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by Jodie44 on October 6th, 2005

Jodie44

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What's the average percentage a general contractor adds to a subcontractor's bill before submitting it to a homeowner for payment?

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  • by breadmanpaul on October 12th, 2005

    breadmanpaul

    My dad was a drywall contractor in the San Francisco Bay Area from 1954 until about 1990. During that timeframe and in that area, the norm was 10%.

    On a different point, you would probably be well within your rights, to retain 10% of every bill submitted for payment until 90 days after completion of the project. At that point, you would trade the final payment for lien releases from the general contractor and ALL of the sub-contractors. The point of the 10% retention is to assure that all work is completed to your satisfaction. if something hasn't been completed properly, you hold the profit until it has been completed. Otherwise, you have nothing to bargain with.

    You should not make final payment without receiving lien releases. Otherwise, when you sell your house, you may find mechanics liens on your house for the FULL PRICE of the work completed. Then you have the choice of paying the full price for the work AGAIN, or fighting it in court.

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    • Very useful. Our gc adds 25% (!!) Thank you for the good advice, too - well worth considering.

      Jodie44

      by Jodie44 on October 12th, 2005

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