How Much Is a General Contractor’s Hourly Rate in 2025?
General contractor costs range from $250 to $58,000, depending on the project size and scope, pricing model, and rates.
General contractors charge between 10% and 20% of the total project cost.
Additional services, such as permits, subcontractors, and land surveys, can also impact the overall cost.
Hiring a professional general contractor ensures proper project management and quality workmanship.
This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.
Starting a new construction or remodeling project? Understanding general contractor costs is essential for effective budgeting. General contractor fees range from $250 to $58,000, influenced by factors like location, project size, and quality. Most often, they charge between 10% and 20% of the total project cost. In some cases, they may apply an hourly rate, ranging from $50 to $150 per hour. Proper budgeting and hiring a professional general contractor are crucial to ensuring your project is completed successfully.
General Contractor Cost Factors
The cost of hiring a general contractor depends on several key factors, including your project's type and scope, labor costs for professionals, and the contractor's pricing model.
Cost by Project Type
Since general contractors base their fees on a percentage of your project's total cost, their charges will depend on the project's size and complexity. Below is a list of common home remodeling and construction projects with their average price ranges.
| Project | Average Project Cost | Additional Contractor Cost |
|---|---|---|
| Home construction | $180,000–$450,000 | $18,000–$90,000 |
| Home remodel | $20,000–$75,000 | $2,000–$15,000 |
| Home addition | $23,000–$75,000 | $2,300–$15,000 |
| Bathroom remodel | $2,500–$15,000 | $250–$3,000 |
| Bathroom addition | $18,000–$50,000 | $1,800–$10,000 |
| Kitchen remodel | $15,000–$50,000 | $1,500–$10,000 |
| Basement remodel | $25,000–$50,000 | $2,500–$10,000 |
| Garage construction | $20,000–$30,000 | $2,000–$6,000 |
| Sunroom addition | $15,000–$80,000 | $1,500–$16,000 |
| New outbuilding | $5,000–$40,000 | $500–$8,000 |
| Drywall installation | $8,000–$30,000 | $800–$6,000 |
| Retaining wall | $3,000–$9,000 | $300–$1,800 |
| Deck construction | $4,500–$10,000 | $450–$2,000 |
| Concrete patio | $1,200–$5,000 | $120–$1,000 |
| New driveway | $1,700–$7,000 | $170–$1,400 |
| Fence installation | $1,600–$4,000 | $160–$800 |
| New support beam | $1,500–$6,000 | $150–$1,200 |
Project Scope
General contractors consider the scope of your project when determining their rates, factoring in the time, materials, and labor required. The more extensive your project, the higher the cost. For instance, simple tasks like replacing a few roof shingles will cost less than undertaking a full home renovation.
Labor
Your general contractor will likely work with various professionals, each bringing specialized skills to your project. Here's who might be involved and what they charge:
Electricians: They install and maintain electrical systems, charging between $50 and $100 per hour.
Plumbers: Handling the installation and repair of plumbing systems, plumbers charge $45 to $200 per hour, depending on complexity.
Carpenters: They build, install, and repair structures and fixtures made of wood and other materials, with rates ranging from $35 to $100 per hour.
Roofers: Installing and repairing roofs using materials like shingles and metal, they charge $45 to $75 per hour.
Drywall Installers: They install wallboards on ceilings or interior walls, averaging $30 to $50 per hour.
Hourly Rates
Although most general contractors use the cost-plus pricing method, some may agree to work for an hourly rate, ranging from $50 to $150. If your contractor charges hourly, they might require you to commit to a minimum number of hours.
Pricing Model
General contractors set their rates using different pricing models, which can affect the overall cost of your project:
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. This price often includes a 10% to 20% markup to cover overhead and profit. While fixed bids are attractive to customers as they allow them to see the price upfront and eliminate unexpected costs during the project, contractors generally prefer not to use this method.
A fixed-price contract requires the contractor to secure subcontractors in advance and calculate specific costs for materials and equipment to create the most accurate quote 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, also known as a cost-plus contract. With this pricing model, a contractor charges for all project costs plus an additional percentage markup—typically 10% to 20%—for overhead and profit. This method provides flexibility for contractors but may create some uncertainty for customers, as the final cost can change if the project encounters any snags or delays.
General Contractor vs. Construction Manager
While the roles of general contractors and construction managers might seem similar, they have distinct responsibilities that set them apart.
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 serves as the primary point of contact 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 charge about half of what a general contractor charges, allowing the customer to save considerable money, especially for larger projects.
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 obtaining all necessary permits.
Budgeting for General Contractor Costs
The cost of hiring a general contractor can vary significantly based on the type and scope of your project. To help you keep costs down without compromising quality, consider these money-saving strategies:
Obtain quotes from at least three local contractors to find competitive pricing.
Clearly define and communicate the full scope of your project to avoid unexpected charges.
Purchase materials yourself to avoid contractor markups, ensuring they meet quality standards.
Schedule your project during the off-peak season when contractors may offer lower rates.
Bundle multiple projects together to potentially qualify for a bulk discount.
Handle simple tasks like site cleanup or painting yourself to reduce labor costs.
Use recycled or reclaimed materials where appropriate to reduce material costs.
Ensure all necessary permits are obtained promptly to avoid costly delays or fines.
DIY vs. Hiring a General Contractor
While it may be tempting to manage your project yourself, hiring a general contractor is highly recommended. A local general contractor works to ensure your project stays on track and on budget, dealing with any obstacles, coordinating with other professionals, and ensuring that you’re happy with the results.
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.
Frequently Asked Questions
A general contractor oversees a project from start to completion. They create the project’s timeline and schedule, hire, manage, and pay subcontractors and workers, and purchase and deliver building materials and supplies. They’ll also acquire necessary permits and HOA approvals, plan and execute necessary project changes, and make sure work meets quality standards.
Hiring an independent general contractor costs between 10% and 20% of your overall project cost, with larger projects incurring fees up to 25%. This fee covers complete project oversight, scheduling, and subcontractor management. The fee ranges from a few hundred dollars to tens of thousands of dollars, reflecting the full scope of the planned work and ensuring seamless coordination throughout the construction process.
General contractors typically provide estimates at no charge, but some may charge a small fee, especially for more complex projects. It's important to secure a written estimate, as it establishes a transparent agreement on project scope, labor, materials, and any additional fees. This helps protect you against unforeseen expenses and ensures clarity before the work begins.
When hiring a general contractor, you must provide an upfront deposit that ranges from 10% to 20% of your overall project cost. This deposit secures material orders, labor scheduling, and initial project preparations. An upfront deposit exceeding 50% is a clear warning sign and should prompt thorough contract verification before proceeding.
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