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How Much Should You Spend to Hire General Contractors?

If you plan to hire a general contractor in Salt Lake City, you should expect them to charge between 10% and 20% of a home improvement project’s total cost.

It’s rare to find a company that charges by the hour. On average, most homeowners in the city usually spend $2,910. The size of your project will determine the actual price. Some people can only pay almost $1,300 for smaller projects, while bigger ones can cost up to $4,500. Larger projects can prompt a general contractor to charge 25% of the overall expenses as their fee.

Uniform Prices

Even if you decide to hire a company outside of Salt Lake City, the rates might be the same elsewhere in Salt Lake County. The average rates in the city might not include extra general contractor fees. You should add at least $350 to your budget for these other expenses. You can, however, ask the company to itemize all costs in a quote to avoid unexpected charges.

You should also look for at least three different contractors when comparing rates for a better decision. While most service providers handle all types of home construction work, but some companies can charge higher fees if they specialize in the designated job, such as bathroom or kitchen remodels.

Cost Per Project

The nationwide average for building a room addition costs $44,000, which means you could spend at least $4,400 on the contractor’s fees alone if they charge 10%. The fees for remodeling bathrooms can cost $1,000 based on 10% of the average price of $10,000 per project. If you need to build a garage, be ready to spend up to $26,500 on the project and $2,650 on the contractor’s fees.

These prices aren’t the standard because of other factors like the size of your house, materials, and supplies. General contractors’ fees can also depend on liability insurance, taxes, workers’ compensation, and other overhead expenses. Always ask for any service guarantees and their insurance coverage for your protection. It won’t hurt to inquire about specific discounts, especially if you pay in full with cash.

Are Design-build Firms More Economical?

architects discussing the blueprint

You might have heard of design-build contractors for residential projects. If you don’t want to transact with too many people, a design-build firm can be your best option. These companies often employ architects, construction managers, and engineers, so you won’t need to hire each one separately. You can hire independent contractors, particularly construction managers, but their rates are not significantly cheaper than hiring those associated with a company.

However, a particular disadvantage of hiring a design-build firm requires you to trust that company more than any other firm. You can solve this problem by looking at track records for project deliveries and references from previous clients.

A general contractor in Salt Lake City can either offer a free estimate or a paid inspection that can range from $50 to $1,000. The initial fee can be added to the total expenses if you’re already decided to hire them. Otherwise, it’s better to find companies that offer free estimates.

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