What is an average percentage for a cost plus fee?

Answer 1

It really depends upon the project - there is no typical amount. A lower valued project will typically have a higher % fee, because let's face it, there is a minimal amount of work no matter what the size of the job is...whereas a larger more expensive job is one that a contractor can count on for a longer period of time and will have a larger overall payout for the work they do. My experience is that if you are looking to "win" and get the most for the least, then you may or may not get the most. In fact if your contractor feels like they have "lost" and they have other work that pays better - guess which one they will spend their time on. It is very true that you get what you pay for...and trust me, not all work is the same in the construction industry. A good contractor will help you through this. For instance, there are big differences in the way siding is installed, yet to the average person it is all the same...because it looks the same at first. But when you develop a leak or the trim boards start to pull apart in a few years you will notice the difference (this is just one example) Talk with the contractor, find out what you will get for your money, and be specific. You should also be specific as to the length of the job, and if you have selections to make - what those selections are and when you need to have them complete. It's a 2 way street, and while jobs usually take longer than planned, many times this is the result of a client that is unable to make timely decisions or changes their mind. You may be better off going with a fixed cost for the general contractor, and you pay all the bills. After all - if it is cost plus what incentive does the contractor have to get you the best price. Good luck.