Manager Role and Responsibilities

A construction manager acts as a consultant, leaving the customer to do much of the project management. With a construction manager, the client has more involvement. The manager helps procure and review bids from subcontractors, assists with scheduling, and oversees the construction process. However, the customer supervises each step.

They are responsible for hiring and paying each subcontractor, procuring necessary permits, and ensuring the work is done correctly. Since a construction manager is less involved, they typically charge about half of what a general contractor charges, allowing the customer to save considerable money, especially for larger projects. The average cost to hire a construction manager can range from $3,000 to $95,000, depending on the project scope. 

The downside with a construction manager is that the customer must handle any issues that may arise during the project, including substandard quality, subcontractors failing to show up, and procuring all necessary permits.

Budgeting for General Contractor Costs

The cost to hire a general contractor can vary greatly depending on the type and scope of the project. To keep costs down, consider the following money-saving tips: 

• Obtain quotes from at least three local contractors to find competitive pricing.

• Clearly explain the entire scope of the project to avoid unexpected charges.

• Do the simple tasks yourself—such as painting or cleanup—to reduce labor fees.

• Look for promotions or discounts during off-peak seasons.

• Check local hardware stores for discounts on materials. 

How HomeAdvisor Gets Its Cost Data

No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. After a project is complete, we survey real customers about the costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.