General contractors manage the full job — their profit comes from GC markup on subcontractor costs (typically 15–25%), direct labor, and fee for coordination and risk management. A whole-house remodel running $80,000 in sub costs should generate $12,000–$20,000 in GC gross profit before overhead. This calculator builds a complete GC estimate from subs, self-perform work, permits, and overhead.
The standard GC markup on sub bids is 15–20% for residential work and 10–15% for competitive commercial bids. This markup covers estimating time, scheduling coordination, punch-list management, warranty liability, and the risk of a sub performing poorly. Never apply markup as a single percentage on the subtotal — apply it line by line so change orders stay clean.
When GCs self-perform carpentry, demo, or supervision, they charge a fully loaded rate that covers wages, employer taxes, workers' comp, tools, and overhead — typically $85–$140/hr for a lead carpenter in most US markets. Keep self-perform costs and sub costs on separate lines in your estimate so each profit center is visible.
GCs typically charge 5–10% of contract value as a project management or general conditions fee covering permit pulls, inspection scheduling, temporary facilities (dumpster, portable toilet, site power), and superintendent time. On larger jobs, list general conditions as a separate line item with full detail — it builds trust and makes scope changes easier to price.
Experienced GCs build a 5–10% contingency into every bid for unforeseen conditions — especially on remodels where walls hide surprises. Overhead (office, insurance, estimating time, marketing) typically runs 8–15% of revenue for a small GC firm. If your overhead isn't in your rate, it comes out of profit. Use the EstiDash overhead field to make this visible in every estimate.