How Much Does Construction Management Cost in 2025?
Construction management fees cost an average of $47,656
Construction management fees cost an average of $47,656, ranging between $3,081 and $94,754, on average.
Construction managers usually charge 5% to 15% on top of the total project cost, but they may use other pricing structures.
Accounting for varying project costs, large projects have higher total construction manager fees but lower percentages, while small jobs have higher rates but lower costs.
New construction usually has higher fees than comparable remodels because they often involve greater complexity and specialization.
Hiring a professional construction manager alleviates stress and ensures your project stays on track and runs smoothly.
This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.
Construction supervision fees vary widely, ranging on average from $3,081 to $94,754, with an average cost of $47,656. Factors influencing these costs include location, project size, and quality requirements. Proper budgeting and hiring a professional construction manager are essential to ensure your project's success.
Construction Management Cost Factors
There are many factors that impact your final construction management cost. Here’s a closer look at how your total is determined.
Total Project Cost
Construction management oversees your project from planning to completion. When you hire a construction manager, you hand off responsibilities like coordinating with subcontractors, procuring resources, managing the budget, scheduling, and more. The cost of hiring a construction manager is directly related to your project costs, ensuring you cover material and labor expenses and compensate the manager for their services.
Typically, construction managers apply a percentage scale based on your project's value, often charging a higher percentage for smaller projects than larger ones.
| Total Project Cost | Average Fee Range |
|---|---|
| Less than $1,000,000 | 5%–15% |
| $1,000,000–$10,000,000 | 5%–9% |
| Over $10,000,000 | 1%–5% |
Project Type
The complexity and scale of your project often vary by type. Large and complex new construction projects generally have a lower percentage-based fee due to the higher total project value. In comparison, smaller-scale builds often incur higher percentage fees but lower overall costs. For example, building a new home often involves the highest total fee because of the project’s complexity, size, and extended timeline, even if it’s a relatively low fee percentage.
| Project Type | Average Cost Range | Construction Supervision Cost |
|---|---|---|
| New home | $150,000–$450,000 | $7,500–$67,500 |
| Home addition | $170–$200 per square foot | $1,122–$3,960 |
Fee Structure
Construction managers structure their fees in different ways, usually depending on the type and scale of your project to best reflect the value of their work. Each fee structure carries different implications for cost liability and predictability for both you and the contractor. Here’s how these fees work:
Percentage: This is the most common structure, averaging from 5% to 15% of your total project cost.
Fixed fee: The construction manager charges a set amount for the entire project, sometimes paid in installments according to project timelines. This can also be a set retainer fee, meaning you pay upfront for the project regardless of how long or expensive it becomes.
Hourly/daily rate: Usually reserved for intensive or complex tasks, hourly and daily rates vary depending on experience, location, and other variables.
Cost-plus fee: The contractor charges the actual amount of the project plus a flat or fixed fee.
Alternatively, contractors may separate fee structures depending on the phase of your project. For instance, they may charge 10% during the design and planning phase and 15% during the building phase.
| Fee Structure | Standard Cost |
|---|---|
| Total project percentage | 5%–15% |
| Fixed fee | $3,000–$50,000 |
| Hourly rate | $45 per hour |
New Construction vs. Renovation
For renovation projects, manager fees range from 5% to 15% of the total cost, depending on the scope and complexity of the job. Since renovations are generally smaller in scale compared to new construction, they attract a higher percentage fee for supervision. Costs also vary depending on the size of your project and the level of oversight required.
Home additions and remodels generally require more oversight, resulting in higher supervision fees ranging from $2,200 to $15,000. Lower-cost renovations like decks and patios have more modest supervision costs, ranging from $120 to $2,000.
Bathroom and kitchen remodels are medium-sized projects that cost $550 to $8,300 for construction management fees, often due to plumbing, electricity, gas lines, and specialized work. For example, if your bathroom remodel costs between $6,600 and $17,600, the project management fee would be between $330 and $2,640.
Likewise, kitchen remodels cost between $14,600 and $41,500, so construction management fees would be between $730 and $6,225.
Labor Cost for Pros
Construction managers often collaborate with various professionals to ensure the project's success. Key professionals include:
General Contractors: They handle daily construction site logistics and project execution. General contractor fees range from 10% to 25% of your overall project cost.
Architects: They design your project and create detailed plans. Hiring an architect costs between $2,000 and $8,500, depending on project complexity and location.
Structural Engineers: They assess and ensure the structural integrity of your project. Structural engineer fees range from $500 to $3,000, varying by region and project scope.
These costs can vary based on regional market rates and your project's specific requirements.
Budgeting for Construction Projects
Construction managers help keep your project budget under control, but you can also use strategies to streamline expenses and maximize your investment. Try these budgeting tips for your next project:
Get multiple detailed quotes to understand what each service includes.
Look for contractors with experience or specialization in your specific project.
Negotiate a fee structure that matches your project. For large projects, percentages or fixed fees are usually more cost-effective than hourly rates.
Simplify your project by focusing on priority tasks or features to avoid going over budget.
Add buffers to your timeline and budget to accommodate delays due to weather, permits, material availability, or other issues.
DIY vs. Hiring a Construction Manager
While it may be tempting to forgo your project’s construction management fees, it’s not advisable, especially if you’re working on a large-scale project like building a house or a project with multiple systems and components, like a bathroom renovation. These are complex projects with many tradespeople that need to be coordinated and scheduled. Hiring a professional construction manager helps your project stay on track and on budget, and alleviates the stress of managing the project yourself.
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
Construction management contracts should clearly outline all project details from inception to completion. They serve as a comprehensive guide that defines the responsibilities and deliverables for both you and the construction manager.
These contracts detail the project scope, agreed rates, pricing structure, specific manager responsibilities, project timeline, payment schedules, termination clauses, and deliverables. This thorough documentation ensures accountability and provides a clear roadmap to resolve any disputes that may arise during the project.
An exceptional construction manager demonstrates a deep understanding of every phase of a project and excels in leadership and technical coordination. They possess extensive knowledge of construction processes, regulations, and industry techniques.
These professionals are proven leaders with strong business management, organizational, and financial abilities. They coordinate diverse teams, manage resources with precision, and resolve on-site challenges decisively while maintaining rigorous quality control at every stage of your project.
Construction managers oversee your project from the early design phase to the final inspection, ensuring that every detail aligns with high-performance standards. In contrast, general contractors focus on day-to-day operations and on-site team management to execute the project efficiently. This separation of duties means that construction managers handle overall planning, coordination, and quality control, while general contractors concentrate on practical execution and immediate problem resolution on-site.
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